Apple stock investment in Intel being explored, Bernstein reports

Investing.com - Intel Corp (NASDAQ:INTC), currently trading near its 52-week high of $32.38 and showing strong momentum with a 56% gain year-to-date, is reportedly seeking investment from Apple Inc (NASDAQ:AAPL), according to a Bloomberg report cited by Bernstein analyst Stacy Rasgon on Wednesday.

The discussions are described as early-stage talks that may not yield concrete results, with Intel apparently initiating the approach. The companies have reportedly discussed how they might work more closely together, though neither has officially commented on the matter.

This potential investment follows Intel’s recent success in securing approximately $16 billion from other investors including NVIDIA, SoftBank, and the U.S. government in recent weeks.

Bernstein’s analysis questions the product rationale behind such a deal, noting that Apple has already migrated its entire PC portfolio away from Intel’s x86 chips to its own internally-developed Arm processors. The firm suggests any collaboration might involve datacenter technology or packaging arrangements.

The analyst emphasizes that Intel’s primary challenge remains capability rather than funding, stating that "if Intel can prove they can make parts, in high volume, that meet spec, at good cost, and on time... they will have customers lined up around the block."

In other recent news, Intel has seen a series of noteworthy developments. Seaport Global Securities upgraded Intel’s stock rating from Sell to Neutral, pointing to potential strategic shifts in the company’s fabrication facilities. The firm suggested that Intel’s market capitalization could significantly increase if its product division were valued separately from its foundry business. Similarly, Erste Group upgraded Intel’s stock rating from Sell to Hold, highlighting improvements in the company’s manufacturing technology that have boosted production speed. Bank of America, however, downgraded several of Intel’s long-dated bonds from Overweight to Marketweight after a rally following Nvidia-related news. In a strategic move, Intel announced a partnership with Nvidia to develop custom data center and personal computing products, though Stifel maintained a Hold rating on Intel with a $24.50 price target. These developments indicate a dynamic period for Intel, with various analyst opinions reflecting differing perspectives on the company’s future.

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