SoftBank throws a lifeline to Intel by announcing a $2 billion investment in the company’s shares

After the possible support that Donald Trump’s administration will give to Intel in the form of an entry into its shareholding to try to rescue the company, now in low hours, now comes SoftBank throwing another lifeline to the processor manufacturer.

The conglomerate of Japanese companies, owner of companies such as ARM, has reached an agreement with Intel by which they commit to make an investment of 2,000 million dollars in company shares. Committing to buy the shares at $23 each.

Currently, Intel shares are trading at $23.66 after the close of trading yesterday. Following this announcement, shares have risen 5.45% in the pre-opening.

In the last 5 years, Intel’s stock market value has more than halved

However, in the last 5 years, The value of Intel has fallen at an alarming rate, falling to less than half (-51.9%) of the price they had then. It remains to be seen if this injection from SoftBank, along with the possible investment from the US government, which is considering taking over 10% of the company (after asking its CEO to resign), manages to reverse Intel’s situation.

SoftBank is in the midst of investments focused on the semiconductor and data center sector. Just yesterday we were telling you about the acquisition of vehicle manufacturing facilities from Foxconn, to convert them into one of the largest AI data center development factories in the world.

The company, through its president Masayoshi Son, has assured in a statement that: “Semiconductors are the foundation of every industry. For more than 50 years, Intel has been a trusted leader in innovation. This strategic investment reflects our belief that advanced semiconductor manufacturing and supply will continue to expand in the United States, where Intel will play a critical role.”

For his part, Lip-Bu Tan, current CEO of Intel, stated: “We are very pleased to deepen our relationship with SoftBank, a leader in numerous areas of emerging technology and innovation, who shares our commitment to advancing technology and manufacturing leadership in the United States. Masa and I have collaborated closely for decades and I appreciate the trust he has placed in Intel with this investment.”