SoftBank Makes Significant Investment in Intel
Masayoshi Son has undertaken one of his most substantial single-stock investments in recent history, as SoftBank Group directs a remarkable 67% of its disclosed $18 billion U.S. equity portfolio toward Intel.
This investment, valued at an impressive $12.1 billion, now stands as the fund’s largest U.S. holding by a considerable margin, indicative of Son’s firm belief in Intel’s potential resurgence in the artificial intelligence sector.
SoftBank revealed this position in a 13F filing dated August 14, disclosing ownership of 86,956,522 Intel shares, estimated at $12.14 billion as of June 30.
The subsequent largest holdings include Symbotic, representing 9.85% or $1.79 billion, and T-Mobile US at 9.23% or $1.68 billion.
Previously, SoftBank had committed to a strategic investment of $2 billion in Intel, expected to close in the third quarter of 2025, alongside a concurrent $5 billion equity infusion from Nvidia.
This latest filing underscores Son’s amplified investment in Intel, reflecting an optimistic outlook on the company’s trajectory.
Intel’s Momentum Bolsters Investment Thesis
Intel reported a robust revenue of $16.128 billion in the second quarter of fiscal year 2026, marking a remarkable 25.4% year-over-year increase and the company’s most vigorous top-line growth in over 15 years.
The non-GAAP earnings per share reached $0.42, nearly double the consensus forecast of $0.22. Revenue from Intel’s Data Center and AI division surged by 59% year-over-year, totaling $6.262 billion.
Chief Executive Lip-Bu Tan characterized this achievement as “the strongest revenue growth in more than 15 years,” noting that the company has surpassed financial expectations for the seventh consecutive quarter.
Demonstrating his confidence, Tan purchased 105,263 Intel shares at $95 each through a family trust, amounting to a $10 million open-market transaction, coinciding with Intel’s $20 billion secondary offering.
Tan’s personal stake in Intel now surpasses 1.3 million shares.
Intel Secures $20 Billion in Equity Raise
The $20 billion equity raise was valued at $95 per share for 210,526,315 newly issued shares, increased from an initial proposition of $15 billion.
The funds will underwrite Intel’s capital expenditure plans, with Chief Financial Officer David Zinsner indicating expenditures would exceed $20 billion in 2026, with projections for 2027 to be even higher.
Management has emphasized a prudent approach, stating they will not allocate capital prior to securing customer commitments, rendering the planned investment reflective of a robust order book.
SoftBank’s Investment Faces Headwinds
Between June 30 and August 14, Intel’s stock price plummeted by 26.59%, declining from $139.63 to $102.50.
This downturn resulted in SoftBank’s position turning negative based on mark-to-market valuations by the time the filing was made public.
Notwithstanding this decline, Intel’s stock has appreciated over 325% in the past year. The stock experienced a surge following President Donald Trump’s announcement on social media on June 18 about Apple’s purported agreement to collaborate with Intel on domestic chip design and manufacturing.
However, it remains critical to note that neither entity has formalized or finalized this arrangement, with analysts’ estimations suggesting high-volume production of Apple chips may still be two to three years away.
Source link: M.economictimes.com.
