Intel Gains Momentum as SoftBank Becomes Major Shareholder
The last few years have not been easy for the chip manufacturer Intel, but now there seems to be a light at the end of the tunnel: A first major investor is so optimistic about the renovation strategy that it is in the group’s billions.
Softbank invests billions
The Japanese Holding Softbank announced on Monday to invest around two billion dollars in Intel. The company thus acquires around two percent of the shares and increases the fifth largest shareholder. Softbank pays 23 dollars each for the share, the price is therefore only slightly below the Monday closing course of $23.66. After the message became known, the paper increased by six percent to $25. Entry is considered an important signal for Intel, which was recently under pressure.
While competitors such as Nvidia benefit massively from the AI boom, Intel has so far not been able to gain a foothold in the high-performance chips shop. In addition, the company has invested billions in building its own foundry division, which is to produce chips on behalf of other manufacturers in the future – but so far the major customers have failed to materialize.
“Masa and I have been working closely together for decades. I appreciate the confidence that he has to face with this investment,” said Intel boss Lip-Bu Tan, alluding to soft bank founder Masayoshi Son. Tan took over the rudder in March after his predecessor Pat Gelsinger was replaced at the end of 2024.
It’s slowly progressing
The group’s problems are serious: in 2024 the share lost around 60 percent of its value – the worst slump since IPO more than 50 years ago. So far, the paper has recovered by 18 percent this year. At the same time, Intel is also the focus of Intel: the only US manufacturer for the most modern semiconductors is considered strategically indispensable in Washington. According to media reports, the US government even thinks about a direct entry. With the investment, Softbank is further expanding its role in the global chip and AI sector.
As early as 2016, the group took over the chip designer ARM, the current market value of which is almost $150 billion. In addition, Softbank announced the purchase of ampere computing for $ 6.5 billion in March and in the spring it was in charge of $40 billion in Openaai – the largest private tech investment ever. Son justified the commitment to Intel with the words: “We are convinced that semiconductor production in the USA will continue to grow – and Intel can play a key role in this.”
Digital marketing enthusiast and industry professional in Digital technologies, Technology News, Mobile phones, software, gadgets with vast experience in the tech industry, I have a keen interest in technology, News breaking.
