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~ SoftBank is buying roughly 2% of Intel’s outstanding shares in a $2 billion investment in the chipmaker.
~ Intel shares lost 60% of their value last year as the company failed to gain traction in the artificial intelligence market that’s dominated by Nvidia.
~ The investment is a vote of confidence in Intel, which has spent heavily to stand up a manufacturing business but hasn’t yet secured a significant customer.
~ SoftBank is buying roughly 2% of Intel’s outstanding shares in a $2 billion investment in the chipmaker.
~ Intel shares lost 60% of their value last year as the company failed to gain traction in the artificial intelligence market that’s dominated by Nvidia.
~ The investment is a vote of confidence in Intel, which has spent heavily to stand up a manufacturing business but hasn’t yet secured a significant customer.
IMO, this cash investment is exactly what Intel urgently needs and is a step in the right direction. Intel must improve its financial position as soon as possible before it gets out of control.
IMO, this cash investment is exactly what Intel urgently needs and is a step in the right direction. Intel must improve its financial position as soon as possible before it gets out of control.
As the press release notes, this is purchase of ~2% of Intel common stock and not a direct investment. It won't directly impact any financials (e.g., capital expenditures, profits) just yet.
That being said, it signals Softbank's willingness to follow up with financing or debt packages (similar to what they did with WeWork, where they readily threw $15B+ at). At one point, Softbank owned ~5% of Nvidia (until 2019) and still owns ~90% of ARM. Exciting news indeed!
