Intel shares rallied 16.1% on Tuesday following a Wall Street Journal report that both Broadcom and Taiwan Semiconductor Manufacturing are potentially weighing bids that could result in splitting the embattled chipmaker.
The stock closed at $27.39 and notched its best day since March 2020.
The Wall Street Journal reported that Broadcom may consider a play for the company’s chip design and marketing segment, citing people familiar with the matter, while TSMC is interested in a stake or complete control of Intel’s factories. The companies have not filed bids and talks are largely informal, the Journal reported.
The iconic American chipmaker’s stock has continued to sink lower in recent years, shedding billions in market value. Intel fell behind on the artificial intelligence tailwinds that have swept up the broader semiconductor sector.
In August, shares suffered their worst day on the stock market in 50 years and hit their lowest level since 2013 after the company posted disappointing quarterly results. Intel also said it would axe 15% of its employees.
By September, CNBC confirmed that competitor Qualcomm had approached the company about a potential takeover, citing a person familiar with the matter. The Intel board ousted CEO Pat Gelsinger in December as the stock underperformed and confidence dwindled in his ability to turn around the embattled chipmaker.
Last week, shares popped 6% after Vice President JD Vance said America will protect AI technologies from foreign adversaries and promised that more AI chips would be made on U.S. soil.
With Tuesday’s gains, shares are up nearly 31% this year following a 60% slump in 2024. Broadcom shares dipped 1.9%, while Taiwan Semi dipped less 0.6%.
Read the full story here: Broadcom, TSMC Weigh Possible Intel Deals That Would Split Storied Chip Maker