Intel seeks investment from Apple to aid its transformation, stock price surges 8%
The two companies also discussed the possibility of strengthening cooperation, but the negotiations are still in the early stages and may not lead to an agreement
Intel seeks to have Apple provide investment as a backup plan to boost its business, with both parties discussing how to collaborate more closely.
On Wednesday, media reports citing informed sources revealed that chip manufacturer Intel has approached Apple for investment as part of its recovery plan. The two companies have also discussed the possibility of strengthening cooperation, but negotiations are still in the early stages and may not result in an agreement.
This potential deal would continue Intel's recent momentum in financing. Nvidia announced last week that it would invest $5 billion in Intel, planning to collaborate in the personal computer and data center chip sectors. Japan's SoftBank Group also announced last month that it would invest $2 billion in Intel.
If an agreement is reached with Apple, it would provide further validation for Intel's transformation efforts. Apple was a long-time customer of Intel but has shifted to self-developed processors over the past five years.
Following the news, Intel's stock price surged 8% to $31.70 during intraday trading, before slightly retreating to close up 6.41%, but continued to rise in after-hours trading.
In August of this year, under the mediation of the Trump administration, the U.S. government acquired about 10% of Intel's shares through a non-traditional deal. Against the backdrop of the White House prioritizing the revival of domestic manufacturing, Intel is seen as a key player in revitalizing U.S. domestic chip production capacity
