Intel just got some good news. Is the return real?

Just one business day later The Wall Street Journal reported that Qualcomm was interested in buying Intel (INTC 3.96%)today there is news of another interested party willing to pay billions for a piece of the chip maker.

According to a report in Bloomberg, Apollo Global Managementone of the world’s largest private equity firms, has offered to take a multibillion-dollar stake in Intel.

Shares of Intel were up 3.4% on the news as of 12:44 a.m. ET.

Image source: Getty Images.

Intel wins another contender

According to Bloomberg, Apollo Global is willing to invest up to $5 billion in Intel, although ongoing discussions are confidential.

It’s unclear whether such an investment will happen, but it’s the latest evidence that Intel’s low price and upside potential look attractive to more buyers and investors.

Today’s gains may also have been boosted by Friday’s news that Qualcomm has approached Intel about a possible acquisition, which emerged shortly before the market closed. A tie-up between the two tech giants would likely face significant regulatory scrutiny.

Is Intel too cheap to ignore?

With Intel stock in storage following a disastrous Q2 report that included eliminating its dividend and a massive restructuring, it’s not a complete surprise to see sharks like Qualcomm and Apollo circling the waters.

What’s not clear at this stage is whether Intel would accept a buyout offer or another “strategic option,” such as a multibillion-dollar partnership with a PE firm like Apollo, which could come with a request for council seats.

A plan to try to sell the company would certainly sink the stock, but CEO Pat Gelsinger seems determined to respond, and the business still faces plenty of challenges.

Still, the attention Intel is getting is a good sign for investors. The stock looks cheap based on its potential, but the company has a long history of missed opportunities and disappointing results.