In a significant move indicating confidence in Intel Corp.'s turnaround strategy, Apollo Global Management Inc. has offered to make a potentially multibillion-dollar investment in the chipmaker. Sources familiar with the matter revealed that Apollo proposed an equity-like investment of up to $5 billion, which Intel executives are currently considering. The investment would bolster Intel's ongoing efforts, led by CEO Pat Gelsinger, to revamp its operations with new products, technology, and customer base.

San Diego-based Qualcomm Inc. has also entered the picture with a friendly takeover proposal for Intel, possibly leading to a major M&A deal. This development comes amidst Intel's recent struggles, highlighted by disappointing earnings reports that have impacted the company's market value. Despite challenges, Intel's partnership with Apollo has already seen the latter acquiring a stake in a joint venture controlling an Ireland-based plant for $11 billion in June, injecting additional funding for Intel's factory expansion plans.

While Apollo's expertise spans various investment strategies, including insurance, buyouts, and credit, the firm has a history in distressed investing. Furthermore, their venture into the chipmaking sector is not entirely unprecedented, demonstrated by a previous $900 million investment in Western Digital Corp. Apollo's potential investment in Intel signifies a positive vote of confidence, offering support as Intel navigates its transformative journey under Gelsinger's leadership. Both Apollo and Intel have refrained from commenting on the speculations to maintain confidentiality.