Intel Corp. (NASDAQ:INTC) stock rallied on Wednesday after the company reportedly reached out to Apple, Inc. (NASDAQ:AAPL) to explore an investment.
- INTC stock climbed after the report. See the details here.
Let’s Make A Deal
The two companies have also discussed opportunities to deepen their collaboration, though discussions are still preliminary and might not result in a deal, according to Reuters.
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Neither Intel nor Apple has commented on the matter. Following the news, Intel's shares rose 6%.
Intel CEO Lip-Bu Tan has been actively seeking partners as part of efforts to revive the company, which has lagged behind rivals like Nvidia Corp. (NASDAQ:NVDA) and AMD in the fast-growing AI sector.
Last week, Nvidia disclosed a $5 billion investment in Intel for about a 4% stake. Both companies are based in Santa Clara, California.
SoftBank has also invested in Intel, and the company has approached other firms to gauge interest in additional investments and partnerships.
Even the U.S. government took a significant equity position in Intel through a White House-brokered deal.
‘Hope Is Not a Strategy’
Last week, a group of four ex-Intel board members urged the company to become a private company in response to its declining competitiveness in the global semiconductor market.
They argued that Intel’s current corporate structure is outdated, making it hard to compete with rivals like TSMC.
The former directors suggested separating Intel's design and manufacturing operations to help revive its position, noting that shedding quarterly earnings pressures would allow for more ambitious restructuring.
“Hope is not a strategy,” the group wrote in Fortune magazine.
INTC Price Action: Intel shares ended Wednesday’s session up 6.41% at $31.22, according to data from Benzinga Pro.
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