Intel stock up as $11B Apollo deal nears completion: WSJ

Shares of Intel (INTC) are moving higher as The Wall Street Journal reports that a deal between Intel and Apollo Global Management (APO) is nearing its conclusion. The deal concerns a $11 billion investment toward constructing a chip factory in Ireland for the chip giant.

Yahoo Finance Anchors Seana Smith and Jared Blikre break down the latest developments for these companies and how the deal will likely be finalized.

For more expert insight and the latest market action, click here to watch this full episode of Catalysts.

Note: Apollo Global Management is a majority owner of Yahoo, Yahoo Finance's parent company.

This post was written by Nicholas Jacobino

Video transcript

Another mover here this time within the tech space.

And that is Intel, the that stock on the move uh on the heels of a report that we're getting out from the Wall Street Journal.

Now, within that report, the company nearing an $11 billion deal for chip factory in Ireland with Apollo.

Now this of course, we wanna know Apollo is Yahoo Finance's parent company.

When when you take a look at shares of Intel that's up 3.5% and Jared, this would be a move here, at least in, in terms of Intel, Intel has been looking to expand its production line up obviously.

So this would help them ultimately maybe better compete with some of their larger rivals out there.

We take a look at Taiwan semis also Samsung Electronics.

But I think the timeline of this is what is in question here and then also that price tie.

So clearly, the funding from Apollo will be welcome news here from investors.

These are just some eye watering numbers and this is just not, this is not in isolation.

There are lots of these deals going on just quick, a quick history here because the race is on for foundries, four building chips, building chips domestically here in the US in Europe as opposed to China.

So Intel announced in December, it was investing $25 billion in Israel.

And this is after getting 3.2 billion in incentives from the Israeli government in June, Germany investing about 30 billion.

That's $32 billion in semiconductor operations.

And then this Apollo deal now is tracking previous con uh transaction with Brookfield infrastructure partners.

That was a $15 billion deal.

So you add all these up, we're talking about hundreds of billions of dollars.

Uh not only for intel but other foundries around the world.

And that's because a lot of these chip companies don't make their own chips.

NVIDIA doesn't make their own chips.

And so this is about who's going to actually manufacture uh those semiconductors.