Intel shares surge as acquisition talks with Broadcom, TSMC surface
Intel's (INTC) stock saw a significant jump on Tuesday morning, following new reports that the company is once again at the center of acquisition discussions.
Chip designer Broadcom (AVGO) and Taiwan Semiconductor Manufacturing Company (TSM), the biggest chipmaker in the world, are each in the early stages of considering bids that could see the American chipmaker be broken up, the Wall Street Journal reported over the weekend citing people familiar with the matter, News.Az reports, citing foreign media.
Broadcom (AVGO) is considering a bid for Intel's chip design business, while TSMC is focused on a deal for the manufacturing side, though it would be complex and expensive to refit Intel's factories to make chips the way TSMC usually does, the unnamed sources told the Journal.
Reports of possible deals with competitors were one of the few things that lifted Intel stock amid a difficult 2024 that saw shares decline some 60%. The year ended with CEO Pat Gelsinger's departure following a lackluster turnaround effort and reports of possible acquisition bids by competitors.
Intel shares surged last week before declining on Friday, and appear set to start this shortened trading week on a high note after markets were closed Monday in the United States for the President's Day holiday.
Shares of the chipmaker were up more than 5% in premarket trading Tuesday after entering the day down roughly 46% over the last 12 months. Broadcom shares were little changed, while TSMC's U.S.-listed shares rose less than 1% Tuesday.
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