Intel in talks with other large investors for equity boost at discount, sources say

Intel is exploring the possibility of securing additional equity investments from major investors at a discounted rate, according to sources familiar with the situation. This news comes as Intel's stock price fell more than 6% on Tuesday, following a previous surge linked to a $2 billion capital infusion from SoftBank and discussions about potential government involvement from the Trump administration. Commerce Secretary Howard Lutnick emphasized that the U.S. government expects to receive an equity stake in Intel in return for funding provided through the CHIPS Act. However, insider reports indicate that the chip manufacturing giant is now seeking funding options beyond SoftBank. CNBC's David Faber noted the company's urgent need for capital to meet market demands, stating, "They need money to build whatever it is that the customers may actually, ultimately want." Intel is currently striving for a turnaround after experiencing several years of declining sales and diminishing market presence. The company has faced challenges in leveraging the artificial intelligence surge in advanced semiconductor technology and has made substantial investments in its manufacturing capabilities, which have yet to yield significant clients. In a bid to revitalize its leadership, Intel appointed Lip-Bu Tan as its new CEO in March, succeeding Pat Gelsinger, who was ousted in December. Tensions arose when President Donald Trump called for Tan's resignation, labeling him as "highly CONFLICTED." However, relations appeared to improve after Tan's visit to the White House to discuss his qualifications and vision for Intel.