- Intel has been reaching out to Apple and TSMC for backing
- Nvidia’s $5 billion investment highlights a pivotal moment in Intel’s turnaround
- Future deals with so-called "Magnificent 7" firms could decide Intel’s recovery path
Intel is on an investment roll at the moment, having secured a deal with the US government in return for a stake in the company, and then most recently, and most importantly, a mega deal with Nvidia.
The GPU giant agreed to invest $5 billion in the American chip maker, which will see Intel design custom x86 chips for it. It proved to be a smart investment for Nvidia which saw its market cap leap $150 billion following the news.
This could be just the beginning for Intel, however, as it courts other investors to find new ways to revive its business.
Hello, is that Apple?
Reports from The Wall Street Journal suggest Intel had already approached Apple and TSMC before sealing the Nvidia deal.
Both firms have long histories with Intel, although each now operates in different directions.
Apple abandoned Intel processors in Macs in 2020 in favor of its in-house silicon, while TSMC not only manufactures for Apple but also competes with Intel in the foundry space.
Bloomberg noted Apple had been engaged in conversations with Intel, although the Mac maker’s focus remains firmly on custom silicon built at TSMC.
TSMC was quick to deny the reports, saying it had not spoken to Intel and had no interest in a joint venture.
Analysts believe Apple’s only interest might lie in Intel’s foundry services, especially given political pressure for greater US-based production.
Apple has recently expanded its domestic investment pledge to $600 billion, which could make siding with Intel strategically appealing.
Intel’s efforts come at a critical time. With two consecutive quarters of flat growth following earlier declines, the company is under pressure to secure new partners.
Its market value has slipped to under $160 billion while Nvidia’s has surged past $4 trillion.
Additional investment could provide stability, but hesitation from potential partners could have the opposite effect and harm momentum.
It seems likely that Intel will continue approaching the rest of the so-called Magnificent 7 - Microsoft, Alphabet, Amazon, Meta, and Tesla - before the year’s end.
While not all may commit, even limited buy-in from Apple or others would send a signal that Intel’s turnaround strategy has backing from powerful industry players.
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