Intel shares see a sudden 5% spike in extended trading; Here’s why

Shares of Intel Corp. surged as much as 5.5% in extended trading in New York on Monday, August 18, after SoftBank Group Corp., agreed to buy stake worth $2 billion.The investment is said to be part of a push by the companies to “deepen their commitment” to advanced US technology and chip innovation.

SoftBank will be paying $23 per share towards Intel’s common stock, according to a joint statement by both companies, accessed by Bloomberg. The agreement is subject to customary closing conditions.

The move is part of SoftBank’s investing initiatives in the US, which also includes commitments towards AI computing. Intel, which has lagged behind in the chip race after being the erstwhile market leader, is also aiming to play catch-up with its peers.“For more than 50 years, Intel has been a trusted leader in innovation,” SoftBank Chairman and Chief Executive Officer Masayoshi Son said in the statement. “This strategic investment reflects our belief that advanced semiconductor manufacturing and supply will further expand in the United States, with Intel playing a critical role.”

Shares of Intel jumped 5.5% in extended trading to $24.95, after the announcement. The stock has gained 17% so far in 2025, underperforming its other big tech peers.

(With Inputs From Agencies.)