Intel Stock Climbs on Apple Investment Talks Report
The chipmaker has reportedly approached its former partner for a strategic investment to bolster its foundry business and fund its ongoing turnaround.
Intel (INTC) shares climbed more than 2% in active trading following reports that the company has approached rival Apple (AAPL) to explore a potential strategic investment. The move is a significant development in Intel's ambitious and costly effort to reinvent itself as a leading-edge chip manufacturer for other companies.
The discussions, which are said to be in early stages, could see Apple join a growing list of strategic backers injecting capital into the legacy semiconductor giant. This news comes as Intel navigates a critical turnaround, aiming to reclaim technological leadership and build out its foundry services to compete with global leaders like Taiwan Semiconductor Manufacturing Co. (TSMC), which currently manufactures Apple's in-house silicon.
Intel's outreach to Apple is part of a broader strategy to fund its capital-intensive expansion. The company recently and has also received backing from the U.S. government, which is championing the reshoring of critical chip production. However, the path has been challenging, with Intel's foundry division reporting significant financial losses as it ramps up production.
An investment from Apple would be particularly notable given the two companies' history. Apple famously transitioned its Mac computers away from Intel processors starting in 2020, opting for its own custom-designed chips. While a return to Intel-powered Macs is considered highly unlikely, a strategic investment could serve Apple's interests. It would offer a path to and support the development of a major U.S.-based manufacturing partner, aligning with geopolitical goals to reduce reliance on East Asia for advanced semiconductors.
, with trading volume surging to 1.4 times the daily average, signaling market interest in the potential alignment. While the talks may not result in a deal, they underscore Intel's determination to secure the necessary capital and partnerships to execute one of the most ambitious turnarounds in the technology sector's recent history. The outcome of these discussions will be closely watched as a bellwether for the future of the American semiconductor industry.