SoftBank is investing $2 billion in Intel by purchasing common stock at $23 per share, roughly 2% of Intel’s outstanding shares.

This makes SoftBank the fifth-largest shareholder. Following the announcement, Intel shares rose about 6% in after-hours trading to $25.

Intel’s Stock Decline and Leadership Changes Amid AI Market Struggles

Intel’s shares lost 60% of their value last year, marking the company’s worst annual performance since going public.

The decline reflects Intel’s difficulties in the artificial intelligence semiconductor market, dominated by Nvidia.

CEO Lip-Bu Tan, who replaced Pat Gelsinger in March, noted his close relationship with SoftBank’s Masayoshi Son, “Masa and I have worked closely together for decades, and I appreciate the confidence he has placed in Intel with this investment.”

Intel’s Foundry Business Faces Customer Acquisition Challenges

Intel has heavily invested in building its manufacturing business, but has yet to secure a major customer for its foundry operations.

Last month, Intel announced it would wait to secure orders before committing to future investments.

The company is also a focus in Washington because it is the only American firm capable of manufacturing the most advanced chips.

SoftBank’s Expanding Role in the Semiconductor and AI Sectors

SoftBank has significantly increased its presence in the chip and AI markets. It acquired chip designer Arm in 2016 for about $32 billion, with Arm now valued near $150 billion.

In March, SoftBank announced plans to acquire Ampere Computing for $6.5 billion. SoftBank also participated in the Stargate initiative with OpenAI and Oracle, committing to invest $100 billion to $500 billion over four years in AI infrastructure, and led a $40 billion investment in OpenAI earlier this year.

SoftBank’s chairman, Masayoshi Son, stated, “This strategic investment reflects our belief that advanced semiconductor manufacturing and supply will further expand in the United States, with Intel playing a critical role.”

PHOTO: NIKKEI ASIA/KEN KOBAYASHI

This article was created with AI assistance.