SoftBank Group stake rises to 33.7%: Son Masayoshi

SoftBank Group stake rises to 33.7%: Son Masayoshi

SoftBank Group Corp. has significantly increased its stake in Intel, acquiring nearly 2% of the troubled chipmaker's shares. The investment, valued at $2 billion, was made at $23 per share, signaling a strategic move rather than a prelude to an acquisition [1].

Masayoshi Son, the visionary CEO of SoftBank, has been emphasizing the importance of advanced semiconductor manufacturing. This deal underscores his ambition to dominate the AI ecosystem, with SoftBank already holding substantial stakes in key players like Nvidia and OpenAI [2]. The investment in Intel aligns with SoftBank's broader strategy to control the AI value chain, from infrastructure to hardware [3].

Intel has been facing significant challenges, including scrutiny from the U.S. government and operational pressures. The company has seen its stock price recover slightly following the SoftBank investment, which comes amid ongoing political and operational pressures [3]. The deal is part of SoftBank's broader push to invest in advanced technology and semiconductor innovation in the U.S., as the government seeks to strengthen domestic semiconductor production [3].

SoftBank's investment in Intel is part of a larger strategy to diversify its portfolio and hedge against risks. The company has been investing heavily in AI infrastructure and related technologies, with a particular focus on U.S. semiconductor manufacturing. The investment in Intel aligns with SoftBank's broader goal of controlling the AI value chain, from infrastructure to hardware [2].

However, the deal also comes with risks. Intel's foundry business reported only $53 million in revenue in the first half of 2025, raising doubts about the company's ability to quickly turn around its fortunes [3]. Additionally, SoftBank's aggressive bets on AI infrastructure have drawn scrutiny, with some questioning the sustainability of its strategy amid volatile market conditions and the immense capital required to fuel these ambitions [2].

Looking ahead, SoftBank's AI investments will continue to drive its stock performance. The company's shares have surged more than 60% in recent months, largely fueled by a broader U.S. tech rally centered on AI advancements [2]. However, the true measure of success will hinge on execution, regulatory environments, and whether AI's promised efficiencies materialize before capital reserves dwindle.

References:
[1] https://www.eetasia.com/what-softbanks-investment-in-intel-means/
[2] https://www.webpronews.com/softbank-shares-surge-60-in-2025-on-ai-investments-adding-65b/
[3] https://manufacturingdigital.com/news/softbank-buys-us-2bn-stake-in-intel-amid-its-ceo-controversy