Apollo Global Management is reportedly preparing to make a significant multibillion-dollar investment in Intel Corp., signaling strong confidence in the chipmaker’s turnaround strategy under CEO Pat Gelsinger. The proposed equity-like investment, which could reach as much as $5 billion, is still under discussion, with no final agreement in place. This move comes amid Intel’s ambitious plans to restructure, focusing on new technologies, products, and outside customers, despite facing its third consecutive year of declining sales and a more than 50% drop in stock value this year.
Intel recently saw a 3.3% stock rise, closing at $21.84 last week, following announcements of key developments aimed at accelerating its recovery. These include a collaboration with Amazon Web Services on a custom AI semiconductor and plans to restructure its manufacturing division into a wholly owned subsidiary. Intel also put some projects, like new factories in Germany and Poland, on hold.
Apollo’s interest in Intel isn’t entirely new. The two companies previously worked together in June, when Intel sold a stake in a joint venture controlling an Ireland plant to Apollo for $11 billion. Apollo, which has a background in distressed investments and significant experience in the semiconductor space, notably led a $900 million investment in Western Digital last year.
This development comes shortly after Qualcomm expressed interest in a potential takeover of Intel, raising the possibility of one of the largest M&A deals in the semiconductor industry. Neither the Qualcomm nor Apollo deals have been finalized.
Intel’s shares gained around 2% in premarket trading after this news, reflecting market optimism about the company’s turnaround efforts.
Intel recently saw a 3.3% stock rise, closing at $21.84 last week, following announcements of key developments aimed at accelerating its recovery. These include a collaboration with Amazon Web Services on a custom AI semiconductor and plans to restructure its manufacturing division into a wholly owned subsidiary. Intel also put some projects, like new factories in Germany and Poland, on hold.
Apollo’s interest in Intel isn’t entirely new. The two companies previously worked together in June, when Intel sold a stake in a joint venture controlling an Ireland plant to Apollo for $11 billion. Apollo, which has a background in distressed investments and significant experience in the semiconductor space, notably led a $900 million investment in Western Digital last year.
This development comes shortly after Qualcomm expressed interest in a potential takeover of Intel, raising the possibility of one of the largest M&A deals in the semiconductor industry. Neither the Qualcomm nor Apollo deals have been finalized.
Intel’s shares gained around 2% in premarket trading after this news, reflecting market optimism about the company’s turnaround efforts.