Intel Approaches Apple About Investment | Bloomberg Tech 9/25/2025

Key Concepts:

• Intel's potential investment from Apple and closer collaboration.
• Quantum computing breakthrough by HSBC using IBM's processor.
• Disney's potential legal battle with President Trump over Jimmy Kimmel's show.
• Valuations in the tech market, particularly in AI.
• Government involvement in the semiconductor industry.
• Nvidia's role in the AI ecosystem and its investments.
• Physical AI and its potential impact on infrastructure.
• AI data centers and the challenges of powering them.

1. Intel and Apple Collaboration:

• Main Point: Intel approached Apple for a potential investment and closer collaboration.
• Details:
  • Early talks are ongoing, with unknowns about the investment structure.
  • Intel shares increased by 12% following the news.
  • Potential areas of collaboration include foundry chip orders and advanced chip packaging.
  • Intel is 10% owned by the U.S. government.
  • Intel has already secured investment from NVIDIA and Softbank.
• Arguments:
  • Positive move for Intel, potentially neutral for Apple.
  • Apple may be considering onshoring chip manufacturing to the U.S. to satisfy the White House's plan and diversify away from TSMC in Taiwan.
• History: Apple transitioned away from Intel chips around five years ago due to dissatisfaction with Intel's technology.
• Investor Perspective:
  • Government backing changes the game for Intel.
  • Intel's innovation challenges remain, particularly in AI chips.
  • Potential customers like NVIDIA and Apple encourage investors to take a harder look.
  • A lot of assumed outcomes are built into the price of the stock.
• Strategic Play: Intel is trying to find customers for its foundry plant.
• Quote: "I'm not going to build it and wait for them to come. They've got to come and then I'm going to build it." - Referring to Intel's approach to building fabs.
• Rational for Apple: Diversification away from reliance on Taiwan Semiconductor (TSMC) and having a second manufacturer.

2. Quantum Computing Breakthrough:

• Main Point: HSBC achieved a breakthrough in deploying quantum computing in financial markets using IBM's processor.
• Details: Improved bond price predictions.
• Investment Opportunity: Quantum computing is seen as the next wave of innovation after AI.
• Goal: Getting to 10,000 to 100,000 qubits.
• Business Model:
  • Renting out quantum computers (prices ranging from $10,000 to $50,000 per hour).
  • Taking a revenue stream from the intellectual property (IP) created using quantum computers.
• Quote: "Whoever builds the first quantum computer almost overnight could become Pfizer because the compute for pharmaceuticals could be that profound."

3. Disney and President Trump Legal Battle:

• Main Point: Disney is preparing for a legal battle with President Trump over Jimmy Kimmel's return to TV.
• Details:
  • Kimmel's show drew a record 6.26 million viewers.
  • Potential legal and regulatory challenges.
• Legal Side: Trump and the FCC commissioner have threatened to pull licenses for ABC stations.
• Regulatory Side: Disney is doing a lot of deals that require approval and could face resistance from the Department of Justice and the FTC on anti-trust grounds.
• Kimmel's Reaction: Kimmel has become the face of free speech against the administration.

4. AI Data Centers and Nvidia's Role:

• Main Point: Discussion on the valuations and investments in AI data centers, with a focus on Nvidia's role.
• Details:
  • CoreWeave received further commitments from OpenAI to build out their data center needs, upping by another $6.5 billion to more than $22 billion in commitments.
  • Barclays raised its price target for Nvidia from $200 to $240, maintaining an overweight status.
  • Since December 2024, there have been over $2 trillion of announced dollars of compute in over 40 gigawatts of power.
• Nvidia's Investment in OpenAI: Nvidia is investing $100 billion into OpenAI in order for OpenAI to take $100 billion worth of Nvidia gear.
• Concerns:
  • Power consumption of AI data centers.
  • Circular reference issue in investments.
• Return on Investment (ROI): Hyperscaler backlog has exploded to over $1.1 trillion.
• Alibaba's Perspective: Alibaba's CEO estimates $4 trillion by 2030.
• Nvidia and Intel Partnership: Favorable for Nvidia, with Intel focusing on an AI product for x86 CPUs in the data center.
• Market Share: General-purpose silicon still represents greater than 90% of the market.

5. Physical AI:

• Main Point: Physical AI is reaching an inflection point.
• Definition: Taking big foundational models that now exist credibly that can interact with things like sensors and robotics and create smart devices everywhere in our physical world.
• Focus: Intersection of observability and predictability in the environment around us.
• Examples:
  • Bright AI: Sensors for utility poles and water pipelines.
  • TC Labs: Helping oil refineries be more efficient and carbon-friendly.
  • Tree Swift: Data set of sensors for forests.

6. Amazon FTC Settlement:

• Main Point: Amazon has agreed to pay $2.5 billion in penalties and refunds and to change its process for how you cancel Prime subscriptions.
• Details:
  • $1 billion in civil penalties.
  • $1.5 billion to customers.
  • Accusation that Amazon was misleading millions of customers into signing up for Prime, but then making it intentionally difficult to cancel.

7. South Korea and U.S. Investment:

• Main Point: South Korea says investment projects in the U.S. will remain in limbo until visa issues are resolved.
• Details: In the wake of the Trump administration’s immigration raid at a Hyundai battery plant in Georgia.

8. Meta EU Charge:

• Main Point: Meta is set to face a charge sheet from the EU for failing to adequately police illegal content.
• Details: Risking fines violating the content moderation rulebook.

9. New York City Mayoral Race:

• Main Point: Discussion on the New York City mayoral race.
• Details:
  • The field is going to collapse.
  • It’s going to come down to me versus Mr. Mamdani.
  • Mamdani has 40%.
  • He has very radical ideas which are exciting to one group of the population, especially young people.
  • But a are pollerrizing to many -- but are polarizing to many other people.
  • Socialism does not work in New York City. It’s antithetical.
  • We’re the business capital, right? We’re pro-business.
  • Business is the engine that drives the train.

Synthesis/Conclusion:

The broadcast covers a range of technology and business news, from potential shifts in the semiconductor industry with Intel and Apple to breakthroughs in quantum computing and the growing AI sector. Government involvement, particularly in the semiconductor industry, is a recurring theme, raising questions about its impact on investment decisions. The discussion also highlights the challenges and opportunities in the rapidly evolving AI landscape, including the power demands of data centers and the potential of physical AI. Finally, the broadcast touches on legal and regulatory issues facing major companies like Disney, Amazon, and Meta, as well as political and economic factors influencing international investment.