INTC stock price: Intel jumps over 10% after report that Broadcom, TSMC bids could split the struggling chipmaker

[ResidentialBusiness]

Shares of Intel Corporation (NASDAQ:INTC) surged over 10% on Tuesday on the news that rivals Broadcom and Taiwan Semiconductor Manufacturing Co. (TSMC) are in talks to divide the ailing American chipmaker’s business into two parts, according to the Wall Street Journal.

Fast Company reached out to Intel for comment but a spokesperson didn’t immediately return our request.

Once the largest semiconductor company in the world, Intel is now struggling to turn around its business after the chip-manufacturing giant’s shares lost 59.60% last year due, in part, to missing out on the generative artificial intelligence boom.

According to the Journal report, Broadcom is interested in Intel’s chip-design and marketing business, if it finds someone to partner with Intel’s manufacturing business. TSMC signaled interest in investing in and studying Intel’s chip plants, potentially as one of several investors. The two companies are in separate, preliminary talks with Intel.

Shares in TSMC (NYSE:TSM) were down more than 1% at the time of this writing in midday trading, while Broadcom stock (NASDAQ:AVGO) was down about 3%, after both fell substantially on the market’s open.

Splitting up Intel would have been unthinkable in its heyday when it dominated the processing business, but the split is in line with recent industry trends toward either manufacturing or designing chips. And Intel has had quite a fall from grace. In November, after 25 years, the company lost its spot in the Dow Jones Industrial Average to Nvidia.

News of the talks comes after the Trump administration signaled it would safeguard American chip technologies at France’s AI Action Summit in Paris about a week ago, and the White House has been involved with aspects of the talks between Intel and TSMC over Intel’s factories, according to the Journal.

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