Topline
Shares of Intel rose more than 7% as trading opened Tuesday, following an announcement that SoftBank would invest $2 billion in the company and a report the Trump administration was holding talks about becoming the chipmaker’s largest shareholder.
The company’s latest success comes after Trump briefly called for CEO Lip-Bu Tan to resign.
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Key Facts
Intel’s stock rose more than 7% shortly after trading opened Tuesday, pacing what would be a reversal of the chipmaker’s shares falling by 3.6% on Monday after Bloomberg reported the Trump administration was in discussion to take a 10% stake in the company.
An early trading shift for Intel follows an announcement late Monday by SoftBank it would invest $2 billion in the beleaguered chipmaker, noting the investment was part of both firms “investing in advanced technology and semiconductor innovation” in the U.S.
A $2 billion investment represents a roughly 2% stake, ranking SoftBank the fifth-largest shareholder of Intel, while a reported 10% stake by the U.S. would be worth about $10.4 billion as of Monday’s share price.
White House spokesperson Kush Desai declined to comment on a possible investment in a statement to Bloomberg, though Desai noted no deal is official unless announced by the Trump administration.
Big Number
23.6%. That’s how much Intel’s stock increased by last week, the best weekly performance by the company since January 2000.
Key Background
Intel’s stock has spiked in recent weeks as the company now appears to have the support of the Trump administration. Earlier this month, President Donald Trump called Intel CEO Lip-Bu Tan “highly CONFLICTED” and urged Tan to resign “immediately.” Trump’s threat came after Sen. Tom Cotton, R-Ark., questioned Intel’s board over his alleged ties to Chinese firms and a criminal case involving Cadence Design, where Tan served as CEO before being hired at Intel in March. Cotton cited concerns about the “security and integrity” of Intel’s operations and its “potential impact” on national security. Intel disputed Cotton’s claims, arguing the company was deeply committed to U.S. national security “and the integrity of our role in the U.S. defense ecosystem.” Tan visited the White House last week, after which Trump heralded Tan as “an amazing story.”
