Intel’s Stock Soars Amid Breakup Speculation Involving TSMC and Broadcom
The tech industry is abuzz with speculation surrounding a possible Intel Corp. breakup, fueling a major surge in the company’s stock price. Intel shares skyrocketed by as much as 11%, marking their biggest single-day gain since October 2023, as reports surfaced about potential deals involving Taiwan Semiconductor Manufacturing Co. (TSMC) and Broadcom Inc.
TSMC and Broadcom’s Potential Role
According to Bloomberg News, TSMC has explored the idea of taking over Intel’s U.S. factories, with the possibility of holding a controlling stake in the venture. Meanwhile, the Wall Street Journal reported that Broadcom has held informal discussions about acquiring Intel’s chip-design and marketing business. If either of these deals materializes, it could lead to a historic restructuring of the iconic chipmaker.
Intel’s Struggles and the Case for a Breakup
Once a dominant force in the semiconductor industry, Intel has faced intense competition from rivals like Nvidia and AMD, losing its technological edge over the years. The company has struggled to catch up in the booming AI chip market, allowing Nvidia to establish a commanding lead. These struggles have led to increasing pressure from investors and analysts to separate Intel’s chip manufacturing and product-development divisions.
The speculation about a breakup is not new. Even Intel’s own leadership has acknowledged the possibility in the past, signaling that such a move remains a viable option for the company’s future.
Intel’s Leadership Challenges
Adding to Intel’s uncertain future is its ongoing search for a new CEO. Last year, the company’s board ousted former CEO Pat Gelsinger, citing slow progress in his comeback strategy. The leadership shake-up has only fueled speculation about the company’s long-term direction and whether a split would be beneficial.
Stock Market Reaction and Future Outlook
Investor excitement over these potential deals pushed Intel’s stock up to $26.24 in New York trading on Tuesday. The stock has already gained 18% this year, largely driven by the latest breakup rumors. If Intel does proceed with a split, it could mark a major shift in the semiconductor industry, reshaping the competitive landscape.
While no official confirmation has been made, the tech world will be closely watching how Intel, TSMC, and Broadcom navigate these discussions in the coming weeks. For now, Intel’s stock rally indicates that investors see a breakup as a potential game-changer for the company’s future.
Reference from:-https://www.livemint.com/companies/news/intel-shares-surge-the-most-since-2023-on-breakup-speculation-11739896395581.html