The shares of Intel Corporation INTC are trading 5.38% higher in Tuesday’s pre-market amid reports of a deal with Broadcom Corporation AVGO and Taiwan Semiconductor Manufacturing Co. TSM.
What Happened: The Wall Street Journal reported on Saturday that Broadcom and Taiwan Semiconductor Manufacturing are contemplating bids for portions of the struggling chipmaker. The report states that Broadcom has been exploring Intel’s chip design and marketing operations, while TSMC, a contract chipmaker, has considered acquiring some or all of Intel’s chip manufacturing facilities through an investor consortium or a different arrangement.
Intel stock has been rising after a previous report stated that the Trump administration is hopeful of TSMC buying a 20% stake in Intel’s foundry services business as part of its Made in America plans. The investment could come in the form of a cash infusion or the provision of technology.
Why It Matters: Intel’s financial struggles have resulted in large-scale layoffs and dividend suspension. Despite a 16.7% year-to-date gain, Intel’s shares have plummeted nearly 47% over the past year amid worries over the chipmaker’s unclear turnaround strategy and its struggle to gain a larger share of the profitable AI market.
Investors turned optimistic after Vice President JD Vance at a recent AI conference in Paris stated that the Trump administration plans to implement measures ensuring AI chips are designed and produced in the U.S.
The struggling chipmaker is currently looking for a new CEO and is working towards launching new products and achieving stable production using the 18A manufacturing process technology node.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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