Costfoto/NurPhoto/Getty Images
-
Intel shares added to recent gains Tuesday following a report last week that the company could be a takeover target.
-
Rival chipmaker Broadcom is the most likely buyer, some analysts say, with Elon Musk mentioned as a potential wildcard.
-
Intel shares have been rising recently, but the stock has lost more than half its value over the past 12 months.
The takeover rumors that sent Intel shares soaring last week are still brewing today.
Intel shares (INTC) rose more than 2% Tuesday afternoon, outpacing gains in broader markets and extending Friday’s gains, fueled in part by trading rumors.
Citi analysts said last week that they see Broadcom (AVGO) as “the company most likely” to be interested in buying Intel. Such a deal, analysts say, could force Broadcom to sell Intel’s struggling foundry business – which the US government may not like, given its “declared interest in Intel developing a merchant foundry” .
Other potential buyers cited include Qualcomm (QCOM) – and JPMorgan analysts said last week that 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 his Tesla (TSLA), xAI and SpaceX entities will probably need it.
Intel is valued in the tens of billions of dollars, but the stock has lost more than half its value over the past 12 months, even after its recent rebound. The latest gains indicate that investors may be embracing the possibility of changes, including mergers and acquisitions, coming following the retirement of CEO Pat Gelsinger late last year.
Read the original article on Investopedia
