Intel Could Get up to $5 Billion Investment From Apollo

[Nomad76]

Intel could get a substantial multibillion-dollar investment from Apollo Global Management Inc., according to a recent report by Bloomberg which relies on inside information from people familiar with the matter. It is said that Apollo is willing to invest up to $5 billion in Intel, and it is worth noting that this came up just after rumors about Qualcomm's intentions for a friendly takeover of Intel emerged last week. Intel and Apollo representatives have declined to comment thus far, however, it is said that Intel executives have been weighing Apollo's proposal.

Apollo is not a newcomer to the chipmaking industry; in 2023, the New York-based company made a $900 million investment in Western Digital buying convertible preferred stock. As for Intel and Apollo, they are no strangers to each other. Just this past June, Intel agreed to sell a stake in a joint venture that controls Intel's Fab 34 plant in Ireland to Apollo for $11 billion. While rumors come and go, one thing is for sure: Intel's short-term future relies on the success of its upcoming products like Arrow Lake desktop architecture to be released on October 24, and its foundry business division.



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[Daven]

“While rumors come and go, one thing is for sure: Intel's future relies on the success of its new Arrow Lake desktop architecture to be released on October 24.”

Well that came out of nowhere. Intel’s future depends on a lot of things but desktop CPUs are not one of those things. Why is this sentence in the article? Is it because this is a DIY review site that only reviews CPUs that are socketable for the client?

 

[Nomad76]

“While rumors come and go, one thing is for sure: Intel's future relies on the success of its new Arrow Lake desktop architecture to be released on October 24.”

Well that came out of nowhere. Intel’s future depends on a lot of things but desktop CPUs are not one of those things. Why is this sentence in the article? Is it because this is a DIY review site that only reviews CPUs that are socketable for the client?

I am just wondering why Intel shares dropped after they acknowledged Raptor Lake issues (and huge financial losses)... and what will happen if Arrow Lake does not meet expectations. True, Intel's future (in the medium to long term) depends on a lot of things, but in the short term, it is Arrow Lake that will make their path easier or harder.

 

[phanbuey]

I am just wondering why Intel shares dropped after they acknowledged Raptor Lake issues (and huge financial losses)... and what will happen if Arrow Lake does not meet expectations. True, Intel's future (in the medium to long term) depends on a lot of things, but in the short term, it is Arrow Lake that will make their path easier or harder.

They didn't drop because of that... they dropped because they had earnings and the Foundry business massively missed expectations.

The Raptor Lake story surfaced way before this and the stock was actually going up.

Success in the consumer device and client computing market is definitely not nothing though, and arrow lake will be an huge part of the comeback.

 

[bonehead123]

1st the Fed, now they are sucking down more billions from anywhere they can...hopefully they will put it to good use and NOT blow it on silly shit like exec bonuses, beach houses, and lear jets....

Here's a thought: use it to boost low ranking employee's pay & benefits..... & maybe increase productivity & morale a tad ?

nah, we can't have something sensible like that, now can we

 

[R0H1T]

“While rumors come and go, one thing is for sure: Intel's future relies on the success of its new Arrow Lake desktop architecture to be released on October 24.”

I would say "fabs" more than the chips.

 

[dragontamer5788]

The good news is that Intel is cheap from a stock price perspective. So it makes sense from an Apollo perspective for trying to get stock onto this company on the cheap.

The bad news is that the problem is Intel's culture, and a buyout from Apollo fixes none of the culture. Intel has plenty of money today, I posit that Intel doesn't need any money for the near future. I'm not sure how Intel fixes its culture or how it starts innovating again, but it probably doesn't begin with Apollo coming in and micromanaging Intel.

Probably not Qualcomm either for that matter.

 

[Daven]

I am just wondering why Intel shares dropped after they acknowledged Raptor Lake issues (and huge financial losses)... and what will happen if Arrow Lake does not meet expectations. True, Intel's future (in the medium to long term) depends on a lot of things, but in the short term, it is Arrow Lake that will make their path easier or harder.

Intel stock is down because its data center segment is dropping while AMD, Nvidia and others see increases. The logical conclusion is that Intel is not winning any AI chip based revenue.

Everything is about AI and server hardware that feeds AI. The foundry business as some here have pointed out is also important.

Desktop chips make up only 25% of client CPUs with the rest going to laptop CPUs. Looking at recent Intel earnings that means less than $2B out of $12B is desktop CPU revenue. Intel’s largest money maker is laptop CPUs which make up almost 50% of its earnings. But even that is just the status quo and not showing any growth.

 

[thesmokingman]

People weren't buying the takeover rumor huh?

 

[Neo_Morpheus]

Too big to fail.....

Clearly they can continue sucking and money will continue flowing in.

 

[mechtech]

1st the Fed, now they are sucking down more billions from anywhere they can...hopefully they will put it to good use and NOT blow it on silly shit like exec bonuses, beach houses, and lear jets....

Here's a thought: use it to boost low ranking employee's pay & benefits..... & maybe increase productivity a tad ?

nah, we can't have something sensible like that, now can we

Ya cap execs at 1 mill total and combined remuneration and dump their previous dollars into fab R&D and bring them up to TSMC levels.....................

 

[Readlight]

That's more than some county whole money.