Welcome to Yahoo Finance's flagship show, The Morning Brief. I'm Julie Hyman. Let's get to the three things you need to know today.First up, US stock features little change this morning after closing out flat in Monday's trading session. Investors in wait and see mode ahead of the Fed's meeting in Jackson Hole, where traders will search for clues on the central bank's plans for interest rates. Plus, Home Depot out with its earnings results.The world's largest home improvement company posting disappointing s ...

The US government is pursuing a stake in Intel, the US commerce secretary said on Tuesday, confirming reports of discussions between officials and the company that have circulated for the better part of a week. The Trump administration wants to convert funding from the Chips and Science Act, which funds research and manufacturing of semiconductor chips in the US, into equity in the struggling tech company, according to Howard Lutnick. Intel was once a leader in producing computer processors, but is now seen ...

Topline Shares of Intel rose more than 7% as trading opened Tuesday, following an announcement that SoftBank would invest $2 billion in the company and a report the Trump administration was holding talks about becoming the chipmaker's largest shareholder. The company's latest success comes after Trump briefly called for CEO Lip-Bu Tan to resign. Key Background Intel's stock has spiked in recent weeks as the company now appears to have the support of the Trump administration. Earlier this month, President Do ...

Core Viewpoint - Intel's shares rose over 7% following SoftBank's announcement of a $2 billion investment and reports of the Trump administration considering a significant stake in the company [1][2]. Group 1: Investment Details - SoftBank's $2 billion investment represents approximately a 2% stake in Intel, making it the fifth-largest shareholder [2]. - A potential 10% stake by the U.S. government would be valued at about $10.4 billion based on Monday's share price [2]. Group 2: Stock Performance - Intel's stock increased by 23.6% last week, marking the best weekly performance since January 2000 [4]. Group 3: Political Context - Intel's recent stock surge is attributed to perceived support from the Trump administration, despite previous calls for CEO Lip-Bu Tan to resign due to concerns over his ties to Chinese firms [5]. - The White House has not confirmed any official investment discussions, emphasizing that no deal is official unless announced by the Trump administration [3].

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Core Viewpoint - Intel has received a significant investment from SoftBank, which reflects confidence in the company's future in the semiconductor industry and potential government support [1][2]. Group 1: Investment Details - SoftBank will invest $2 billion in Intel by purchasing shares at $23 each, resulting in a 2% ownership stake, making SoftBank the sixth-largest shareholder of Intel [2]. - Following the announcement, Intel's stock price increased by 5.4%, reaching $24.93 per share in after-hours trading [1]. Group 2: Government Involvement - The U.S. government is reportedly considering acquiring a 10% stake in Intel, which would require approximately $10.5 billion, potentially funded by CHIPS Act resources [3]. - Intel has already received about $10.9 billion in grants from the CHIPS Act, indicating strong government support for the company [3]. Group 3: Market Implications - SoftBank's CEO, Masayoshi Son, emphasized the importance of advanced semiconductor manufacturing in the U.S. and Intel's critical role in this sector [2]. - Analysts have mixed views on Intel's future; while some see potential due to government interest and strategic investments, others remain cautious due to the company's recent poor performance [4].

Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of $25.00 [2]. Core Views - Recent strategic initiatives have positioned the company at a critical juncture, with a $2 billion investment from SoftBank and a potential 10% equity stake from the U.S. government providing dual support for its transformation [6][7]. - The company's "national team" strategy is becoming increasingly prominent, serving as a core pillar of U.S. industrial policy, while the SoftBank investment reflects recognition of its strategic value [6][7]. - The success of the company's transformation hinges on its ability to advance its cutting-edge manufacturing processes, with the current phase characterized by a mix of opportunities and risks [6][9]. Financial Projections and Valuation - Revenue projections for the company are as follows: $53.1 billion in 2024, $51.8 billion in 2025, $52.9 billion in 2026, and $55.2 billion in 2027, with respective growth rates of -2.08%, -2.52%, 2.29%, and 4.29% [5][21]. - Adjusted net profit is projected to be -$17.0 billion in 2024, with a recovery to $241.66 million in 2025, $1.44 billion in 2026, and $2.99 billion in 2027 [5][21]. - The target price of $25 corresponds to a 2.0x price-to-sales (PS) ratio for 2026, reflecting a valuation discount compared to industry leaders due to execution uncertainties in advanced manufacturing processes [10][21]. Strategic Support and Challenges - The dual backing from government and SoftBank not only solidifies the company's status as a "national team" but also opens new opportunities in the Arm ecosystem for its foundry business [7][8]. - Political support has been crucial, with recent shifts in government stance indicating a strategic consensus that may reduce future political obstacles for the company [8]. - The execution of advanced manufacturing nodes, particularly the 18A and 14A processes, remains critical for the company's future success, with the need for foundational customers to support these technologies [9][10].

TOM: GOOD MORNING THIS IS BLOOMBERG DAYBREAK: EUROPE I'M TOM MACKENZIE IN LONDON THESE ARE THE STORIES THAT SITE YOUR A 10 -- AGENDA. U.S. AND ALLIES PROMISED SECURITY GUARANTEES FOR UKRAINE. EUROPEAN FUTURES ARE HIGHER WITH GLOBAL STOCKS CLOSE TO RECORD HIGHS AND TREASURIES HOLD STEADY AFTER S&P CONFIRMS ITS LONG-TERM CREDIT RATING, CITING HIGHER TARIFF REVENUES.INTEL SOARS ON A $2 BILLION INVESTMENT BY SOFTBANK AND BLOOMBERG LEARNS THE U.S. IS CONSIDERING A 10% STAKE IN THE CHIPMAKER, WE BRING YOU OUR SCO ...

Core Viewpoint - The U.S. government is considering taking a 10% stake in Intel, potentially making it the largest stakeholder in the company, as part of a broader strategy to support the semiconductor industry and national security [2][5][8]. Group 1: Government Involvement - Intel has been awarded approximately $10.9 billion in grants from the Chips Act, with $7.9 billion allocated for commercial manufacturing and $3 billion for national security projects [1][6]. - The government is contemplating converting some or all of Intel's Chips Act grants into equity, which could reduce the total capital injected into the company [2][8]. - The Trump administration has expressed interest in building government-backed national champions in strategic industries, which aligns with the potential investment in Intel [8]. Group 2: Market Reaction - Following the announcement of potential government investment, Intel's shares rallied nearly 9% on August 14, although they later fell over 3% before rebounding by more than 5% after news of a SoftBank investment [3][12]. - SoftBank's recent $2 billion investment in Intel, representing about 2% of the company, positions it as the fifth-largest shareholder, indicating confidence in Intel's role in U.S. semiconductor manufacturing [11]. Group 3: Competitive Landscape - Intel has struggled to maintain its competitive edge in advanced chip manufacturing and has not yet captured significant customers in the artificial intelligence sector, despite substantial investments [5][9]. - Analysts suggest that while government intervention may be necessary for Intel's recovery, the company's challenges may extend beyond mere funding [9].

Intel stock rallied Monday after the company announced that SoftBank is making a $2 billion investment in the struggling chipmaker. Intel (INTC) jumped more than 5% in extended trading, after shedding nearly 4% in regular trading. Intel Stock: What It Means For Investors "Would Intel get anything else besides money in return for equity?" he said in a client note. "Besides money, Intel needs customers. Is it conceivable that as part of something like this the administration might 'encourage' customers to use ...