TLDR:
- Intel faces potential bids from Broadcom and TSMC for parts of its business, with Broadcom interested in chip design/marketing and TSMC eyeing chip plants
- Stock surged 20% after VP Vance’s comments about ensuring AI chips are made in US
- Intel’s shares have lost nearly half their value over the past year amid turnaround concerns
- Company’s Arrow Lake laptop CPUs showing strong performance, while desktop chips struggle against AMD
- Intel 18A process node going into volume production later in 2025, with Microsoft and Amazon as customers
Intel Corporation’s stock has become the center of market attention following reports that both Broadcom and Taiwan Semiconductor Manufacturing Co. (TSMC) are considering bids for different parts of the company, according to The Wall Street Journal.
Broadcom has expressed interest in Intel’s chip-design and marketing operations, while TSMC is evaluating the possibility of acquiring some or all of Intel’s manufacturing facilities. These discussions could potentially lead to a major restructuring of the longtime chip industry leader.
The company’s stock saw a dramatic 20% increase last week after U.S. Vice President JD Vance indicated at an AI conference in Paris that the Trump administration would implement measures to ensure AI chips are designed and manufactured within the United States. This policy direction could provide substantial benefits to Intel’s foundry business.
Despite this recent uptick, Intel’s overall stock performance has been challenging, with shares losing approximately half their value over the past year. This decline reflects ongoing concerns about the company’s turnaround strategy and its position in the artificial intelligence chip market.
The company is currently operating without a permanent CEO following Pat Gelsinger’s unexpected retirement in late 2024. This leadership vacuum comes at a crucial time as Intel attempts to execute its ambitious foundry strategy while defending its market position against competitors.
In the PC market, Intel faces mixed results across its product lines. While its desktop processors have struggled to match AMD’s offerings, particularly in gaming applications, the company’s laptop chips have shown more promise. Early reviews of Intel’s Arrow Lake laptop processors have been notably positive, with strong performance and efficient power consumption.
The server CPU market presents another battlefield where Intel is taking aggressive action. The company’s Granite Rapids processors have largely closed the performance gap with AMD, though Intel recently had to adjust prices downward to remain competitive.
A key milestone approaches with Intel’s 18A process node, scheduled for volume production later this year. The company has already secured major customers including Microsoft and Amazon for this advanced manufacturing technology.
The stock currently trades below book value, suggesting pessimistic market sentiment despite the company’s strategic initiatives and recent developments.
Technical Analysis
Technical analysis shows the stock has remained mostly range-bound since August last year, with key resistance levels at $26, $32, $37, and $45. A major support level exists near $19.
The relative strength index (RSI) currently sits just below 70, indicating strong bullish momentum in recent trading sessions.
Trading volume has increased above average during recent price movements, particularly as news of potential acquisition interest emerged.
The stock is currently testing resistance near its 200-day moving average, a level that has proven challenging to break through in recent sessions.
Immediate price action suggests investors are closely monitoring the $26 level, which coincides with the upper boundary of recent trading patterns.
Market watchers note that any decisive move above current resistance levels could trigger further upward momentum, while a reversal might find support around the $19 mark.
