Intel Shares Drop 7% Amid Talks With Investors Over Discounted Equity Infusion

Intel shares fell nearly 7% on Wednesday after CNBC reported the chipmaker is in talks with additional large investors for a discounted equity infusion. The decline erased gains from earlier this week, when Intel announced a $2 billion capital injection from SoftBank and reports surfaced that the Trump administration may seek involvement with the company, according to CNBC. Commerce Secretary Howard Lutnick said the U.S. government should receive an equity stake in Intel in exchange for CHIPS Act funds. Sources told CNBC’s David Faber that Intel is instead pursuing additional outside investors, as converting government support into equity would dilute shareholders. The company is struggling to recover from years of declining sales and lagging in the AI semiconductor market, while investing heavily in manufacturing.