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Intel shares entered Tuesday up 18% this year
Intel (INTC) shares are surging 6% in premarket trading Tuesday on news that Japan’s SoftBank Group is making a $2 billion investment in the struggling U.S. chipmaker.
SoftBank will pay $23 for each Intel share, a slight discount to Monday’s closing price of $23.66, the companies announced.
“This strategic investment reflects our belief that advanced semiconductor manufacturing and supply will further expand in the United States, with Intel playing a critical role,” said SoftBank CEO Masayoshi Son, who last December announced plans for the firm to invest around $100 billion in the U.S. with President-elect Donald Trump.
Last week, Bloomberg reported that the Trump administration was in talks to take a stake in the chipmaker, and yesterday reported the U.S. would buy around 10% of Intel by converting some or all of the company’s CHIPS and Science Act grants into equity. Such a stake would make the U.S. the embattled chipmaker’s biggest shareholder, the report said. The White House didn’t immediately respond to a request for comment.
Last month, Intel’s second-quarter sales topped analysts’ estimates but the company unexpectedly swung to an adjusted loss and CEO Lip-Bu Tan announced layoffs in a memo to employees. Still, Intel shares entered Tuesday up 18% this year.
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