What Happened?
Shares of computer processor maker Intel (NASDAQ: INTC) jumped 4.9% in the afternoon session after reports surfaced that the company approached Apple about a potential investment.
According to people familiar with the matter, the talks were in their early stages and also covered how the two tech companies could work more closely together. While an agreement was not certain, the discussions were part of Intel's efforts to bolster its business.
The shares closed the day at $31.22, up 6.4% from previous close.
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What Is The Market Telling Us
Intel’s shares are extremely volatile and have had 33 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 1 day ago when the stock gained 2.8% as investors continued to react positively to a recent announcement that competitor Nvidia planned to invest $5 billion in the company and collaborate on new products.
The major investment from the leading AI chip company also included a partnership to work on AI and data centers. This news was seen as a lifeline for Intel, which had been falling behind rivals like Nvidia and Advanced Micro Devices. The developments breathed new life into the company.
Intel is up 55.8% since the beginning of the year, and at $31.50 per share, has set a new 52-week high. Investors who bought $1,000 worth of Intel’s shares 5 years ago would now be looking at an investment worth $640.76.
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