Japanese tech investment giant SoftBank Group will invest $2 billion in Intel, which is expected to amount to approximately a 2 percent stake in the U.S. chipmaker, according to a joint announcement from the two companies Monday.

The move, which will involve SoftBank purchasing Intel common stock at $23 per share, was interpreted as a boon to the struggling U.S. company by industry watchers and investors. Intel stock jumped by more than 5 percent in after-hours trading. SoftBank shares dropped by 4 percent during trading Tuesday.

Intel CEO Lip-Bu Tan described the Japanese group’s investment as a vote of confidence in Intel, while SoftBank Group Chairman Masayoshi Son said this “strategic investment reflects our belief that advanced semiconductor manufacturing and supply will further exp

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