Intel Stock INTC Swings Wildly Above $25 After SoftBank Deal Outweighs 10% Govt Stake
Intel’s stock has been on a rollercoaster, caught between government investment speculation, market resistance, and a deal with SoftBank...
Quick overview
- Intel's stock experienced significant volatility due to speculation about U.S. government investment and a strategic deal with SoftBank.
- The U.S. government is considering converting part of Intel's funding into equity, potentially giving it a 10% stake worth around $10.5 billion.
- A $2 billion investment from SoftBank has reignited optimism, pushing Intel's shares back up after a recent decline.
- Despite the positive developments, concerns remain about political risks and whether Intel can maintain its momentum in a competitive market.
Live INTC Chart
[[INTC-graph]]
Intel’s stock has been on a rollercoaster, caught between government investment speculation, market resistance, and a strategic deal with SoftBank that could redefine its near-term trajectory.
A Surge Fueled by U.S. Government Backing
The week began with news that the U.S. government is weighing a strategic equity investment in Intel as part of efforts to bolster domestic chip production under the $10.9 billion Chips and Science Act. Early reports suggested Washington might convert a portion of Intel’s allocated funds into equity, with a possible 10% federal stake worth roughly $10.5 billion at current valuations.
This development triggered one of Intel’s sharpest rallies since April, with the stock gaining more than 23% in a single week, marking its best performance since February. However, momentum faltered by Friday as shares ran into stiff resistance. The inability to break higher set the stage for a pullback, with Intel reversing course and accelerating lower into Monday’s session.
Market Reversal and After-Hours Bounce (Green line is after hours price)
By the closing bell on Monday, INTC shares settled at $23.66, slipping further to below $23.50 in after-hours trading—representing an 8% drop from Friday’s peak. The reversal initially signaled waning investor conviction despite the excitement around government involvement.
Yet, the narrative shifted quickly once again. After markets closed, reports of a $2 billion strategic investment by SoftBank reignited optimism. Under the agreement, SoftBank will purchase Intel common shares at $23 each, reaffirming its commitment to semiconductor innovation and next-generation technology development in the U.S. The deal sent shares surging again in late trading, climbing back toward $25 and flipping the stock positive for the day.
Strategic Partnership with SoftBank
Intel CEO Lip-Bu Tan welcomed the SoftBank investment, highlighting the company’s long-standing collaboration with SoftBank founder Masayoshi Son. Tan emphasized that both groups share a common vision for U.S. technological leadership and manufacturing strength.
“Masa and I have worked closely together for many years. His trust in Intel reflects our shared dedication to pushing the boundaries of innovation and strengthening America’s position in global technology,” Tan remarked.
The strategic tie-up underscores Intel’s push to secure influential partners at a time when global semiconductor competition is intensifying and geopolitical tensions continue to influence corporate strategies.
Political Backdrop and Trump’s Role
The investment speculation comes against the backdrop of political drama in Washington. Reports surfaced that President Donald Trump’s administration is considering a direct government equity stake in Intel, a move that would mark an extraordinary intervention in the private sector.
This follows weeks of turbulence between Trump and Intel’s leadership. The president publicly clashed with CEO Tan, even calling for his resignation over alleged ties to Chinese technology firms. Yet, the administration’s willingness to consider a stake suggests recognition of Intel’s critical role in safeguarding U.S. supply chains and semiconductor dominance.
Outlook: Can Intel Sustain Its Momentum?
Intel’s August rebound marks a striking contrast with its struggles in July, when political noise, weak earnings, and shaken investor confidence weighed heavily on the stock. The combination of potential U.S. government backing and SoftBank’s confirmed $2 billion investment now offers a firmer foundation for a turnaround.
Still, questions remain. Can Intel break out of the resistance levels that capped its rally last week? Will political risk, particularly tensions between its leadership and Washington, continue to cloud sentiment? Or will the twin pillars of federal and private-sector investment finally give Intel the credibility it needs to stage a lasting recovery?
For now, the chipmaker finds itself at the intersection of politics, innovation, and global competition—making it one of the most closely watched stocks in the semiconductor sector.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save