Intel stock was down 3.9% after Bloomberg reported that the Trump administration could convert Chips Act grants into a 10% equity stake in Intel.

The government’s plan, which would convert grants made under the US Chips and Science Act into equity, is under consideration just as SoftBank Group Corp. announced a surprise bet on Intel’s revival, agreeing to acquire a $2 billion stake in the company.

Intel Corporation sees a steep rally; speculation over U.S. stake and SoftBank investment fuels optimism, but can it overcome challenges? Click for our INTC update.

Intel shares jumped after SoftBank said it would put $2 billion into the struggling chipmaker amid reports the U.S. government is considering a stake.

Intel shares fell 3.7% on Monday, after reports that Trump administration officials are talking about taking a 10% stake in the chip maker. The move would be part of a government effort to save the embattled company and boost semiconductor manufacturing in the U.

Intel Corp. shares jumped in after-hours trading Monday after the chipmaker announced a $2 billion investment by Japan’s SoftBank Group Corp.

The shares of the chip giant lost 60% of their value last year as it could not gain traction in the artificial intelligence (AI) market, which is dominated by Nvidia

Shares of Intel (NASDAQ:INTC) were on track to snap six days of gains, as the stock fell more than 2.7% to $23.92 in Monday afternoon trade.  The chipmaker gained more than 23% in the last six trading sessions.