Intel Corp (NASDAQ: INTC) is pushing higher this morning following reports that the chipmaker has approached Apple Inc (NASDAQ: AAPL) – once a major customer – for a strategic investment.
The embattled semiconductor firm believes an investment from the iPhone maker will help bolster its business.
However, according to a group of INTC’s former board members, that’s not really the lifeline the chipmaker needs. Instead, it’s true salvation lies in going private.
Intel stock has soared nearly 60% in less than two months on the back of sizable investments from the US government and, more recently, from the AI darling, Nvidia Corp (NASDAQ: NVDA).
Why Apple Investment won’t save Intel stock
A sizable investment from Apple Inc may offer short-term optics – but it will likely not solve Intel’s deeper problems.
While powerful, the multinational is still primarily a design firm that isn’t particularly equipped to fix INTC’s core manufacturing challenges.
Intel’s issues stem from its inability to compete with Taiwan Semiconductor (TSMC) in advanced chip fabrication – a challenge that capital alone is unlikely to beat.
The same was the case with Nvidia’s recent $5 billion investment that briefly lifted sentiment, but did nothing to address INTC’s operational bottlenecks.
The market knows Intel stock needs more than a partner – it needs a transformation. And that won’t come from another design from writing a check.
Unless Apple agrees to be a Foundry customer that Intel so desperately needs, its investment may not result in anything more than short-term hype.
Why going private may be the answer for INTC
According to four of Intel’s former directors, going private could unlock transformative advantages for the beleaguered chipmaker.
Freed from quarterly earnings pressure, the company could restructure its sprawling conglomerate into focused, high-value units – including foundry, PC chip design, server business, and Mobileye.
Private ownership would enable bold capital allocation, potentially attracting up to $100 billion in investment that INTC reportedly needs to compete with TSMC.
Additionally, such a move could help Intel reverse its brain drain by offering competitive salaries and equity upside to top talent.
In short, with government coordination and backing from leading design firms, Intel could execute a complex disaggregation that public markets simply won’t tolerate.
The result: revitalized innovation, strategic autonomy, and long-term shareholder value.
Should you invest in Intel shares today?
All in all, Intel’s former directors believe restructuring the company into a distinct chip business and a cash-burning foundry business in the private market will unlock trapped value.
A swift, government-backed disaggregation could be completed within a year. By 2028, they added – the restructured entities could go public, delivering massive returns to taxpayers and shareholders alike.
For Intel, and for America, the time to act is now. “The world isn’t waiting for INTC to catch up,” they concluded.
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