Intel (INTC) Is Up 9.1% After SoftBank's $2 Billion Investment and New Foundry Partnership Talks

• In late September 2025, Intel completed a private placement, raising US$2.00 billion from SoftBank and issuing 86.96 million common shares, as part of a wave of significant investments and partnership discussions, including reported talks with AMD about foundry services and a high-profile collaboration with NVIDIA.
• These developments highlight a growing industry and government push to reinforce Intel's foundry and AI ambitions, bolstering its balance sheet and signaling renewed support for its manufacturing turnaround efforts amid ongoing competitive pressures.
• We'll examine how the SoftBank investment and high-profile foundry partnerships may influence Intel's evolving investment narrative and future prospects.

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Intel Investment Narrative Recap

For shareholders, owning Intel stock is largely about believing in the company’s ability to execute a turnaround in AI and foundry services, supported by high-profile capital infusions and government backing. The recent US$2.0 billion investment from SoftBank bolsters Intel’s financial position and signals confidence, but the most important short-term catalyst remains operational progress in its foundry segment, particularly in attracting marquee clients. The most significant risk continues to be Intel’s ability to transform its AI strategy at the pace of competitors; recent news does not materially shift this balance for near-term results.

Among recent announcements, Intel’s collaboration with Trust Stamp to deliver AI-powered, privacy-first identity verification showcases ongoing momentum in leveraging its Xeon Scalable Processors for real-world applications. This aligns directly with Intel’s focus on building credibility in emerging AI workloads and supporting its ambition to grow parts of the business that could serve as near-term growth engines.

In contrast, investors should be mindful that despite the recent optimism, one key risk still stands out in particular...

Read the full narrative on Intel (it's free!)

Intel's outlook projects $58.1 billion in revenue and $5.2 billion in earnings by 2028. This assumes a 3.1% annual revenue growth rate and a $25.7 billion increase in earnings from the current -$20.5 billion.

Uncover how Intel's forecasts yield a $25.18 fair value, a 31% downside to its current price.

Exploring Other Perspectives

While consensus forecasts see turnaround potential, some of the most pessimistic analysts recently projected Intel’s revenue could actually shrink 0.5% annually and 2028 earnings might only reach about US$2.2 billion. These outlooks reflect the belief that headwinds, especially from manufacturing constraints and slow cost reductions, could drag on results even if recent investments spark short-term enthusiasm. Investor opinions vary greatly, so it’s worth considering how new developments could reshape these views.

Explore 48 other fair value estimates on Intel - why the stock might be worth over 2x more than the current price!

Build Your Own Intel Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Intel research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Intel research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Intel's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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