Intel (INTC) stock jumped 16% Tuesday following a report that its rivals Broadcom (AVGO) and TSMC (TSM) are exploring potential deals with the chipmaker that would split it into two.
The Wall Street Journal reported late Saturday that Broadcom (AVGO) is considering making a bid for Intel’s product business, which designs semiconductors for computers and servers. The Journal, which cited people familiar with the matter, said TSMC has looked at controlling some or all of Intel’s factories, potentially as part of an investor consortium. The companies have not submitted deals to Intel, and the talks are preliminary and informal, the Journal wrote.
Broadcom shares fell nearly 2% Tuesday, while US-listed TSMC shares were down less than 1%.
Intel’s 16% gain Tuesday was its biggest single-day jump since March 2020. The surge puts Intel shares up 38.5% over the past five days, the largest gain in the company’s history as a public company.
NasdaqGS – Delayed Quote • USD
At close: February 18 at 4:00:01 PM EST
INTC AVGO TSM
Intel stock has been on a tear over the past week. The stock notched its biggest weekly gain since 2000 last Friday as the US signaled support for domestic chipmaking and reports surfaced that the US government was allegedly in talks with TSMC to support Intel’s turnaround efforts.
Intel’s manufacturing business primarily makes chips for itself (Intel’s product business) but opened up a foundry — in other words, began taking on external customers — in 2022 under the leadership of then-CEO Pat Gelsinger. Gelsinger had pushed to launch a foundry business competitive with Taiwan’s TSMC in an attempt to right Intel’s struggling manufacturing division, which had suffered from setbacks since the mid-2010s.
The turnaround effort has not been successful to date, given that Intel’s manufacturing business has struggled to take on outside customers and continues to bleed cash. Intel’s earnings disappointed investors throughout 2024, and the stock fell around 60% last year. Gelsinger was ousted by Intel’s board in December. The…
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