Intel Stock Jumps 20% on TSMC-Nvidia Takeover Talk, Nvidia Gains 6%
Today the shares of most Big tech companies climbed again, but the Intel stock (INTC) outperformed, while Nvidia also gained 6.5%.
Despite escalating trade tensions, major US stock indices ended the day on a positive note, with the Nasdaq and S&P 500 gaining ground thanks to strength in tech and AI stocks. The Dow Jones underperformed, weighed down by industrial and consumer-focused companies.
Leading the charge in the tech sector were Nvidia, Tesla, Oracle, and Palantir, all posting solid gains. Meanwhile, Intel (INTC) saw a strong rebound, driven by renewed speculation about a potential acquisition by Taiwan Semiconductor Manufacturing Co. (TSMC).
Intel Shares Rally on Takeover Speculation
Intel trading above $23 in after-hours
Intel’s stock had previously rallied 40% in February, fueled by reports that TSMC was considering an acquisition. However, as the rumors faded, sentiment turned negative, leading to a sharp sell-off that pushed Intel’s shares below $20 for the first time since January.
After hitting a low of $19.29 yesterday, Intel rebounded above $20 today, climbing another $3 in after-hours trading following reports that TSMC is once again interested in Intel and has pitched a partnership with Nvidia and AMD to manage Intel’s foundry business.
This development comes as the Trump administration prioritizes Intel’s survival as a key US chipmaker, especially after Intel reported a staggering $18.8 billion net loss in 2024.
Besides that, Intel announced that Lip-Bu Tan, a highly experienced technology executive with deep expertise in the semiconductor industry, will take over as the company’s CEO. His appointment marks a significant leadership shift as Intel looks to strengthen its position in the competitive chip market.
Tan replaces interim co-CEOs David Zinsner and Michelle Johnston Holthaus, who had been jointly leading the company during the transition period. Zinsner will continue in his role as Intel’s Senior Vice President and Chief Financial Officer, while Holthaus will remain as CEO of Intel Products, overseeing key business operations. Intel’s leadership change comes at a crucial time.
Nvidia Stock Gains 6% Despite Market Pressures
Nvidia (NVDA) opened with a bullish gap and continued higher, closing the session up 6% at $115.48. The stock, which has been a dominant force in equity markets for the past two years, has faced selling pressure since January due to rising semiconductor competition, AI sector concerns, and trade war uncertainties.
Investor sentiment toward Nvidia has also weakened following the low-cost DeepSeek AI release, sparking concerns over slowing sales growth and high valuations in the semiconductor industry. Despite today’s rally, buyers will need to push past the 100-day SMA, which could act as resistance in the near term.
Conclusion: Intel and Nvidia Drive Tech Rally
While the broader market remains cautious, Intel’s 20% surge and Nvidia’s strong performance highlight continued investor interest in semiconductors and AI-related stocks. With Intel’s future still uncertain and Nvidia facing key resistance levels, the coming days could bring further volatility in the sector.
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