Intel Reacquires Manufacturing Stake from Apollo
Intel Corporation (NASDAQ: INTC) announced on Wednesday that it will repurchase a 49% stake in its Fab 34 facility in Ireland from Apollo Global Management (NYSE: APO) for $14.2 billion, following an initial sale of the stake in 2024 for $11.2 billion. The company plans to fund the acquisition through its cash reserves and approximately $6.5 billion in new debt, with expectations of increasing its earnings per share by 2027.
Intel’s Fab 34 site is integral to its strategy for artificial intelligence (AI), producing chips for AI-related applications in personal computers and data centers. With rising demand for central processing units (CPUs), driven by shifts towards AI inference, Intel aims to capitalize on this emerging growth. The deal comes as competition in the CPU market heats up with key players like Nvidia and AMD making significant advances.
