Why Intel Stock Is Soaring Today

Key Points

• SoftBank will invest $2 billion at $23 per share, becoming Intel’s fifth-largest holder with a roughly 2% stake.

• This backing helps validate Intel's turnaround efforts, yet sales weakness and lack of profits persist.

• The U.S. government believes Intel's domestic manufacturing is critical to U.S. security.

• 10 stocks we like better than Intel ›

Shares of Intel (NASDAQ: INTC) are spiking Tuesday, up 7.4% as of 11:38 a.m. ET. The jump comes as the S&P 500 (SNPINDEX: ^GSPC) lost 0.3% and the Nasdaq Composite (NASDAQINDEX: ^IXIC) lost 1.1%.

The struggling chipmaker's stock is flying higher after it was revealed that the Japanese conglomerate SoftBank is taking a major stake in Intel.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

SoftBank's $2 billion stake sends Intel stock soaring

The companies announced this morning that SoftBank would take a $2 billion equity stake in Intel at a price of $23 per share. This makes SoftBank the fifth-largest shareholder, owning about 2% of the chipmaker.

The investment from SoftBank is a major validation and vote of support for Intel, which has struggled in years past to compete with rivals Nvidia and AMD in the all-important artificial intelligence (AI) chip market. SoftBank is a major backer of all things AI and has significant investments in important players like OpenAI.

Government interest is a wild card for Intel

The investment comes just a week after Intel's CEO, Lip-Bu Tan, met with President Trump after he had called for the CEO's resignation due to Tan's alleged ties to the Chinese government. The administration places a high value on Intel's strategic importance, given it's one of the few American chipmakers with significant domestic manufacturing capabilities.

Image source: Getty Images.

While the SoftBank investment and its implicit vote of confidence are meaningful, Intel still faces significant challenges in its path to relevance in AI. The company's sales have continued to sag, and it's been some time since it turned a profit.

The company has been undergoing a significant transformation that included a drastic reduction in its fabrication capacity, but Tan may reverse course, given pressure from Trump and this investment from SoftBank. While things are rocky, Intel could be a good pick over the long term. Expect some turbulence, however, in the short and medium term.

Should you invest $1,000 in Intel right now?

Before you buy stock in Intel, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Intel wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $671,466!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,115,633!*

Now, it’s worth noting Stock Advisor’s total average return is 1,076% — a market-crushing outperformance compared to 184% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of August 18, 2025

Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Intel, and Nvidia. The Motley Fool recommends the following options: short August 2025 $24 calls on Intel. The Motley Fool has a disclosure policy.