Intel Corporation (INTC) experienced a 2.38% surge in its pre-market trading on Monday, driven by reports of a potential multi-billion dollar investment from Apollo Global Management Inc. (APO) and a takeover interest from Qualcomm Inc. (QCOM).
According to Bloomberg, Apollo, a prominent U.S.-based asset management firm, is considering an equity-like investment of up to $5 billion in Intel. This news comes at a time when Intel, once the world’s leading chipmaker, has seen its shares plummet by nearly 60% since the beginning of the year. At the time of writing, Intel was trading at $22.36, a notable increase from its Friday closing price of $21.84.
Despite Intel’s current vulnerability, the company is reportedly reviewing Apollo’s proposal. However, the talks are still in their initial stages and have not been finalized. Both the size of the potential investment and the likelihood of a deal are subject to change. Earlier this year, Apollo announced a separate $11 billion deal to acquire a 49% equity stake in a joint venture connected to Intel’s new manufacturing facility in Ireland.
Meanwhile, Qualcomm has also expressed interest in acquiring Intel, with CEO Cristiano Amon personally leading discussions for a potential takeover. Apollo’s stock was up by 0.23%, while Qualcomm’s stock experienced a slight decline of 0.25% during Monday’s pre-market trading.
Intel’s stock has been on a volatile ride this year. The company reported a significant decrease in its second-quarter earnings, resulting in a drop in its shares. Apollo’s $5 billion investment offer has sparked a new wave of interest in the company, potentially marking a turning point for Intel’s fortunes. Qualcomm’s potential acquisition of Intel, amidst the latter’s 60% stock decline, has also generated significant industry buzz.
The potential investments and acquisition interest from Apollo and Qualcomm highlight the ongoing shifts in the technology industry and the changing dynamics within the semiconductor market. It remains to be seen how these developments will ultimately impact Intel’s future and its position within the industry.
