Intel is reportedly in early talks with Apple Inc. for a potential investment, as the American chipmaker seeks to regain ground in the highly competitive semiconductor market. The discussions, first revealed by Bloomberg, come at a pivotal moment for Intel, which is working to restore its standing after years of market share erosion and missed opportunities.

The negotiations are said to be preliminary, with no certainty that a deal will materialize. However, sources close to the matter suggest that the talks could extend beyond financial investment into a broader collaboration. For Intel, securing support from Apple—one of the world’s most influential technology companies—would be a major boost as it tries to turn its fortunes around.

News of the potential tie-up immediately buoyed investor confidence. Intel shares surged 6.4% on Wednesday to close at $31.22, while Apple’s stock slipped marginally to $252.31. The excitement reflects optimism in Intel’s revival strategy, which has already attracted attention from global tech giants. Nvidia recently committed $5 billion, while Japan’s SoftBank Group added a $2 billion investment. In addition, the U.S. government, which views Intel as a strategic asset, secured a roughly 10% equity stake in August.

Intel’s turnaround is being spearheaded by CEO Lip-Bu Tan, who has promised a more measured approach to expanding Intel’s foundry services than his predecessors. The company has faced intense challenges, losing ground to AMD in CPUs and ceding dominance in the booming AI hardware market to Nvidia. While Intel once sought to become a dominant force in chip manufacturing, it has struggled to attract customers to its most advanced processes. Despite these hurdles, renewed financial backing and government support have helped push Intel’s stock up more than 60% since early August.

For Apple, any investment in Intel would be primarily strategic, rather than a signal of returning to Intel processors. The Cupertino-based giant began phasing out Intel chips from its Mac lineup in 2020, replacing them with in-house Apple Silicon processors manufactured by Taiwan Semiconductor Manufacturing Company (TSMC). Yet Apple has shown strong interest in supporting U.S.-based chip production, aligning with government efforts to reduce reliance on overseas supply chains.

At a White House event in August, Apple CEO Tim Cook emphasized the broader industry benefits of domestic semiconductor investment. “Increased investment by companies like Apple could create a domino effect in U.S. manufacturing,” Cook said. On Intel’s revival, he added, “We’d love to see Intel come back,” highlighting the potential advantages of stronger competition within the chip sector.

Analysts believe that Apple’s involvement could help Intel rebuild credibility, accelerate its U.S. manufacturing capabilities, and strengthen America’s semiconductor ecosystem. With the world’s leading tech players and Washington’s backing, Intel’s revival campaign may be gaining the momentum it needs to stage a comeback.