Intel (Intc) -stock rose on Tuesday by 9.6% after a report that his Rivals Broadcom (AVGO) and TSMC (TSM) investigate potential deals with the chip maker who would split it into two.
The Wall Street Journal reported on Saturday that Broadcom (AVGO) is considering making an offer for Intel’s product company, which designs semiconductors for computers and servers. The magazine, which people who are familiar with the case, said that TSMC looked at the control of some or all Intel factories, possibly as part of an investor consortium. The companies have not submitted deals to Intel, and the conversations are for the time being and informal, the magazine wrote.
Broadcom shares traded Flattish on Monday, while the US listed by the US rose slightly less than 1%.
Intel -Supply has been in a tear last week. De Stock recorded its biggest weekly win since 2000 last Friday when the US indicated support for domestic chipmaking and reported that the US government collaborated with TSMC to support the Turnaround efforts of Intel.
The production company from Intel mainly makes chips for itself (the product activities of Intel) but opened a foundry with other words, including external customer-in 2022 under the guidance of the then CEO Pat Gelsinger. Gelsinger had insisted on launching a Foundry-Business with Taiwan’s TSMC in an attempt to rectify the wrestling production division of Intel, which had suffered setbacks since the middle of 2010.
The Turnaround effort has not been successful so far, since the Intel production company has had difficulty hiring external customers and continues to bleed in cash. The income from Intel disappointed investors in 2024 and the share fell around 60%last year. Gelsinger was dropped off by the Intel board in December. The company has become an acquisition goal and the interest of Broadcom and TSMC follows reports of potential acquisitions of Qualcomm (QCOM), Arm (Arm) and Apollo last year.
Wall Street analysts have preferred Intel who splits his company into two. Raymond James analyst Srini Pajjuri wrote on Monday in a note to investors: “In our opinion, the splitting of Intel product and the foundry is the key to unlocking value.”
Last year Intel announced plans to set up an independent subsidiary for its foundry activities, which separates its finances and activities of its product division. The move was viewed by analysts because the company cleared the way for a potential split, although Intel’s US Chips Act financing limits its ability to fully sell its production company.
Laura Bratton is a reporter for Yahoo Finance. Follow her on bluesky @laurabratton.bsky.social. E -mail her on laura.bratton@yahooinc.com.
