Intel's Stunning Comeback! Stock Jumps 40% YTD on Takeover Rumors

Intel was the biggest loser in 2024. The rise of AI-driven GPU demand propelled Nvidia to the top, leaving Intel behind as the biggest casualty. Over the course of the year, Intel's stock plunged 60%, making it the worst-performing tech giant of 2024.

But 2025 has brought a dramatic turnaround. Year-to-date, Intel's stock has surged nearly 40%, significantly outperforming the Magnificent 7's average gains. On Tuesday alone, the stock jumped 16%, fueled by buyout rumors.

Acquisition Rumors Drive Intel's Rebound

According to The Wall Street Journal, two semiconductor giants, Broadcom and TSMC, are considering separate takeover bids for Intel, which could result in breaking the company into two new entities.

Broadcom has been closely evaluating Intel's chip design and marketing unit but is seeking a partner to take over Intel's chip manufacturing business before making a move.

TSMC has studied the possibility of acquiring some or all of Intel's chip plants, either independently or as part of an investor consortium, according to sources familiar with the discussions.

Broadcom and TSMC are not working together. And Intel itself has already started separating its chip foundry operations—a move some analysts see as a precursor to a full breakup.

If both acquisition deals were to go through, Intel as we know it would cease to exist, transitioning into two separate companies. This move would align with the semiconductor industry's broader trend—companies now specialize either in chip manufacturing or chip design, but not both. The newly restructured Intel would likely become a semiconductor design firm, resembling Broadcom, Marvell, or AMD. 

Wall Street analysts generally view the split as a value-unlocking opportunity. Raymond James analyst Srini Pajjuri stated: In our view, splitting Intel Product and Foundry is the key to unlocking value.

Another Deal in the Works: Intel's Altera Unit

Beyond the potential Broadcom and TSMC acquisitions, Bloomberg reported that Silver Lake Management is in exclusive talks to acquire a majority stake in Altera, Intel's programmable chip division.

Intel had initially explored selling part of Altera in November 2024 as part of a self-rescue strategy, but the deal fell through due to low bids from potential buyers. Now, Silver Lake's interest has revived discussions, adding to the growing speculation around Intel's restructuring efforts.

Challenges to the Deals

Despite these takeover rumors, nothing is finalized. Interim CEO Frank Yeary has repeatedly emphasized that his primary focus is maximizing value for Intel shareholders, meaning the company will push hard to complete these transactions. However, sources caution: Nothing has been submitted to Intel yet, and Broadcom may ultimately decide against making an offer.

A TSMC acquisition of Intel's foundries faces significant geopolitical challenges. The Trump administration is likely to oppose a foreign company taking control of Intel's U.S.-based manufacturing facilities. A White House representative stated last week: President Trump would be unlikely to support a foreign entity operating Intel's factories.

TSMC itself also has concerns, particularly regarding the Trump administration's strict immigration policies. If Taiwanese engineers face difficulties obtaining U.S. work visas, it could hinder TSMC's ability to manage Intel's factories.

Additionally, operational challenges remain. Intel's factories were originally designed for producing its own chips, and only recently has the company begun offering foundry services for external clients. Converting these facilities into a full-fledged contract foundry, like TSMC's model, would be a complex and costly undertaking.