INTC announced a $ 2B equity investment from SoftBank at $23/share and an $8.9B U.S. government investment, representing a ~9.9% stake at ~$20.47/share. The government contribution combines new capital and an advance on prior CHIPS Act ($5.7B) and Secure Enclave ($3.2B) grants. The U.S. will also receive a 5% warrant at $20/share, exercisable only if INTC's stake in Intel Foundry falls below 51% in five years. Analysts say this makes a majority IF spin-off/sale unlikely in the next five years, though a large minority stake could still be possible. BofA expects INTC net leverage to improve 0.3–0.4x in 2025–26 to 1.5x and 1.2x, but FCF estimates drop $ 3B in 2025 and $ 2B in 2026 due to grant accounting changes. Tech and AI related stocks like AMD, NVDA, CRM, MAAS, SNOW may get impacted.
Recent INTC stock investments strengthen the company's balance sheet but make a short-term sale of its foundry business
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Posted by Zestyclose-Salad-290
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>The government contribution combines new capital and an advance on prior CHIPS Act ($5.7B) and Secure Enclave ($3.2B) grants.
Funny man’s math.
Total contribution ($8.9B) = CHIPS advance ($5.7B) + Secure Enclave advance ($3.2B) + New capital (x)
Someone tell me what x is.