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SoftBank Group's shares fell sharply on Tuesday, slipping more than 5% and ending a nine-day winning streak, after the Japanese investment firm revealed a $2 billion equity injection into Intel.
The deal, confirmed late Monday, makes SoftBank one of Intel's top ten shareholders, with the purchase priced at $23 per share, slightly below Intel's $23.66 closing price. Intel stock, by contrast, jumped 5.6% in after-hours trading as investors welcomed the lifeline.
SoftBank's move underscores its growing focus on artificial intelligence, following commitments such as its multibillion-dollar Stargate data center project in the U.S. "This investment reflects our belief that advanced semiconductor manufacturing will play a critical role in expanding U.S. capacity, with Intel positioned at the center of that effort," SoftBank founder and CEO Masayoshi Son said.
Intel has faced years of competitive and operational challenges, most recently reporting an $18.8 billion annual loss in 2024, its first since 1986. Rival AMD has chipped away at Intel's dominance in PC and server processors, while Taiwan's TSMC remains the global leader in contract chip manufacturing. Intel's turnaround strategy includes revamping its foundry business in hopes of landing major new clients, though analysts caution the shift will be costly.
Despite speculation about U.S. government interest in acquiring a stake in Intel, sources familiar with the matter emphasized that SoftBank's decision was independent of politics. Reports surfaced earlier this month that President Donald Trump pressed Intel's new CEO Lip-Bu Tan over his China ties, but SoftBank has not linked its investment to those talks.
For now, SoftBank will remain a passive investor. The company has no plans to seek a board seat at Intel or commit to purchasing its chips, according to people close to the deal.
Markets across Asia reacted cautiously. Japan's Nikkei 225 slipped 0.12% after reaching a record high the prior session, while South Korea's Kospi dropped 0.31%. Australia's S&P/ASX 200 lost 0.74%. In contrast, China's CSI 300 ticked up 0.13%, building on its strongest close since October 2024.
The Intel deal adds to a string of large-scale SoftBank investments in 2025, including a $30 billion commitment to OpenAI. It reflects Son's strategy of doubling down on AI infrastructure at a time when global demand for advanced chips is intensifying.
