Intel stock jumped over 5% in after-hours trading on Monday, August 18,  after Japanese technology giant SoftBank announced a $2 billion investment in the U.S. chipmaker. The deal, struck at $23 per share, comes at a time when Washington is weighing a potential direct stake in Intel to secure America’s semiconductor supply chain.

SoftBank Chairman Masayoshi Son considers this step in business as a long-term bet on U.S. chip manufacturing, calling it a “strategic investment” that reinforces Intel’s role in next-generation semiconductors and AI hardware. The Japanese group, which has already expanded its U.S. presence with plans for AI data centers in Ohio, is signaling confidence in Intel’s turnaround under new CEO Lip-Bu Tan.

Intel has been under pressure in recent years, ceding market leadership to rivals Nvidia, TSMC, and Samsung. Tan has launched aggressive restructuring, cutting jobs, exiting its automotive unit, and slimming down its foundry operations, to sharpen focus on core clients and data center chips.

The investment also comes against a charged political backdrop. Reports last week suggested the Trump administration could convert government grants into a roughly 10% equity stake in Intel, though officials have stopped short of confirming any deal. The move, if approved, would mark a rare government intervention in a major U.S. corporation and signal Washington’s determination to anchor chipmaking capacity domestically.

Trump has publicly pressured Intel’s leadership, even calling for Tan’s resignation over alleged conflicts tied to China. Despite the rhetoric, the White House has held talks with the CEO on Intel’s role in building out a flagship semiconductor hub in Ohio.

Market analysts say the twin tracks of SoftBank’s capital injection and possible U.S. equity participation are reshaping sentiment around Intel. "[The Government's] agenda is clear: Accelerate domestic production, reduce dependence on Asia, and position Intel at the centre of the AI and national security landscape. This is a clear vote of confidence in Intel’s turnaround story,” said Dan Sheehan of Telos Wealth Advisors. “The U.S. agenda is clear: accelerate domestic production, reduce reliance on Asia, and position Intel at the heart of the AI and national security ecosystem.”

For investors, the developments suggest Intel could regain momentum not only as a technology player but also as a strategic asset in America’s industrial policy. With shares trading close to the SoftBank deal price and political support growing, the company may be positioned for a stronger rerating if execution on restructuring and U.S. government backing align.