Intel’s stock price soared by 16.1% to US$27.39, marking its best trading day since March 2020, as speculation about a potential breakup of the tech giant gained traction. Media reports suggest that two major industry players, Broadcom (AVGO) and Taiwan Semiconductor Manufacturing Company (TSMC), are eyeing separate portions of Intel’s business.
According to The Wall Street Journal, Broadcom is reportedly interested in acquiring Intel’s chip design and marketing division, while TSMC is exploring the possibility of acquiring a stake or full control over Intel’s semiconductor manufacturing operations. While the discussions are informal and no official bids have been made, the news has stirred investor optimism, causing a ripple effect across the semiconductor sector, with other chipmakers seeing upward movement in stock prices.
However, shares in both Broadcom and TSMC fell by 2.2% and 1.3%, respectively, on the day. There have been no indications that these two companies are collaborating on any potential acquisition offer, and formal takeover bids are yet to be filed. Despite the speculative nature of these talks, Intel’s stock price has been on a steady upward trajectory in recent weeks, having gained nearly 31% so far in 2025. This recovery comes after a difficult period in which the company faced a significant decline of approximately 60% in market value, primarily due to operational struggles and a failure to fully capitalize on the AI boom.
The surge in Intel’s stock is partly attributed to remarks made by U.S. Vice President JD Vance, who emphasized the country’s commitment to protecting AI technologies and manufacturing more AI chips domestically. While this aligns with the Biden administration’s policies, it contrasts with previous statements from the Trump administration, which allegedly encouraged TSMC to explore acquiring Intel.
Intel’s challenges have been well-documented over the years. The company’s failure to keep pace with its competitors in the semiconductor space, combined with a disastrous quarterly report in August 2023, led to a 15% workforce reduction and a historic low in share prices. Intel’s inability to capture the AI chip market has contributed significantly to its struggles, while rivals like NVIDIA and AMD have seized market share.
Amid this turmoil, speculation of potential takeover offers surfaced in the fall of 2023, with Qualcomm being the first to approach Intel. The situation grew more intense in December when Intel’s board removed CEO Pat Gelsinger, citing a loss of confidence in his ability to revitalize the company. As a result, Intel is currently in a state of flux, with its future direction uncertain, while its recent stock price rally provides a glimmer of hope for investors.
Intel’s story remains one of immense challenges but also potential for a turnaround, as its place in the semiconductor market and its ability to navigate the shifting landscape of AI and technology will continue to determine its fate.
References:
- The Wall Street Journal
- Market Insider
- Reuters
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