Intel pops 16% for best day since March 2020 on potential breakup
Intel shares rallied 16% on Tuesday on a report that deals from Broadcom and Taiwan Semiconductor Manufacturing could break up the company.
Intel shares rallied 16.1% on Tuesday following a Wall Street Journal report that both Broadcom and Taiwan Semiconductor Manufacturing are potentially weighing bids that could result in splitting the embattled chipmaker.
The stock closed at $27.39 and notched its best day since March 2020.
The Wall Street Journal reported that Broadcom may consider a play for the company's chip design and marketing segment, citing people familiar with the matter, while TSMC is interested in a stake or complete control of Intel's factories. The companies have not filed bids and talks are largely informal, the Journal reported.
The iconic American chipmaker's stock has continued to sink lower in recent years, shedding billions in market value. Intel fell behind on the artificial intelligence tailwinds that have swept up the broader semiconductor sector.