To: Kirk © who wrote (25582 ) 8/19/2025 10:27:52 AM From: Kirk © Respond to Intel (INTC) has secured a major vote of confidence, as Japanese investment giant SoftBank (OTCPK:SFTBY) agreed to invest $2B in the troubled chipmaker. The announcement, which sent Intel's shares rising 5.4% to $24.93/share after hours on Monday, followed reports of the U.S. government eyeing an investment in the company. (From a SA email)SoftBank will buy $2B worth of Intel stock at $23/share, which would give the Japanese firm an around 2% stake, making it Intel’s sixth-largest shareholder. Partial nationalization? The announcement comes as the Trump administration is reportedly considering picking up a 10% stake in Intel. This would make the U.S. government its largest shareholder and would require about $10.5B, which could potentially be paid for by CHIPS Act funds. To note, Intel has already been awarded about $10.9B in CHIPS Act grants. The plan for a potential government stake is said to have emerged from last week's meeting between President Donald Trump and Intel CEO Lip-Bu. SA commentary: According to SA analyst Weebler Finance, the U.S. government's interest hints at Intel's potential to be a critical player in the U.S. semiconductor value chain and national security strategy. They added that Intel's renewed game plan to turn around its business creates a favorable risk/reward dynamic. But SA analyst Oriental Trader struck a more cautious note, given Intel's poor results in recent years and "all of this hype and government support could amount to nothing."
