Intel Corp (NASDAQ:INTC, ETR:INL) rose 3% on a report that private equity giant Apollo Asset Management has agreed to make a $5 billion (£3.8 billion) investment into struggling Silicon Valley stalwart.
If the weekend report from Bloomberg is confirmed, the supersized investment would equate to more than 5% of Intel’s outstanding share capital.
The report follows news that chipmaker Qualcomm has approached Intel with a potential takeover offer for an undisclosed amount.
Intel’s valuation has been slashed in half this year amid mounting worries over its financial performance and lagging technological relevance.
Despite generating a buzz with last week's AI chip partnership with Amazon Web Services, Intel has struggled to grow its chipmaking business, leading to tumbling profits and substantial workforce reductions.
Central to Intel’s woes is its delay in adopting ASML's extreme ultraviolet (EUV) technology at a time when its competitors TSMC and Samsung have ramped up investment.
Intel and Apollo already have a working relationship after the private equity group acquired a 49% stake in Intel’s Ireland-based foundry earlier this year.
** Update: Adds share price **