KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
SoftBank Group is making a bold bet on Intel, investing US$2 billion (RM8.45 billion) to become one of the US chipmaker’s top 10 shareholders.
The Japanese giant will pay US$23 per share through a primary stock issuance, giving it just under a 2% stake in Intel. This deal will make SoftBank Intel’s sixth-largest investor, according to LSEG data.
Why This Matters
Intel’s lifeline: The investment comes at a critical time for Intel, which posted a massive US$18.8 billion loss in 2024—its first annual loss since 1986.
Struggles in AI chips: Unlike Nvidia, Intel has little presence in the booming AI chip market.
New leadership: Intel’s new CEO, Lip-Bu Tan, has scaled back risky chip foundry ambitions and is focused on turning the company around.
Market Reaction
Intel shares jumped 5.6% in after-hours trading.
SoftBank stock dropped over 5% following the announcement.
SoftBank’s Position
Will not seek a board seat.
No plans to buy Intel’s chips.
Sees Intel as strategically important because it’s the only US-based company pushing advanced chip R&D, wafer production, and packaging on home soil.
Bigger Picture
This move is part of SoftBank’s 2025 investment spree:
US$30 billion into OpenAI (ChatGPT’s maker).
Leading the US$500 billion Stargate project—a mega data center plan in the US.
Partnering with Foxconn to build data-center equipment in Ohio.
Meanwhile, reports suggest the US government may buy a 10% stake in Intel. This comes amid tensions between Intel’s CEO and President Trump, who recently called for Tan’s resignation over ties to Chinese firms.
SoftBank, however, stressed its decision is not linked to US political pressure.
Comments
Post a Comment