Intel shares rose 6.9% to $47.18 after the company said it would buy back Apollo Global Management’s 49% stake in its Fab 34 chip plant in Ireland for $14.2 billion. With this deal, Intel regains full control of one of its key production sites. It also shows that Intel’s finances have improved since the original agreement.
The transaction reverses a 2024 arrangement in which Apollo-managed funds acquired a 49% stake in Fab 34 for $11.2 billion. This gave Intel equity-like capital when its balance sheet needed relief. Intel’s ambitions to expand manufacturing exceeded its internal funding. Intel kept 51% ownership and operational control during the joint venture. The facility produces Intel’s Core Ultra and Xeon 6 processors. By the partnership’s announcement, $18.4 billion had already been invested.
The buyback shows that Intel’s financial situation has improved. The company plans to pay for the deal with its own cash and about $6.5 billion in new debt. (Debt is money that Intel borrows and will need to repay with interest.) Management says this move will boost earnings per share, which measures profit per share, and improve Intel’s credit profile, an assessment of how likely the company is to repay its debts, starting in 2027. Intel also confirmed it will pay off debt as it comes due in 2026 and 2027. This supports the idea that Intel is managing its finances more carefully and explains why it is taking back full ownership now.
For traders, the 6.9% jump in Intel’s stock shows that the market sees the buyback as a sign of confidence. The stock rise suggests Intel’s finances have recovered enough to handle a big investment. The deal should also help the company’s long-term earnings. By regaining full control of this key European plant, Intel strengthens its position. This comes at a time when control over chip supply chains is a major issue in business and politics. Now, Intel has more flexibility with an asset it fully owns.
