Intel Corp’s shares jumped more than 3% on Monday after multiple reports indicated that the semiconductor and PC components maker could be the subject of a $5 billion investment by asset management firm Apollo Global Management.
According to Bloomberg, Apollo approached Intel in recent days with an offer to make an “equity-like investment.” Intel is believed to be seriously considering the offer, although there is no guarantee they will accept it.
Intel and Apollo already have a history of doing business together. Back in June, Apollo acquired a stake in Intel’s venture in charge of a semiconductor factory in Ireland. The value of the stake was believed to be around $11 billion.
News about Apollo’s investment offer came just days after it was reported that rival Qualcomm is considering a takeover bid for Intel. Experts have already shared reservations about the potential deal, considering that it would have a hard time getting clearance from regulators.
Once the most-valued chipmaker in the world, Intel is currently struggling to keep up with the changing market that is focused on artificial intelligence chips. The company’s revenue has been dwindling, and recent attempts to change course haven’t given the desired results.
Intel’s stock closed at $22.56 on Monday after a 3.30% jump. It is currently 52.80% down year-to-date.