Intel shares have continued on an upward trajectory this Tuesday following a report that surfaced last week, suggesting the company might be eyed as a takeover target. Among the speculated potential buyers, rival chipmaker Broadcom appears to be at the forefront, according to some analysts. Meanwhile, there are whispers of Elon Musk potentially playing an unexpected role in this situation.
Despite the recent boost, Intel’s stock has seen better days, having lost over half its value in the past year. The buzz around a possible takeover sparked a rally in Intel shares last week, and today, that momentum only seems to persist.
By Tuesday afternoon, Intel’s stock, marked by its ticker symbol INTC, had climbed more than 2%, exceeding the general market gains and building on Friday’s uptick fueled by acquisition rumors. Analysts from Citi recently highlighted Broadcom, identified by the ticker AVGO, as “the most likely company” interested in acquiring Intel. However, they pointed out that such a merger could necessitate Broadcom divesting Intel’s underperforming foundry division, a move that might face resistance from the U.S. government, given its interests in Intel expanding as a merchant foundry.
Other potential suitors have surfaced as well, including Qualcomm, denoted by the ticker QCOM. Analysts at JPMorgan have also thrown Elon Musk’s hat into the ring as a possible wildcard. They suggest that Musk’s interest could make sense, considering the significant quantity of chips required by Tesla, symbolized by TSLA, alongside his other ventures like xAI and SpaceX.
Even with a market valuation in the tens of billions, Intel hasn’t escaped the past year’s downturns, seeing its stock plummet despite recent gains. Investors seem to be banking on incoming changes, potentially involving mergers and acquisitions, following the retirement of former CEO Pat Gelsinger late last year.
