Only one working day after The Wall Street Journal reported that Qualcomm was interested in buying Intel (NASDAQ:INTC)Today there is news of another interested party who is willing to pay billions for a share of the chip manufacturer.

According to a report by Bloomberg Apollo Global Managementone of the world’s largest private equity firms, has offered to acquire a multibillion-dollar stake in Intel.

Following the news, Intel shares rose 3.4% at 12:44 p.m. ET.

Intel gets more interested parties

According to Bloomberg, Apollo Global is willing to invest up to $5 billion in Intel, but the ongoing talks are confidential.

It is unclear whether such an investment will materialize, but it is the latest evidence that Intel’s low price and turnaround potential are attractive to many buyers and investors.

Today’s gains may also have been triggered by news on Friday that Qualcomm had approached Intel about a possible acquisition. That news came out just before the market closed. A merger between the two technology giants would likely face significant regulatory scrutiny.

Is Intel too stingy to ignore it?

With Intel’s stock price plummeting following a disastrous second-quarter report that included the cancellation of its dividend and a massive restructuring, it’s no big surprise that sharks like Qualcomm and Apollo are circling the waters.

It is unclear at this point whether Intel would consider a takeover offer or another “strategic option,” such as a multibillion-dollar partnership with a private equity firm like Apollo, which could include a call for seats on the board of directors.

A divestment plan would certainly boost the stock price, but CEO Pat Gelsinger seems determined to turn things around, and the company still faces many challenges.

Still, the attention Intel is receiving is a good sign for investors. The stock seems cheap given its potential, but the company has a long history of missed opportunities and disappointing results.

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Jeremy Bowman does not own any stocks mentioned. The Motley Fool owns and recommends Qualcomm. The Motley Fool recommends Intel and recommends the following options: short November 2024 $24 calls on Intel. The Motley Fool has a disclosure policy.

Intel just got more good news. Is the turnaround real? was originally published by The Motley Fool