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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] Intel Corp.’s share price surged more than 7% on August 19 (local time), fueled by renewed optimism over its business turnaround and fresh investment support.
As of 11:57 a.m. Eastern Time on the New York Stock Exchange, Intel shares were trading at $25.43, up 7.47% from the previous day. The stock opened with gains of over 5% and briefly jumped to $26.53, marking its highest level since February 18 ($27.55).
The rally was driven in part by news that Japan’s SoftBank Group, led by Chairman Masayoshi Son, will invest $2 billion (approximately KRW 2.8 trillion) in Intel. Under the agreement, SoftBank will acquire Intel’s common shares at $23 per share, equivalent to about a 2% stake based on Intel’s market capitalization of roughly $103.6 billion as of August 18.
“Semiconductors are the backbone of every industry, and Intel has been a trusted innovation leader for more than 50 years,” said Son. “With this strategic investment, we look forward to Intel further advancing its critical role in U.S. semiconductor manufacturing and supply.”
Adding to investor optimism, Bloomberg reported on August 18 that the Trump administration is considering acquiring up to a 10% stake in Intel by converting part or all of the $10.9 billion in subsidies granted under the CHIPS Act into equity. If implemented, the U.S. government would become Intel’s largest shareholder.
알파경제 Kim Jisun Reporter(stockmk2020@alphabiz.co.kr)
