Intel Corp (NASDAQ:INTC) shares are trading higher Tuesday after it was announced that Softbank will invest $2 billion in the company.
What To Know: Late Monday, SoftBank and Intel announced that they signed a definitive securities purchase agreement that involves a $2 billion common stock investment from SoftBank as the companies aim to deepen their commitments to investing in the U.S.
“Semiconductors are the foundation of every industry. For more than 50 years, Intel has been a trusted leader in innovation. 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,” said Masayoshi Son, chairman and CEO of SoftBank.
Under terms of the agreement, SoftBank will pay $23 per share of Intel common stock. The company noted that the investment aims to accelerate access to advanced technologies to help expand digital transformation, cloud computing and next-generation infrastructure focused on AI.
The news comes amid reports that the U.S. government is considering acquiring up to a 10% stake in Intel, per Bloomberg.
President Donald Trump recently called on Intel CEO Lip-Bu Tan to resign before changing his tone on Tan following a meeting at the White House last week.
Intel said in a statement that the company was "deeply committed" to working to advance U.S. national and economic security interests and was looking forward to continued engagement with the Trump administration.
How To Buy INTC Stock
By now you're likely curious about how to participate in the market for Intel – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
INTC Price Action: Intel shares were up 5.37% at $24.93 at the time of publication Tuesday, according to Benzinga Pro.
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