This article first appeared on GuruFocus.

INTC – Intel Corp. (INTC, Financial) has approached Apple Inc. (NASDAQ:AAPL) about a potential investment as part of efforts to revive its semiconductor business, according to people familiar with the matter.

The discussions are said to be preliminary and may not result in a transaction, according to a Thursday press release.

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The chipmaker’s shares surged about 6% on Wednesday upon the report, reflecting investor optimism. The boost comes on the heels of recent capital infusions: Nvidia committed $5 billion, SoftBank put in $2 billion, and the U.S. government has taken a 10 % stake.

Talks between Intel and Apple reportedly also include broader collaboration beyond just investment, but neither side has confirmed specifics.

Apple ceased using Intel-designed processors several years ago, opting instead for its in-house ARM-based chips, a transition completed in 2023.

Analysts caution that converting strategic talk into a binding agreement will be challenging. Still, Apple’s backing could lend fresh momentum to Intel’s turnaround in a competitive semiconductor landscape.