Intel share significantly higher: Softbank is increasing with billions of investment on Intel-rumors about US start

The technology group Softbank buys Intel shares worth two billion US dollars (1.7 billion euros), as the companies announced on Tuesday night. The purchase price is $ 23 per Intel share under the closing price of $ 23.66 the day before. This was well received on the stock exchange. A possible trigger for the price increase was a report by the Bloomberg news agency, according to which the US government negotiates an introduction to Intel about an entry with ten percent.

Shares for subsidies?

According to the report, it is also considered that Intel provides the government’s shares in return for billions of subsidies that had been promised to the company of President Joe Biden during the term of office. According to the U.S. Act at that time, Intel comes to support the chip industry at the commitment of around eight billion dollars. Together with military projects, it would be almost eleven billion dollars – and thus a little more than ten percent of the current stock market value.

Intel shareholders would not be happy about dilution of their shares, wrote analyst Timothy Arcuri from Swiss Bank UBS in an initial assessment. However, there are precedent in the USA for state participation in companies. The latest example is the entry of the US Department of Defense at the rare earth company MP Materials. The US government could urge companies such as Apple, Broadcom and Nvidia more to employ Intel as a manufacturer, said the expert.

Intel once dominated the semiconductor market, but has been fighting problems for years. Especially in the business with chips for artificial intelligence, the graphics card specialist Nvidia conquered a top position. Intel is also under pressure in the traditional business with PC processors and chips for data centers.

The problems are also reflected in the share price, where the AI boom in recent years has basically passed: While the course of the Nvidia shares has been skipped by more than 1,100 percent since the end of 2022 and the US tech value index NASDAQ 100 has more than doubled, a minus of around 10 percent is available for Intel. Since the multi -year high in early 2020, Intel has even been down by around two thirds.

US offensive from Softbank

Softbank, led by billionaire Masayoshi Son, is currently expanding the business in the USA. Together with the Chatgpt developer Openai, the group is involved in the Stargate project, which is supposed to build gigantic data centers for artificial intelligence. Softbank also belongs to the majority on the chip designer ARM, with which technology runs practically all smartphones and tablet computers.

This is how the stock reacts

The entry of the Technology Group Softbank creates a good atmosphere among Intel’s shareholders. According to a message from the night of Tuesday, Japanese buy shares of the troubled chip group worth $ 2 billion. The purchase price is $ 23 per Intel share under the closing price of $ 23.66 the day before. A Börsian spoke of a surprising deal to support a battered US company and at the same time drive their own chip ambitions.

The Intel share in Nasdaq trading on Tuesday will temporarily increase by 6.64 percent to $ 25.23. This would make them again on their percentage of two-digit plus from last Thursday and Friday, as the first rumors about a possible US state stake.

In the meantime, a report on Monday, according to which the United States negotiates about a participation of ten percent, did not prove as a further spa driver: At the beginning of the week, the shares concluded 3.7 percent and thus gave part of the latest profits.

Santa Clara (dpa-Afx) / New York (dpa-Afx)

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