Intel (INTC) Stock Surges on Acquisition Rumors
Key Points:
* Intel (INTC) stock jumps over 10% on news of potential deals with Broadcom (AVGO) and TSMC (TSM).
* Broadcom reportedly considering bidding for Intel's product business.
* TSMC exploring potential control of Intel's factories.
* Intel's manufacturing business has faced challenges in attracting external customers and reducing costs.
Acquisition Interest
Intel has become an attractive acquisition target due to its struggles in the past few years. Qualcomm (QCOM), Arm (ARM), and Apollo have reportedly expressed interest in potential takeovers.
Intel's Manufacturing Business
Intel's manufacturing division primarily focuses on producing chips for its own products but has recently expanded into foundry services. However, it has faced difficulties in competing with TSMC in this space.
Potential Split
Wall Street analysts believe splitting Intel into two could unlock shareholder value. The company has announced plans to establish an independent subsidiary for its foundry business.
Market Impact
Broadcom shares dropped over 3% on Tuesday, while TSMC shares declined slightly. Intel stock has rallied significantly over the past week, buoyed by support for domestic chipmaking in the US.