Intel rises on report of $11 billion Apollo investment in new chip plant

By Steve Gelsi

Apollo is front-runner on deal after it outshines KKR and Stonepeak, the WSJ report says

Intel Corp's stock rose 2.5% on Monday after The Wall Street Journal reported it was in talks with Apollo Global Management Inc. to line up $11 billion to construct a new chip plant in Ireland.

The deal with Intel (INTC) could be finalized within weeks after Apollo outpaced rival firms such as Stonepeak and KKR & Co Inc. (KKR) for the deal, the report said.

Apollo's High Grade Capital Solutions unit is leading the deal for Apollo.

The new plant is part of Intel's plan to meet increased chip demand.

The potential deal with Apollo comes after Brookfield Asset Management Ltd. (BAM) inked a $30 billion deal with Intel in 2022 for a chip-making plant in Chandler, Ariz. Intel was to have a controlling stake in the Arizona plant.

Prior to Monday's trades, Intel's stock was down 40.6% in 2024, compared to an 8.9% gain by the Nasdaq (NDAQ).

Also read: Intel's stock drops after Biden administration bans some sales to China's Huawei

-Steve Gelsi

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05-13-24 1434ET

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