Shares in the chip maker rose following news of SoftBank’s planned investment and a possible stake for the U.S. government.

Treasury Secretary Scott Bessent said the White House wouldn't try to flex its power with a stake in Intel.

SoftBank will invest $2 billion into Intel as the struggling chipmaker pulls back on spending and lays off thousands of workers. In an announcement, SoftBank CEO Masayoshi Son said the investment aligns with the firm’s belief that “advanced semiconductor manufacturing and supply will further expand in the United States.”

After months of turbulence, Intel Corp. bulls are finally being rewarded for their patience. But the stock’s sudden rebound comes with a worrying side-effect: a valuation so high its most recent precedent is from the dot-com era more than two decades ago.

Lutnick just laughed it off, indignantly pointing out that “we were just giving away the money” under the previous terms of the CHIPS Act. But the legality of any equity stake would likely be challenged by both Intel shareholders and competitors in the industry, according to the Times.

Shining a Spotlight on Intel Intel (NASDAQ:INTC) has emerged from the shadows of its semiconductor rivals, capturing the attention of investors and policymakers alike. After years of struggling to keep pace with competitors like Nvidia (NASDAQ:NVDA) and Taiwan Semiconductor Manufacturing (NYSE:TSM),

U.S. Treasury Secretary Scott Bessent on Tuesday said any U.S. investment in Intel would be aimed at helping the troubled chipmaker stabilize, as Commerce Secretary Howard Lutnick said the government wanted equity stakes in exchange for its support of semiconductor manufacturers.

The stock rose more than 6% trading after Japan's SoftBank (JP:9984) agreed to invest $2 billion in the st