US stock futures flounder amid tech weakness, Fed caution
Investing.com -- Intel (NASDAQ:INTC) is in discussions with large investors to secure an equity infusion at a discounted price, according to sources who spoke with CNBC’s David Faber.
This development follows Japanese conglomerate SoftBank (TYO:9984)’s Monday announcement of a $2 billion capital injection into the struggling chipmaker. The Trump administration is simultaneously considering having the U.S. government take an equity stake in Intel.
Sources indicated that Intel is now looking beyond SoftBank for additional equity support. Faber noted on CNBC’s "Squawk on the Street" that Intel "needs money to build whatever it is that the customers may actually, ultimately want," adding that converting CHIPS Act money into equity would be dilutive rather than helpful.
Intel shares dropped more than 5% on Tuesday, following an earlier rally sparked by the SoftBank investment announcement and reports of potential Trump administration involvement with the company.
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