Intel Corp. secured a $2 billion investment from Japan's SoftBank Group on Monday, a high-profile vote of confidence in the U.S. chipmaker as it struggles to catch up in the booming market for artificial intelligence semiconductors.
SoftBank said it would acquire Intel shares at $23 apiece, giving the Japanese conglomerate roughly a 2% stake and making it Intel's fifth-largest shareholder, according to FactSet. Intel stock, which closed at $23.66, rose 6% in after-hours trading to $25 following the announcement.
The investment comes at a turbulent time for Intel. Once the dominant force in global chipmaking, the company has fallen behind rivals such as Nvidia and AMD, missing out on much of the surge in demand for AI hardware. Intel's turnaround efforts have included billions in spending on its foundry business-an initiative to manufacture chips for other companies-but it has yet to secure a major customer.
"Masa and I have worked closely together for decades, and I appreciate the confidence he has placed in Intel with this investment," Intel Chief Executive Lip-Bu Tan said in a statement, referring to SoftBank founder Masayoshi Son.
Tan, who replaced Pat Gelsinger in March after Gelsinger was forced out, has moved quickly to restructure the company. Intel announced last month it had nearly completed plans to cut 15% of its workforce as part of a broader cost-reduction push.
Intel shares lost 60% of their value in 2024, marking the worst year in its history. The stock is up 18% so far in 2025, even as questions remain about its long-term competitiveness.
The investment also comes amid heightened political attention. Intel is the only U.S. company capable of manufacturing leading-edge chips, a critical factor in Washington's push to shore up domestic semiconductor production. Reports last week suggested the U.S. government is considering taking as much as a 10% equity stake in Intel, worth more than $10 billion.
Tan met with President Donald Trump last week after the president had called for his resignation. Trump later described the discussion as "very interesting" and called Tan's "success and rise ... an amazing story."
SoftBank's move extends its deep push into semiconductors and AI. The company purchased chip designer Arm in 2016 for $32 billion; Arm is now worth nearly $150 billion. In March, SoftBank agreed to acquire Ampere Computing for $6.5 billion.
"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," Son said.
SoftBank has also positioned itself at the heart of large-scale AI initiatives. Earlier this year, it joined Trump, Oracle, and OpenAI in the "Stargate" infrastructure project, which committed up to $500 billion to AI computing power over four years. The group followed that with a $40 billion investment into OpenAI, the largest private tech deal on record.
