Intel Share Price News: Chipmaker stock skyrockets. Here is what investors are cheering

Intel shares listed on the US stock exchange ended Tuesday's session higher by over 16 per cent at $27.39, while in intra-day trade it hit the day's high price of $27.55 and day low of $24.49 per share. The latest spike marks the biggest single-day gain since March 2020 and came following a report that the chip-making company's rivals Taiwan Semiconductor Manufacturing Co (TSMC) and Broadcom each are eyeing potential deals that would split the chipmaker into two.

Broadcom and TCMC's proposed deals with Intel

As per a Wall Street Journal report released late Saturday Broadcom is considering bidding for Intel's product business that is into designing semiconductors for computers and servers. Furthermore, as per the report which quoted people familiar with the development, said that TCMC has been eyeing controlling some or all of the company's factories.  Pertinently, the companies have not submitted the formal proposal to Intel and the talks are at the initial stage, noted the Journal.

On the development, Broadcom shares ended Tuesday's session lower by 2 per cent at $228.53, while TSMC shares ended with a cut of 0.45 per cent. 

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Intel stock on a tear amid US support for domestic chipmaking

Last Friday, the stock recorded its biggest weekly gain in the last 5 years after news emerged that the US government was purportedly in discussions with TSMC to aid Intel's turnaround efforts, and also the US signalled support for domestic chipmaking. From the close at $19.1 on February 7, the stock gained up to $23.6 as on February 14, marking a gain of nearly 24 per cent.

Chipmaker struggles in its turnaround journey so far

Apart from the company's manufacturing business which is into chip-making for itself, Intel also launched a foundry in 2022 under the then CEO Gelsinge competitive with Taiwan's TSMC for reviving the company's manufacturing division, which has been struggling since the mid-2010s.The turnaround effort at the leading chipmaker has failed thus far as the company's manufacturing division continues to incur financial losses. Also, at the same time, the company is facing difficulty in attracting outside clients.

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Intel's share price performance

After a weak set of earmings in 2024, the stock slumped as much as 60 per cent last year, while on a year-to-date basis it has gained over 35 per cent.