SoftBank is buying roughly 2% of Intel's outstanding shares in a $2 billion investment in the chipmaker. “Semiconductors are the foundation of every industry," SoftBank CEO Masayoshi Son said in a statement.
Major U.S. equities indexes were little changed Monday ahead of key retail sector earnings reports and comments from Federal Reserve Chair Jerome Powell expected later in the week.
Semiconductor stock Intel Corp (NASDAQ:INTC) has had quite a choppy year so far, though the $18 region has kept pullbacks in check.
The Trump administration is reportedly in discussions to acquire a roughly 10% stake in Intel Corp (NASDAQ:INTC, ETR:INL), a move that could make the US government the chipmaker's largest shareholder, Bloomberg News reported on Monday. A 10% holding in the American semiconductor giant would be worth around $10 billion.
I reiterate my buy rating on INTC stock, as the market is undervaluing its foundry potential and government intervention could be a game-changer. The semiconductor foundry industry is highly concentrated, and without strong government support, Intel is unlikely to turn around its foundry business. Recent news of potential US government equity stakes and tariffs signals a shift toward interventionist policy, which could benefit INTC significantly.
On August 6, CNBC's Mad Money host Jim Cramer criticized Intel (NASDAQ: INTC) for losing $18.8 billion on its foundries division last year, even with the help of government subsidies.
Intel (NASDAQ:INTC) has surged nearly 20% over the past week to levels of about $24.50 a share. So what's been fueling the gains?
The Trump administration is said to be considering using funds from the Chips Act to take a stake in Intel, according to sources. Bloomberg's Joe Deaux joins Caroline Hyde and Ed Ludlow on “Bloomberg Tech.
Patrick Moorhead, Moor Insights and Strategy CEO, joins 'Power Lunch' to discuss Moorhead's reaction to the latest news regarding Intel, the government's ties to the company and much more.
Intel might be going into business with an unlikely partner: the U.S. government.
A potential deal with the Trump administration is shaping up to be a saving grace for Intel (INTC), which saw its shares climb Friday while other semiconductor stocks slid.
As Intel's stock heads for its biggest weekly gain in 50 years, analysts wonder if the U.S. government can really help the company fix its technological issues.