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SoftBankinvests $2 billion in Intel. Considering purchase of INTC stock now?

Intel's shares surge following Softbank's announcement of a $2 billion investment in the embattled semiconductor company. UBS predicts that INTC shares could reach up to $40 in value.

Tech Giant SoftBank Pledges $2 Billion to Intel Investment. Question Arises: Is It the Right Time...
Tech Giant SoftBank Pledges $2 Billion to Intel Investment. Question Arises: Is It the Right Time to Purchase INTC Shares?

SoftBankinvests $2 billion in Intel. Considering purchase of INTC stock now?

Intel's stock outlook remains optimistic following a $2 billion investment by SoftBank and potential U.S. government involvement. As of late August 2025, Intel's shares are trading around $24.85, with forecasts predicting significant growth over the next few years.

The investment by SoftBank is seen as a vote of confidence in Intel's new management and turnaround strategy. This investment, along with the potential U.S. government involvement, could boost Intel's financial stability in the near term and further stabilize its market position.

In the past month, Intel's stock has been a lucrative investment, up roughly 35% from the start of August. Analysts forecast the stock could reach approximately $48-53 by 2028, suggesting strong long-term growth potential.

Intel's recent cost reductions, strong financial discipline, and ambitious AI strategies have attracted favorable analyst attention and potential collaborations, such as with Ericsson in networking infrastructure. The company's ability to manage legal challenges and maintain transparency has also improved investor confidence.

The investment by SoftBank could help Intel's foundry business to accelerate its push into next-gen chip technologies. UBS analysts' best-case forecast indicates a potential for another 50% upside in INTC shares from current levels. However, the mean target for Intel stock is approximately $23, indicating a potential downside of more than 10% from current levels.

The consensus rating on Intel stock is "Hold". UBS predicts that Intel shares could soar to $40 in a bull-case scenario where Intel's chip manufacturing business is valued similarly to global peers.

It's important to note that all information and data in this article are solely for informational purposes. Investors should conduct their own due diligence and consult with financial advisors before making investment decisions.

The investment lifts investor sentiment for Intel, which may translate to significant further upside for Intel shares over time. The investment reiterates Intel's importance in revitalizing U.S. semiconductor manufacturing. UBS analysts believe that a federal stake could be a major tailwind for Intel stock, and they could potentially revise their estimates for INTC shares following Softbank and the U.S. government news in the days ahead.

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[1] Source: CNBC [2] Source: Yahoo Finance [3] Source: MarketWatch

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