Intel stocks rose on reports of potential bids from Broadcom and TSMC, amidst a challenging financial year.

In Short

Intel shares rose over 5% amid reports that Broadcom and TSMC are considering bids for the chipmaker. Both companies are in preliminary talks, though significant challenges remain for TSMC in adapting Intel’s facilities.

Broadcom’s potential offer would centre on Intel’s chip design services, while TSMC is exploring a deal focused on Intel’s manufacturing facilities.

These discussions have emerged amid a challenging period for Intel, which has faced a sharp decline in stock value throughout 2024. Shares plummeted by approximately 60%, culminating in the departure of CEO Pat Gelsinger due to unsatisfactory turnaround efforts.

According to the Wall Street Journal, both Broadcom and TSMC are in preliminary talks regarding these potential acquisitions, which might lead to the division of Intel’s business. However, significant challenges remain, particularly for TSMC, as adapting Intel’s factories to meet its manufacturing requirements could prove complex and costly.

As of Tuesday morning, Intel shares rose over 5% during premarket trading. This improvement comes after a tumultuous period, although the stock remains down about 46% over the past year. In contrast, shares of Broadcom were stable, while TSMC’s U.S.-listed stock saw a minor increase of less than 1%.

Neither Intel, Broadcom, nor TSMC has publicly commented on the reports, and Investopedia has not confirmed the validity of the acquisition talks.