Intel Stock Gains On Speculative Buyout Report, Details Remain Unclear

Intel Corp INTC stock gained Friday on reports claiming that the struggling chipmaker is an acquisition target. The stock has plunged 54% in the last 12 months.

Charlie Demerjian of SemiAccurate claimed an email about a resourceful company trying to acquire Intel wholly. However, the report did not disclose the name of the acquirer or the purchase consideration for Intel.

Reportedly, CFO Dave Zinsner had acknowledged the possibility of selling Intel’s factory and product development divisions. Zinsner and Michelle Johnston Holthaus became Intel’s interim co-CEO after the company fired veteran chief Pat Gelsinger as his turnaround efforts failed to impress the board.

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Benzinga has reached out to Intel for comments and will update on receiving their response.

Unlike Taiwan Semiconductor Manufacturing Co TSM and Nvidia Corp NVDA, Intel has failed to capitalize on the AI technology boom.

Intel also failed to make a mark with its AI accelerator business after the Gaudi chip lost out to competitors like Nvidia.

Intel also lost out on the PC gaming market to Advanced Micro Devices, Inc AMD.

Under Gelsinger’s supervision, Intel restructured smaller divisions over the past two years and reduced its workforce in 2024.

Intel is spinning off its Altera chip division, aiming to make it a publicly traded company. However, it continues to own Mobileye Global Inc MBLY, Israel’s autonomous driving firm.

In 2024, Intel also sought to transform its foundry business into an independent unit.

Also this week, Intel announced plans to spin off Intel Capital into a standalone fund for greater independence and capital attraction.

Standalone Intel Capital will operate under a new name in late 2025, with Intel as an anchor investor.

Intel showcased an electric vehicle platform with AI and cloud tools at CES 2025, bagging Stellantis STLA, Stellantis Motorsports, and Karma Automotive as clients.

Investors can gain exposure to Intel through Vanguard S&P 500 ETF VOO and iShares Core S&P 500 ETF IVV.

Intel Stock Prediction For 2025

Equity research can be a valuable source of information for learning about a company's fundamentals. Analysts create financial models based on the fundamentals and expected future earnings of a company to arrive at a price target and recommendation for the stock.

Shares of Intel have an average 1-year price target of $22.9, representing an expected upside of 7.56%.

Because of differences in assumptions, analysts can arrive at very different price targets and recommendations. 3 analysts have bearish recommendations on Intel, while 1 analysts have bullish ratings. The street high price target from Northland Capital Markets is $28.0, while the street low from Rosenblatt is $17.0.

Price Action: Intel stock is up 8.47% to $21.35 at the last check on Friday.

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