As of February 19, 2025, Intel Corporation’s (INTC) stock is trading at $27.39 per share. Recently, the stock experienced a significant increase of 16.1%, closing at $27.39 on February 18, 2025.
As of February 19, 2025, Intel Corporation (INTC) is trading at $27.39 per share.
This surge is largely due to reports that companies like Broadcom and Taiwan Semiconductor Manufacturing Company (TSMC) are considering acquiring parts of Intel’s business. Broadcom is reportedly interested in Intel’s chip-design and marketing divisions, while TSMC is eyeing Intel’s chip-manufacturing segment.
Despite this recent uptick, Intel’s stock remains 41.3% below its 52-week high of $46.63, which was reached on March 8, 2024.
Analysts have mixed views on these potential deals. Some believe that splitting Intel’s operations could improve efficiency, while others point out the complexities and regulatory challenges involved.
In summary, while Intel’s stock has recently risen due to acquisition rumors, it is still significantly below its peak from the past year.
In late 2024, Intel earned $14.3 billion in revenue, which was 7% less than the previous year. The company also reported a net loss of $126 million.
For the entire year, Intel struggled financially, losing $18.76 billion on $53.1 billion in revenue. To cut costs, it launched a $10 billion savings plan, which included laying off about 18,000 employees (15% of its workforce) and stopping dividend payments from the fourth quarter.
In December 2024, CEO Pat Gelsinger stepped down as Intel continued to face difficulties in turning things around.
However, one bright spot was Intel’s foundry business, which performed well and brought in $4.5 billion in revenue in the last quarter.
Overall, Intel is going through a tough financial phase but is making efforts to recover and strengthen its business.
Intel Considering a Major Breakup to Boost Shareholder Value
Intel is reportedly exploring a breakup as part of a strategy to increase shareholder value. The company has faced growing competition from other chipmakers, financial struggles, and challenges in keeping up with cutting-edge chip manufacturing. To address these issues, Intel is now considering selling off key parts of its business, attracting interest from major players like Taiwan Semiconductor Manufacturing Company (TSMC) and Broadcom.
Broadcom’s Interest in Intel’s Chip Design and Marketing Unit
Broadcom, a major semiconductor and networking company, is looking to acquire Intel’s chip design and marketing division. This division is responsible for developing new processor architectures and promoting Intel’s chips to customers. If Broadcom takes over this unit, it could strengthen its position in the industry by adding Intel’s expertise in processor design, AI computing, and data center hardware to its own portfolio.
Broadcom already has a strong presence in networking and infrastructure, and acquiring Intel’s chip design team could help it expand into the processor market. This move could give Broadcom a competitive edge against rivals like AMD and NVIDIA.
TSMC’s Interest in Intel’s Manufacturing Plants
Meanwhile, TSMC, the world’s largest contract chipmaker, is considering buying Intel’s manufacturing plants. Unlike Intel, which both designs and manufactures chips, TSMC focuses purely on production. Over the years, Intel has struggled to keep up with advanced chipmaking technologies, while TSMC has taken the lead in producing smaller, more powerful chips at 5nm and 3nm process nodes.
If TSMC acquires Intel’s factories, it could expand its manufacturing presence in the U.S., reducing dependence on Asian production hubs. This would be an important move given the rising geopolitical tensions and the U.S. government’s push for domestic semiconductor manufacturing.
What This Means for the Industry
News of these potential deals surfaced over the weekend, sparking discussions about the future of Intel. Some experts believe this breakup could help Intel focus on its strengths and become more competitive. Others worry that selling off major divisions could weaken Intel’s position as a leading semiconductor company.
These deals, if finalized, will require regulatory approvals, as governments closely monitor large mergers in the tech industry. For now, Intel’s future remains uncertain, but its decisions in the coming months could reshape the semiconductor industry.