Intel investors have another risk to consider after SoftBank revealed losses tied to its 87 million shares in the chipmaker.
The Japanese investment giant has already raised $7.4 billion against its entire stake, raising questions about whether those shares could eventually return to the market.
According to SoftBank’s November 10 disclosure, the company entered prepaid forward contracts in August. These arrangements allow investors to receive cash upfront in exchange for settling the contracts later, potentially by delivering shares.
The contracts cover roughly 1.6% of Intel’s outstanding shares.
However, SoftBank has not disclosed a timetable for selling or delivering those shares. The full 87 million should therefore not be treated as confirmed future selling pressure.
Why Does This Matter for Intel Stock?
SoftBank originally paid $2 billion for its Intel stake in 2025. By September 30, its value had surged to $10.5 billion.
But Intel’s subsequent decline changed the picture.
The shares fell from $120.23 in September to $58.13 on November 10, cutting the stake’s market value to approximately $5.1 billion.
That is now below the $7.4 billion SoftBank received through its financing deal, although it does not automatically trigger a forced sale.
SoftBank also reported approximately $2 billion in derivative losses and $1.7 billion in Intel valuation losses during the September quarter.
Meanwhile, Intel has struggled through the broader technology sell-off. Shares plunged approximately 30% on October 30 after the company forecast weaker fourth-quarter revenue and warned about continued PC demand weakness.
Intel recovered around 8% during Wednesday’s trading as stronger AI infrastructure sentiment lifted semiconductor stocks.
Does Wall Street Still Expect an Intel Stock Recovery?
Despite the sell-off, Wall Street remains cautiously optimistic about Intel’s recovery.
According to S&P Global analyst estimates, 49 analysts have an average 12-month price target of $91.12, with a consensus Hold rating.
However, several banks recently lowered their expectations. Citi reduced its target from $130 to $100, while JPMorgan cut its forecast to $80.
Intel’s own outlook also remains uncertain.
CFO David Zinsner warned that the company expects the PC slowdown to continue “at least through the first half of next year.”
SoftBank’s financing arrangement does not directly change Intel’s long-term business prospects. Investors should watch for further disclosures about the contracts, particularly settlement dates and potential share deliveries.
For a lasting recovery, Intel must also demonstrate stronger demand and improve its cash flow. A potential 87 million-share overhang could make an already volatile recovery more difficult.
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