Apollo's asset management significantly bets$Intel (INTC.US)$bullish on its transformation prospects.

According to media reports citing internal sources, Apollo Asset Management plans to carry out a $5 billion private equity investment in Intel, and Intel executives are negotiating the proposal.

Apollo's move coincides with the news last Saturday that Intel is rumored to be sold to Qualcomm. Media views point out that this will be a vote of confidence in Apollo's strategy to turn Intel's losses into profits, or increase the likelihood of its acquisition.$Qualcomm (QCOM.US)$acquisition.

It is reported that in June of this year, Apollo Asset Management has acquired a joint venture for $11 billion, which owns an Intel factory in Ireland.

Insiders added that Apollo's investment plan has not yet been finalized, and the potential size of the investment may change, and negotiations may also fail.

Intel is actively seeking self-rescue.

Due to losses in chip manufacturing business and suppressed profit margins in the PC sector, Intel is entering the most severe downturn in its 56-year history, with revenue shrinking for three consecutive years.

Intel's latest financial report shows that the company's Q2 revenue was $12.8 billion, a 1% year-on-year decline; net loss was $1.61 billion, with a total loss of $2.091 billion in the first half of the year. This financial report is also referred to by analysts as the "worst earnings report ever."

The company's Q3 performance guidance announced at the same time is also lower than analysts' expectations, and Intel also announced a plan to lay off 1.5 million people by the end of the year.

In the past year, Intel's stock price has fallen by a cumulative 36%, with a market cap of approximately $93 billion, while Qualcomm's stock price has risen by more than 56% during the same period.

Recently, Intel is actively brewing a 'self-rescue' plan.

At the end of August, The Wall Street Journal reported that media outlets mentioned Intel is discussing various options, including splitting its product design and manufacturing business, and cutting factory investment projects. Morgan Stanley and Goldman Sachs, as long-term partners of Intel, are providing comprehensive strategic advice, including potential acquisitions.

At the board of directors meeting in mid-September, Intel stated that it is considering various strategic options, including cutting billions of dollars in factory projects, selling part of its subsidiaries, and splitting its core business into independent companies.

After rumors of merger talks with Qualcomm, Intel's stock price surged sharply in intraday trading on Friday, with a maximum gain of 13% and triggered a temporary suspension.

Editor/ping