SoftBank Group’s shares dropped sharply on Tuesday, ending a nine-day winning streak after announcing a $2 billion investment in Intel Corporation.
SoftBank agreed to purchase Intel shares at $23 each, slightly below Intel’s closing price of $23.66 the previous day. This move gives SoftBank roughly a 2% stake in the American chipmaker.
Intel’s stock surged over 5% in after-hours trading following the news, but SoftBank’s shares fell as much as 5.69% during normal trading.
Intel CEO Lip-Bu Tan called the investment a strong vote of confidence in the company’s turnaround, while SoftBank chairman Masayoshi Son highlighted the importance of advanced semiconductor manufacturing in the U.S. Analysts see this as a positive sign for Intel’s recovery within the next year to 18 months.
Intel has faced challenges competing in the AI chip market and is restructuring under CEO Tan, including workforce reductions. It aims to regain ground against rivals like Nvidia.
Asia-Pacific markets traded mixed on Tuesday amid Wall Street losses and ahead of the Federal Reserve’s key meeting. Japan’s Nikkei 225 slipped 0.12%, South Korea’s Kospi dropped 0.31%, while China’s CSI 300 rose 0.13%. Australia’s S&P/ASX 200 fell 0.74%.
U.S. stock futures were flat early Tuesday as the market awaited retail earnings and Federal Reserve speeches. On Monday, the Dow Jones dropped slightly by 34.30 points to 44,911.82, the S&P 500 dipped 0.01%, and the Nasdaq rose 0.03%. Shares of Meta Platforms and Microsoft declined, weighing on the broader market.
Investors also watched talks at the White House between U.S. President Donald Trump, Ukraine’s President Volodymyr Zelenskyy, and European leaders aimed at ending the Russia-Ukraine conflict.