Intel stock price rises, boosted by a strong technology sector and a buyback agreement at the Ireland plant

LootboxPhobia · 2026-04-01T23:02:33+00:00

Intel's stock price recently increased by 2.5% following the agreement to acquire a 49% stake in Apollo's Fab 34 joint venture in Ireland for $14.2 billion. The deal will strengthen Intel's financial position and manufacturing capabilities, and is expected to increase earnings per share and support future technological development.

LootboxPhobia

2026-04-01 23:02:33

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Investing.com – Intel Corp. (NASDAQ:INTC) rose 2.5% on Wednesday, boosted by broad strength in the technology sector and news that it has reached a final agreement to buy back Apollo’s 49% stake in its Ireland Fab 34 joint venture for $14.2 billion.

The deal will allow Intel to reacquire funds managed by Apollo and the stake in related companies that Intel purchased for $11.2 billion in 2024. The initial transaction provided Intel with capital akin to equity, while keeping its balance sheet strong during a key period of expansion in the company’s manufacturing operations.

Intel plans to fund the repurchase with cash on hand and about $6.5 billion in new debt. The company said it expects the transaction to be accretive to ongoing earnings per share, while strengthening its credit profile in 2027 and beyond.

Intel Chief Financial Officer David Zinsner said: “Today, we have a stronger balance sheet, improved financial discipline, and a more mature business strategy.” The 2024 agreement gave Intel meaningful flexibility to accelerate key initiatives, including building Intel 4 and Intel 3 process capacity in Europe, and the Intel 18A process in the United States.

Fab 34 remains at the core of Intel’s global manufacturing footprint, producing chips using Intel 4 and Intel 3 process technology, including Intel Core Ultra and Intel Xeon 6 processors. The facility supports production for customers building AI-enabled systems.

Intel continues to expect to repay its debt when it matures in 2026 and 2027. The company is making major capital investments in its Irish campus to expand manufacturing capacity and enhance execution.

Apollo partner Jamshid Ehsani noted that the partnership began during an important phase of Intel’s advanced manufacturing roadmap, and Apollo’s long-term strategic capital has played a key role in accelerating production of next-generation chip technology.

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