Intel Buys Back Apollo's Stake for $14.2 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 01 2026
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Should l Buy INTC?
Source: NASDAQ.COM
- Stock Surge: Intel's shares closed at $48.03 on Wednesday, up 8.84%, primarily driven by the announcement of a $14.2 billion buyback of Apollo Global Management's 49% stake in its Fab 34 plant in Ireland, thereby restoring full control and enhancing its manufacturing base for AI-related products.
- Volume Spike: Trading volume reached 128.9 million shares, nearly 22% above the three-month average of 106.1 million shares, indicating strong investor interest and confidence in Intel's future AI investment prospects.
- Historical Performance: Since its IPO in 1980, Intel's stock has appreciated by 14,655%, reflecting its long-term competitiveness and market position in the semiconductor industry, even as the market reassesses AI chip demand.
- Market Reaction: Investors are generally optimistic about the deal, believing it will provide Intel with a longer runway for growth in AI investments, although the analyst team noted that Intel was not included in the current list of top investment stocks, suggesting a cautious outlook on its future performance.
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Analyst Views on INTC
Wall Street analysts forecast INTC stock price to fall
29 Analyst Rating
5 Buy
19 Hold
5 Sell
Hold
Current: 58.950
Low
20.00
Averages
39.30
High
52.00
Current: 58.950
Low
20.00
Averages
39.30
High
52.00
About INTC
Intel Corporation is a global designer and manufacturer of semiconductor products. The Company operates through three segments: Intel Products, Intel Foundry, and All Other. Its Intel Products segment includes Client Computing Group (CCG), Data Center and AI (DCAI), Network and Edge (NEX). The CCG is bringing together the operating system, system architecture, hardware, and software application integration to enable PC experiences. DCAI delivers workload-optimized solutions to cloud service providers and enterprises, along with silicon devices for communications service providers, network and edge, and HPC customers. NEX helps networks and edge compute systems from fixed-function hardware to general-purpose compute, acceleration, and networking devices running cloud native software on programmable hardware. The Intel Foundry segment comprises technology development, manufacturing and foundry services. All Other segments include Altera, Mobileye, Other.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

Investment Round: A funding round led by NFX and TPG Capital has taken place, involving participation from Korea Investment Partners, Deep33, and Matias Family.
Participants: The investment round includes notable firms and partners, indicating a strong interest in the venture from various stakeholders.
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- Strong AI Investment Demand: Anthropic's annual revenue is approximately $30 billion, while OpenAI approaches $25 billion, indicating accelerated enterprise and platform-level AI adoption, with Meta paying about $1.6 billion annually for Anthropic access, underscoring AI's critical role in its product ecosystem.
- Significant Capital Expenditure Increase: Meta has raised its capital expenditure guidance to $115–$135 billion, making it one of the largest capex programs globally, reflecting a sustained commitment to AI and infrastructure investment, which is expected to drive future growth for the company.
- Semiconductor Sector Recovery: Nvidia and Broadcom's stock prices are rebounding as geopolitical pressures ease, with Broadcom trading at a forward P/E of 31x and projected EPS growth of 49%, while Nvidia is at 23x forward P/E with profit growth expected at 39%, demonstrating ongoing market confidence in computing demand.
- Rising Energy Demand: The significant power requirements of large AI data centers are driving investments in renewable energy and distributed generation, with Bloom Energy expected to see a 60% sales growth over the next two years, highlighting its leadership in next-generation energy infrastructure technology.
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- Data Center Construction Delays: The uncertainty caused by the war may force delays in AI data center builds, although demand for AI in the region remains, future investments are expected to focus more on local markets.
- Helium Shortage Impact: Disruptions in helium supply could constrain chip production; while helium is not a major cost driver, its shortage may have ripple effects across various industries, impacting overall production capabilities.
- Rising Energy Prices: The global economy has yet to fully feel the impact of rising energy prices, which may suppress consumer demand for tech products, and data center operators could face increased spending due to higher energy costs.
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- Analyst Rating: Intel (INTC) currently holds an average rating of hold according to analysts, indicating a cautious market sentiment regarding its future performance and reflecting investor reservations about the company's short-term growth potential.
- Price Target: The average price target set by analysts for Intel is $52.25, a level that may influence investor buying decisions and suggests a relatively stable market expectation for its stock price.
- Market Sentiment: Despite the hold rating, there remains significant market interest in Intel, with investors likely waiting for clearer growth signals or financial performance to decide on adjusting their positions.
- Investment Strategy: In the current market environment, the hold rating may lead investors to adopt a wait-and-see approach, further observing Intel's performance in technological innovation and market competition to assess its long-term investment value.
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- Market Rebound: On Thursday, the S&P 500 rose by 0.62%, reaching a one-month high, reflecting investor optimism regarding the US-Iran ceasefire, despite initial losses due to concerns, indicating cautious optimism about future developments.
- Weak Economic Data: Initial US jobless claims rose to 219,000, exceeding expectations of 210,000, indicating a weakening labor market, while personal income unexpectedly fell by 0.1%, which could impact consumer spending and overall economic growth, increasing market focus on Fed policy.
- Oil Price Volatility: Crude oil prices surged over 3% on Thursday due to the blockade of the Strait of Hormuz, which not only heightened inflation expectations but also could influence Fed monetary policy, leading to increased speculation about future rate hikes.
- Divergent Tech Stock Performance: Marvell Technology surged over 4% following an upgrade from Barclays, while software stocks like Palantir and ServiceNow fell over 7% due to concerns over AI disruption, reflecting differing market views on the tech sector's outlook and potentially affecting investor allocation strategies.
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