INTC Stock Gains As Intel Strikes A Massive $14.2B Deal To Fuel Its AI Ambitions

• Intel said it will issue new debt worth about $6.5 billion to fund part of the deal, while using cash on hand for the remainder.
• It expects the transaction to be accretive to its earnings and to improve its credit profile in 2027 and beyond.
• Intel sold a 49% stake to Apollo and its affiliates in 2024 for $11.2 billion, enabling the company to use the cash for new production technology at this facility and other U.S. facilities.

Intel Corp. (INTC) shares gained more than 9% in Wednesday’s opening trade after the company announced a massive $14.2 billion deal with Apollo Global Management Inc. (APO) to fuel its AI ambitions.

Intel stated that it has entered into a definitive agreement with Apollo to repurchase the 49% equity interest in the joint venture related to Intel’s Fab 34 in Ireland.

Retail sentiment on Stocktwits around Intel trended in the ‘neutral’ territory at the time of writing. INTC was among the top three trending tickers on the platform.

Apollo shares were down about 0.5% at the time of writing.

Intel To Issue New Debt Worth $6.5B

Intel said it will issue new debt worth about $6.5 billion to fund part of the deal, while using cash on hand for the remainder. It expects the transaction to be accretive to its earnings and to improve its credit profile in 2027 and beyond.

Intel sold a 49% stake to Apollo and its affiliates in 2024 for $11.2 billion, enabling the company to use the cash for new production technology at this facility and other U.S. facilities.

Intel Has A Stronger Balance Sheet Now, Says CFO David Zinsner

Intel’s Chief Financial Officer, David Zinsner, stated that the company now has a stronger balance sheet, improved financial discipline, and an evolved business strategy. The chipmaker reported its fourth-quarter (Q4) results in January 2026, ending the fiscal year 2025 with $37.4 billion in cash and short-term investments.

Intel stated that Fab 34 is a high-volume semiconductor fabrication facility for products utilizing the Intel 4 and Intel 3 process technologies, including Core Ultra and Xeon 6 processors.

The company said it continues to invest significantly in its Ireland campus to expand its manufacturing capacity and deliver products for next-generation AI-enabled systems.

INTC stock is up 30% year-to-date, while APO stock is down 23%. The S&P 500 ETF Trust (SPY) is up 17% over the past 12 months, while the Invesco QQQ Trust ETF (QQQ) is up 23%.

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