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Intel shares extended fresh gains on Tuesday after a report last week that the company could be a takeover target.
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Rival chipmaker Broadcom is the most likely buyer, some analysts said, with Elon Musk mentioned as a potential wild card.
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Intel shares have rallied recently, but the stock has lost more than half its value in the past 12 months.
The takeover rumblings that lifted shares at Intel last week were still reverberating today.
Shares of Intel ( INTC ) were up more than 2% Tuesday afternoon, outpacing the broader market’s gains and extending Friday’s gains that were driven by it. Rumors related to the deal.
Citi analysts said last week that they see Broadcom ( AVGO ) as the “most likely company” interested in buying Intel. Such deals, analysts said, could require Broadcom to sell to struggling Intel Foundry business—which the US government might not like,”Interest stated Intel is developing a merchant foundry.”
Other named potential buyers include Qualcomm ( QCOM ) — and analysts at JP Morgan said last week they see a possible wild-card buyer in Elon Musk. Analysts “could understand the logic” if Musk was interested in Intel’s foundry arm, “given the amount of chips needed by his Tesla ( TSLA ), xAI, and SpaceX organizations.”
Intel is worth billions of dollars, but the stock has lost more than half its value in the past 12 months, even after its recent rally. The latest gains indicate that investors may be buying, given the turnaround, including M&A. CEO Pat Gelsinger’s retirement Late last year.
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