Apollo offers to invest $5 billion in Intel following chipmaker’s 60% market cap loss this year

Intel has taken a major hit this year, losing nearly 60% of its market value. Now, it seems the struggling chipmaker is on the verge of getting a lifeline from private equity. According to Bloomberg, Apollo Global Management has offered to invest up to $5 billion in Intel, a move that signals a strong vote of confidence in Intel’s turnaround strategy.

This news comes on the heels of reports that Qualcomm is considering acquiring Intel. Earlier this year, Apollo acquired a 49% stake in Intel’s facility in Ireland for $11 billion, and now they’re showing interest in making another big investment.

Intel, once a giant in the chip industry, is weighing Apollo’s offer. Talks are still in the early stages, and nothing has been finalized yet. Intel hasn’t commented on the report, and Apollo has also stayed silent.

“The alternative asset manager has indicated in recent days it would be willing to make an equity-like investment of as much as $5 billion in Intel, said one of the people, who asked not to be identified discussing confidential information,” Bloomberg reported.

Earlier this year, Apollo bought nearly half of Intel’s Irish manufacturing site in an $11 billion deal. Now, the investment firm is looking to pour more money into Intel at a time when the company’s value has taken a serious hit.

Meanwhile, Qualcomm has reportedly been in touch with Intel, exploring the possibility of an acquisition. Qualcomm’s CEO, Cristiano Amon, is said to be directly involved in the discussions. But like the Apollo deal, these talks are in their infancy, and nothing is set in stone.

It’s been a rough year for Intel. In April, the company reported a jaw-dropping 133% drop in earnings per share for the first quarter, the worst in its history. Revenue also fell by 36%, down to $11.7 billion.

A month later, Intel announced a major wave of layoffs as part of a cost-cutting plan. So far, 17,500 employees have been let go, with more expected by the end of the year. Intel’s shares have fallen below $20, a low not seen since 1982.

Once the go-to name for microprocessors, Intel’s dominance has slipped in recent years, losing ground to competitors. Founded in 1968, the company made its name powering everything from PCs to servers and even branched out into areas like GPUs and network products. But as it faces mounting pressure, Intel’s path forward remains uncertain.