Intel Stock Continues to Climb Amid Takeover Talks

The takeover rumors that sent Intel shares soaring last week are still brewing today.

Shares of Intel ( INTC ) rose more than 2% Tuesday afternoon, outpacing gains in broader markets and extending Friday’s gains fueled in part by deal-related rumors.

Citi analysts said last week that they view Broadcom (AVGO) as “the most likely company” 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 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 its Tesla (TSLA), xAI and SpaceX entities likely need.”

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.