Key findings
- Intel reportedly receives a billion-dollar investment from Apollo Global Management.
- Intel's value fell 53 percent, but the investment could reverse the downward spiral.
- Qualcomm's reported bid to acquire Intel shows that urgent action must be taken against the competition.
Intel has been in a tough spot over the past few weeks. As the company tries to recover from a huge stock loss, the CEO has revealed his plan to get the company back on its feet. At the same time, Qualcomm has reportedly offered Intel a deal to acquire the company, striking while the iron is hot. Fortunately, Intel seems to have pulled out of its slump, as the company is now reportedly receiving a multi-billion dollar investment.
Intel reportedly receives major investment from Apollo Global Management
As reported by Bloomberg Apollo Global Management has offered Intel billions of dollars in investment, citing “people familiar with the matter.” If true, the companies haven't quite decided how much Apollo Global Management will invest, but the sources say it could be “as much as $5 billion.” Since the alleged deal is still in the discussion phase, that number could change drastically or even be taken off the table if the deal doesn't go through.
Bloomberg also points out how much Intel's value has fallen in recent months. In January 2024, Intel was valued at $198 billion, but by September that value had dropped 53% to $93 billion. Therefore, an additional $5 billion cash injection could definitely help reverse the downward spiral.
Intel needs to act quickly as its competitors have not suffered the same fate. Over the same period as above, Qualcomm has gained 24%, from $152 billion to $188 billion, and Nvidia has outperformed the entire market by going from $1.2 trillion to $2.8 trillion – a 133% increase. This is likely why Qualcomm made its offer, as it was worth about twice as much as Intel at the time it was approached.
Is that enough to save Intel from ruin? Only time will tell. However, it seems that the CEO's new strategy is resonating with investors, and we could see a slow but steady rise in Intel's value as confidence grows.