SoftBank is investing $2 billion in Intel at $23 per share, signaling confidence in an artificial intelligence (AI) turnaround. Will it be what Intel needs?

Intel ( INTC) stock climbed more than 5% in pre-market trading Tuesday following the announcement that SoftBank Group ( SFTBY) will take a $2 billion stake in the ailing chip giant.

Intel Corp (NASDAQ:INTC) shares are trading higher Tuesday after it was announced that Softbank will invest $2 billion in the company.

In a just-breaking development, Bloomberg reports the Trump administration may take a 10% stake in Intel ( INTC -3.71%) -- which perversely is down 3.9% on the news, at least as of 12:35 p.m. ET. Probably not the reaction that either the Trump administration or Intel itself anticipated.

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),

Trump's flip-flopping on Intel highlights the impact of politics on investor sentiment. New leadership, government investment and hedge fund bets suggest a major turnaround in store for Intel.

Intel stock was down 3.9% after Bloomberg reported that the Trump administration could convert Chips Act grants into a 10% equity stake in Intel.

Trump administration eyes 10% Intel stake by converting federal grants, raising hopes of revival for the struggling U.S. chipmaker.

President Trump's tariffs continue to affect global markets and the economy. Follow for live updates on stocks, bonds and other markets, including the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite.

A $2 billion investment represents a roughly 2% stake, ranking SoftBank the fifth-largest shareholder of Intel, while a reported 10% stake by the U.S. would be worth about $10.4 billion as of Monday’s share price.