Intel is getting a $2 billion capital injection from SoftBank Group in a major vote of confidence for the troubled U.S. chipmaker in the middle of a turnaround.

Jefferies Asia’s Atul Goyal argues SoftBank’s tiny Intel stake limits exposure, while potential U.S. government backing could turn Masa’s Intel bet into an advantage. For Intel, still struggling with its turnaround,

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

SoftBank Group Corp. shares fell for a second day, following a sharp selloff in US technology shares and as concerns over its investment in Intel Corp. continued to weigh on the company.

SoftBank recently revealed plans to acquire a $2 billion (£1.5 billion) stake in Intel, driving the chipmaker’s shares up. However, Softbank’s stock dipped 5% on the same day. On the other hand, Intel’s stock rose by over 5% after-hours trading in New York on Monday.

SoftBank announced on Tuesday a $2 billion investment in Intel that will add to the Japanese tech investor's ambitious bet on artificial intelligence and the chip industry.

Japanese investment giant SoftBank has announced a substantial US$2bn investment in Intel, the major American semiconductor company. This move marks a significant vote of confidence for Intel, which has faced scrutiny, including pressure from U.S. political figures calling for the resignation of its CEO.

Earlier this week, Foxconn Chairman Young Liu confirmed that SoftBank has acquired its Ohio plant to build new AI servers in the US. The transaction was