Nasdaq 100: Intel Rallies on SoftBank Bet—Forecast Eyes Breakout Above $27.55

SoftBank’s $2B Investment Reignites Interest in Intel Stock

Intel shares have regained investor attention following a $2 billion equity investment from SoftBank, signaling a renewed vote of confidence in the chipmaker’s turnaround plan. The deal, priced at $23 per share, makes SoftBank Intel’s sixth-largest shareholder and marks a rare public bet by Masayoshi Son on a traditional semiconductor name. Traders are viewing this as a key validation point, especially after Intel’s prolonged underperformance.

SoftBank’s stake, representing just under 2% of Intel’s shares, is purely financial—there’s no board representation, and no commitments on chip purchases. Yet, the investment suggests a belief that Intel is positioned to play a central role in U.S.-based semiconductor manufacturing. It also comes at a time when Intel is trying to recover from an $18.8 billion loss and sharpen its competitive stance against AMD, Nvidia, and TSMC.

Federal Backing and Strategic Leadership Add Tailwinds

Intel’s recovery narrative is gaining momentum not just from SoftBank, but also from potential government support. Reports of Washington considering a 10% equity stake underscore Intel’s strategic importance to national tech infrastructure. Combined with new CEO Lip-Bu Tan—formerly on SoftBank’s board—Intel now appears better positioned to access capital, political support, and key industry relationships.

This backing is crucial as Intel tries to rebuild its foundry ambitions and claw back lost market share. The company’s dual role as both designer and manufacturer gives it a rare position in the U.S. chip ecosystem, offering traders a long-term angle that extends beyond quarterly earnings noise.

Technical Setup Signals Bullish Breakout Potential

From a technical standpoint, Intel has established a strong support base on the weekly chart between $17.67 and $27.55. Trading near $24.56, the stock remains above key support levels—the 50-week moving average at $21.80 and the 50% retracement level at $22.61. This setup suggests dips may be limited and well-supported.

A breakout above the February high at $27.55 could trigger momentum-driven buying. If that level clears, the next resistance zones sit around $33.01 (200-week MA) and $34.48, offering up to 40% upside from current prices. Risk remains tied to tech sector volatility, which could drag Intel lower regardless of its internal progress.

Market Outlook: Cautiously Bullish with Sector Risk Caveats

Intel offers a compelling risk-reward profile for traders looking at strategic plays in the semiconductor space. SoftBank’s investment and potential U.S. government backing provide meaningful support for the stock’s recovery narrative. With strong technical footing and identifiable upside targets, Intel looks poised for a push toward $27.55 and beyond.

However, broader tech weakness remains a key risk. Traders should manage exposure accordingly, recognizing that Intel’s rebound, while promising, may be vulnerable to sector-wide selling pressure.

More Information in our Economic Calendar.