Intel Shares Surge on SoftBank's $2B Investment Amid Trump Admin Plans

In a significant vote of confidence for the beleaguered chipmaker, Intel shares surged today following the announcement of a $2 billion investment from Japanese tech giant SoftBank, alongside reports that the Trump administration is actively considering acquiring a substantial stake in the company. This dual backing arrives at a critical juncture for Intel, which has grappled with extensive workforce reductions and public criticism from the Trump administration in recent months.

SoftBank Group, led by its visionary CEO Masayoshi Son, confirmed its intent to invest $2 billion in Intel common stock, securing an approximate 2% stake in the U.S. chipmaker. This move positions SoftBank as Intel’s sixth-largest shareholder and underscores a strategic alignment with the future of advanced semiconductor manufacturing in the United States. Son emphasized that “semiconductors are the foundation of every industry,” highlighting a belief that U.S.-based chip production, with Intel at its core, is poised for significant expansion. This investment is part of SoftBank’s broader, aggressive push into the artificial intelligence (AI) sector, which has seen the conglomerate recently triple its stake in Nvidia and engage in the ambitious $500 billion Stargate AI infrastructure project in the U.S. Despite SoftBank’s shares experiencing a slight dip in Tokyo, Intel’s stock saw an immediate jump in after-hours trading, reflecting investor optimism.

Adding to this financial infusion, the Trump administration is reportedly in discussions to take a substantial 10% stake in Intel, a move that could transform the U.S. government into the chipmaker’s largest shareholder. This potential acquisition is being explored through the conversion of a portion, or all, of the approximately $10.9 billion in grants Intel is slated to receive under the U.S. CHIPS and Science Act. Commerce Secretary Howard Lutnick confirmed the government’s pursuit, framing it as a strategic imperative to bolster domestic chip production and reduce reliance on foreign manufacturers, particularly those in Taiwan. He noted that while the initial CHIPS Act, signed under the Biden administration, provided grants, the Trump administration aims to secure an equity stake for the American taxpayer, albeit a non-voting one. This dramatic pivot follows earlier public demands from President Trump for Intel CEO Lip-Bu Tan to resign over alleged China ties, a stance that seemingly softened after a recent meeting where Trump reportedly found Tan’s story “amazing.” The government’s interest is seen by some analysts as a crucial “hero customer” role, vital for funding Intel’s ambitious next-generation chip manufacturing efforts.

These significant endorsements arrive as Intel navigates a challenging period marked by extensive restructuring and financial headwinds. In its second-quarter 2025 earnings report, released late July, Intel announced revenue of $12.9 billion, exceeding analyst expectations. However, the company reported a loss per share of $(0.10), largely due to $1.9 billion in restructuring charges and $800 million in impairment charges related to excess tools. Intel is in the midst of a massive workforce overhaul, with plans to reduce its core employee count by approximately 15%, aiming for 75,000 employees by the end of 2025. This includes halting planned factory projects in Germany and Poland and consolidating operations in Costa Rica, signaling a strategic re-evaluation of its global manufacturing footprint under new CEO Lip-Bu Tan, who assumed leadership four months prior. Intel has openly struggled to keep pace with rivals like Nvidia and Advanced Micro Devices in the booming AI chip market, a key factor in its recent financial losses and the need for aggressive turnaround strategies.

The convergence of SoftBank’s private capital and the U.S. government’s potential equity stake underscores the critical geopolitical and economic importance of domestic semiconductor capabilities. With the CHIPS and Science Act already catalyzing over $600 billion in private investments across the U.S. since 2020, aiming to triple national chipmaking capacity by 2032, Intel’s renewed backing from such influential entities could prove pivotal. It signals a collective determination to secure America’s technological future and reinforce its leadership in an increasingly competitive global landscape.