Shares of computer processor maker Intel (NASDAQ:INTC) jumped 10.5% in the afternoon session after The Wall Street Journal reported that the company is in talks with Broadcom and TSMC to sell certain assets. Sources revealed Broadcom is interested in Intel’s product business, while TSMC is more focused on snapping up and controlling some of its factories. Investors are betting on management to make a move to unlock value in some of its operating segments, given the significant investments that have been made in recent years. The stock’s reaction suggests the market sees real potential in a deal with industry peers like Broadcom and TSMC, both leaders in chip design and manufacturing.
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Intel’s shares are very volatile and have had 23 moves greater than 5% over the last year. But moves this big are rare even for Intel and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 7 days ago when the stock gained 8.7% on the news that Vice President JD Vance announced at the AI Action Summit in Paris that the US will provide regulatory measures to protect the country’s artificial intelligence technologies from “theft and misuse.”
The global AI race is intensifying across industries, but few are as critical as semiconductors, where AI-powered chips run smart data centers, large language models like ChatGPT, and self-driving cars. Intel has recently won government grants to build facilities to manufacture cutting-edge semiconductor chips on US soil in the coming years, a move that could help improve the company’s competitiveness.
The Vice President’s comments suggest Intel and other US innovators could benefit from measures that help protect valuable intellectual property, especially in artificial intelligence, ensuring their innovations drive sales and expand market share both domestically and internationally.
Intel is up 28.8% since the beginning of the year, but at $26.04 per share, it is still trading 43.6% below its 52-week high of $46.15 from March 2024. Investors who bought $1,000 worth of Intel’s shares 5 years ago would now be looking at an investment worth $393.76.
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