Intel Soars 16% for Biggest Gain Since March 2020 Amid Breakup Buzz

19.02.2025

Intel shares jumped 16.1% on Tuesday after a Wall Street Journal report suggested that Broadcom and Taiwan Semiconductor Manufacturing (TSMC) are exploring potential deals that could split the struggling chip giant. The stock closed at $27.39, marking its best single-day gain since March 2020.

The report indicates that Broadcom is considering acquiring Intel’s chip design and marketing division, while TSMC is interested in a stake or full control of its manufacturing operations. However, no formal bids have been made, and discussions remain preliminary.

Once a dominant force in the semiconductor industry, Intel has faced mounting challenges in recent years, losing billions in market value and falling behind in the artificial intelligence boom. In August, its stock suffered the worst single-day drop in 50 years, hitting its lowest level since 2013 following disappointing earnings. The company later announced plans to cut 15% of its workforce.

By late 2024, CNBC reported that Qualcomm had approached Intel about a potential takeover. Amid growing concerns over its future, Intel’s board removed CEO Pat Gelsinger in December. More recently, the stock saw a brief boost after U.S. Vice President JD Vance pledged to protect AI technology from foreign competitors and increase domestic AI chip production.

Despite last year’s sharp 60% decline, Intel shares have rebounded nearly 31% in 2025. Meanwhile, Broadcom shares slipped 1.9%, and TSMC saw a modest 0.6% dip.