What does SoftBank's investment in Intel mean for the semiconductor industry?

SoftBank's $2 billion investment in Intel represents a major vote of confidence in the U.S. chipmaker's turnaround strategy and the broader semiconductor industry. This strategic partnership signals renewed market faith in domestic chip manufacturing and could encourage further investment across the sector, potentially benefiting companies throughout the chip value chain.

What is the chip value chain and why does it matter?

The chip value chain includes all the companies involved in creating semiconductors - from designers who create the blueprints, to foundries that manufacture the chips, to equipment suppliers who provide the machinery, and component manufacturers who create specialised parts. Understanding this chain helps investors see how different companies can benefit from growth in the semiconductor industry.

Why are U.S. chipmakers considered important for national security?

Semiconductors are essential for everything from smartphones to military equipment, making domestic chip production crucial for national security. Recent global supply chain disruptions and geopolitical tensions have highlighted the importance of having strong domestic manufacturing capabilities, which is why there's increased government and private investment in U.S. chipmakers.

What does 'cyclical stocks' mean in relation to semiconductor companies?

Cyclical stocks are companies whose performance tends to follow economic cycles - they do well when the economy is growing and struggle during downturns. Semiconductor companies are typically cyclical because demand for chips fluctuates with technology upgrades, consumer spending, and business investment cycles. This means their stock prices can be more volatile but also offer potential for significant gains during growth periods.

How does AI demand affect semiconductor companies?

Artificial intelligence applications require enormous computing power, which drives demand for advanced semiconductors. AI chips need to process vast amounts of data quickly, creating opportunities for companies that design, manufacture, or support the production of these specialised processors. This surge in AI adoption is creating new growth opportunities across the semiconductor industry.

14 handpicked stocks

U.S. Chipmakers: A Vote Of Confidence

SoftBank's $2 billion investment in Intel provides a major vote of confidence in the chipmaker's revival and its central role in the U.S. semiconductor industry. This strategic partnership highlights a broader investment opportunity in companies poised to benefit from the push for domestic chip manufacturing and AI innovation.

Han Tan | Market Analyst

Published on August 20

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

NVIDIA Corporation

NVDA

Current price

$185.54

Leading AI chip designer benefiting from surging demand for artificial intelligence capabilities.

Intel Corporation

INTC

Current price

$36.59

Major U.S. chipmaker receiving SoftBank's $2 billion vote of confidence in its turnaround strategy.

Taiwan Semiconductor Manufacturing Co.

TSM

Current price

$302.40

World's largest contract chip manufacturer, crucial to global semiconductor supply chains.

ASML Holding NV

ASML

Current price

$1,043.30

Micron Technology Inc.

Current price

$190.96

ASE Industrial Holding Co. Ltd.

ASX

Current price

$11.39

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12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.

If you invested across these assets:

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In 12 months it might be worth:

$1,000.00

+7.46%

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About This Group of Stocks

Our Expert Thinking

SoftBank's massive $2 billion investment in Intel represents a powerful vote of confidence in the U.S. semiconductor industry's revival. This strategic move highlights the growing importance of domestic chip manufacturing, driven by AI innovation and geopolitical considerations that are reshaping the global tech landscape.

What You Need to Know

This group focuses on companies across the entire chip value chain - from designers and foundries to equipment suppliers and component manufacturers. These are cyclical stocks that could benefit from renewed investment in U.S. semiconductor capabilities and the surging demand for AI-related technologies.

Why These Stocks

Each company in this selection plays a crucial role in the semiconductor ecosystem and is positioned to benefit from the industry's revitalisation. These stocks were handpicked by professional analysts based on their potential to capitalise on increased domestic chip production and strategic partnerships like SoftBank's Intel investment.

Group Performance Snapshot

7.46%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 7.46% over the next year.

12 of 14

Stocks Rated Buy by Analysts

12 of 14 assets in this group are rated Buy by professional analysts.

25.8% vs 4%

Group Growth vs Bank interest

This group averaged a 25.8% return last month, beating the typical 4% bank rate.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

🚀

Major Investment Catalyst

SoftBank's $2 billion Intel investment signals renewed confidence in U.S. chipmakers. This kind of strategic backing often sparks broader market interest and could drive momentum across the entire sector.

🏭

Domestic Manufacturing Push

The shift towards strengthening U.S. semiconductor production creates opportunities for companies across the chip value chain. From equipment suppliers to foundries, this trend could benefit multiple players in our selection.

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AI Demand Surge

The artificial intelligence boom is driving unprecedented demand for advanced chips and computing power. Companies positioned in this space could see significant growth as AI applications continue expanding rapidly.

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