Shares of Intel (INTC) surged on Tuesday morning, the first day of trading since new reports emerged over the weekend that the chipmaker is the center of acquisition talks. According to the Wall Street Journal, Broadcom (AVGO) and Taiwan Semiconductor Manufacturing Company (TSM) are each in the early stages of considering bids that could see the American chipmaker be broken up. Broadcom 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. Reports of possible deals with competitors were one of the few things that lifted Intel stock amid a difficult 2024, which saw shares decline by about 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%. — news from Investopedia
