Intel’s stock took a leap on Tuesday morning thanks to fresh news about possible acquisition offers. Broadcom and TSMC, two major players in the chip industry, are interested in Intel.
Reports suggest that Broadcom may bid for Intel’s chip design services, while TSMC is eyeing a deal for Intel’s manufacturing operations. This speculation follows a tough period for Intel, where its shares plummeted about 60% in 2024 amidst challenges related to its turnaround plan.
The idea of a breakup might come into play, especially given the complexities involved in integrating Intel’s factories with TSMC’s manufacturing style. This transition could be both complicated and costly.
Although these reports have not been officially confirmed, they have already made waves. With Intel’s struggles under CEO Pat Gelsinger, the buzz around potential deals is one of the few things boosting its stock lately.
After a bit of a rollercoaster last week, Intel shares surged in premarket trading on Tuesday, gaining over 5%. This uptick comes after a year where they faced significant losses. Conversely, Broadcom’s stock remained stable, while TSMC saw a modest increase of less than 1% in their U.S. shares.
