Intel Corporation (NASDAQ:INTC) shares are trading higher Tuesday after reports emerged that Broadcom Inc. (NASDAQ:AVGO) and Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) are considering acquiring portions of the company.
What To Know: The Wall Street Journal reported that Broadcom is exploring a bid for Intel's chip design and marketing operations, while TSMC is looking into acquiring some or all of Intel's manufacturing facilities through an investor consortium or another arrangement.
Intel stock has been gaining after a prior report suggested the Trump administration is pushing for TSMC to acquire a 20% stake in Intel's foundry services business as part of its efforts to strengthen domestic semiconductor production. The investment could be in the form of direct cash infusion or technology support.
Despite a 16.7% gain this year, Intel's stock has fallen nearly 47% over the past year due to concerns over its uncertain turnaround strategy and struggles in the AI market. The company has faced financial challenges, leading to layoffs and a suspended dividend.
Investors grew optimistic after Vice President JD Vance stated at an AI conference in Paris that the Trump administration intends to implement policies ensuring AI chips are designed and produced in the U.S.
Intel is currently searching for a new CEO and working to stabilize production with its 18A manufacturing process technology node.
INTC Price Action: Intel shares were up 10.9% at $26.18 at the time of writing, according to Benzinga Pro.
Read Next:
- Why Is Walgreens Boots Alliance Stock Trading Higher On Tuesday?
Image Via Shutterstock.
