Shares in the chip maker rose following news of SoftBank’s planned investment and a possible stake for the U.S. government.

U.S. Commerce Secretary Howard Lutnick on Tuesday confirmed the U.S. government is vying for a 10% stake in Silicon Valley pioneer Intel in an unusual deal that would deepen the Trump administration’s financial ties with major computer chip manufacturers and punctuate a dramatic about-face from the president’s recent push to oust the company’s CEO.

SoftBank Group Corp.’s $2 billion investment in Intel Corp. could be the catalyst the struggling chip maker needs to turn the corner, some analysts believe.

Intel scores $2B investment from Japan's SoftBank, shares jump. Sinclair reportedly offers to merge broadcast TV operations with Tegna. Crocs partnering with NFL for team-branded clogs.

The move is part of SoftBank's investing initiatives in the US, which also includes commitments towards AI computing. Intel, which has lagged behind in the chip race after being the erstwhile market leader,

The potential deal would convert the CHIPS ACT grants into equity, but wouldn't come with governance rights in Intel, Lutnick said.