Intel Stock Surges Amid Acquisition Rumors

Intel’s (INTC) stock price increased by over 8% during late-morning trading on Friday. This surge came after a report suggested that the struggling chipmaker is the target of an acquisition attempt.

Acquisition Interest

According to the tech newsletter SemiAccurate, it received information indicating that a company is interested in acquiring all of Intel. SemiAccurate mentioned in a report on Friday that an email it verified over months expressed a keen intent to buy Intel as a whole, rather than just certain segments.

However, the newsletter also noted that while the authenticity of the email was confirmed, it was unclear if this reflected a serious plan or if it was merely a hypothetical discussion by a CEO.

Intel's Financial Struggles

The chip giant has faced significant financial challenges, with its share value declining approximately 54% over the last year. In December, the company announced the retirement of its former CEO Pat Gelsinger and his exit from the board of directors. This leadership change occurred as Intel struggled to keep pace with competitors like Nvidia, which has greatly benefited from the rise of artificial intelligence technology.

In August, Intel's stock dropped by 27% following disappointing revenue results for the second quarter, which included news of layoffs. This shortfall was attributed in part to Intel's accelerated plan to ramp up production of its Core Ultra chips designed for AI applications, according to Gelsinger during a call discussing earnings.

Future Outlook and Partnerships

In September, there were reports that Qualcomm was considering acquiring some of Intel's chip design units as well. Furthermore, Intel has been actively exploring various options to stabilize its business, working with Morgan Stanley and Goldman Sachs to evaluate strategies such as dividing its foundry division and pursuing mergers and acquisitions.

Additionally, the company has been in discussions with Apollo Global Management for a potential $5 billion investment. Despite the challenges, Intel secured nearly $7.87 billion in funds in November under the Chips Act. This funding aims to support Intel’s substantial investment of almost $90 billion in the U.S. by the end of the decade, which is a part of a more extensive plan exceeding $100 billion to expand its fabrication and advanced packaging facilities across various states including Arizona, New Mexico, Ohio, and Oregon.

Intel, Acquisition, Stocks