Intel Experiences Stock Growth after Buyout Talks

Intel Corp (INTC) is one of the leading chipmakers in a fast-moving market and could be bought up by Broadcom or TSMC. The Intel stock price jumped in response to the news.

White House administration wants Intel to succeed
Intel may be bought up soon.

Broadcom and Taiwan Semiconductor Manufacturing Company are both vying for the ownership of Intel Corp, according to an article in the Wall Street Journal. TSMC already owns a significant portion of the semiconductor market, and Intel’s market share, expertise, and products could help solidify them as a major rival for Nvidia.

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Intel’s stock climbed 16% as the news broke, but then it quickly petered off and is priced at $25.31 right now. The initial excitement has dissipated, but if a serious bid is made for the company, that could excite stock trading once more.

Is There Really a Bid for Intel?

Talks have already taken place, but no formal bid has been launched. However, reports show that TSMC may be targeting the manufacturing operations that Intel owns, which would serve TSMC well in its own operations. Broadcom, on the other hand, may be looking at buying up the chip design art for the business.

Intel is well regarded internationally for its chip design, which has made it a mainstay of the computer chip niche. Analysts expect that the company is about to turn its foundry business around very soon, despite losing $13 billion in 2024.

The new Intel 3 process node has been on the market for half a year now and is the power source for Xeon 6 data center chips. Anyone who buys up Intel will take control of that still in demand node but will also take on much for the company’s debt. The majority of that debt has been accrued by product development costs, which are likely to be covered relatively quickly by the success of Intel’s new products.

Intel has an agreement with Microsoft to make AI accelerators, which are custom chips, and this places Intel into an important and fast growing tech niche that services the AI marketplace. They are ideally positioned for a buyout by companies who want to strengthen their AI portfolio.

 

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ABOUT THE AUTHOR See More
Timothy St. John
Timothy St. John
Financial Writer - European & US Desks
Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.
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