Intel shares jump as Softbank to buy $2bn stake in chip giant

Intel’s shares surged more than 5% in after-hours trading after Japanese technology investment giant SoftBank announced a $2 billion stake in the US chipmaker.

The deal, unveiled Monday, will see SoftBank purchase Intel stock at $23 per share, signaling renewed confidence in Intel’s turnaround and future role in the global semiconductor industry.

US Government in Talks for 10% Stake

The announcement came just hours after reports that the Trump administration is in discussions to convert existing government grants into an equity stake of around 10% in Intel.

The move is reportedly linked to Intel’s plans to develop a flagship semiconductor manufacturing hub in Ohio. While speculation has swirled since last week, a White House spokesperson told the BBC that such reports should be “regarded as speculation” until formally announced.

Growing Political and Strategic Pressure

Intel’s future has drawn intense scrutiny from Washington, as the US races to reduce reliance on Asian chipmakers such as Samsung and TSMC. Intel remains one of the few American firms capable of manufacturing cutting-edge semiconductors at scale.

Political pressure has intensified in recent weeks. President Trump has both engaged with Intel CEO Lip-Bu Tan and publicly called for his resignation, citing concerns over Tan’s past ties with China.

“Washington’s agenda is clear: accelerate domestic production, reduce dependence on Asia, and position Intel at the center of the AI and national security landscape,” said Dan Sheehan, chief strategist at Telos Wealth Advisors.

Analysts React: Lifeline or Precedent?

Some analysts view a potential US government stake as a lifeline for Intel. “This could reshape the government’s role in the private sector,” said political scientist Sarah Bauerle Danzman of Indiana University, who warned it may also set a “concerning precedent” by pushing firms to align with political agendas.

SoftBank’s move, however, was widely welcomed by markets. The company said in a joint statement with Intel that the deal reflects a shared commitment to advanced technology and semiconductor innovation in the US.

“This investment is a clear vote of confidence in Intel’s turnaround,” Sheehan added.

Wider Semiconductor Landscape

The developments come as the global semiconductor sector faces mounting geopolitical and regulatory challenges.

Just last week, Nvidia and AMD agreed to pay 15% of their Chinese revenues to the US government under an unprecedented deal to secure export licenses to China.

For Intel, both the SoftBank investment and a potential US government partnership could reshape its trajectory, placing it at the center of America’s semiconductor revival strategy