Intel has been in an extended downtrend since late 2023. In that time, the price of Intel stock (NASDAQ: INTC) dropped from a peak of $50.25 in December of 2023 to $25.93 at press time on February 18, 2025.
However, despite that 48.39% loss, there are a couple of silver linings appearing as of late. Over the course of the last 5 trading days, the price of Intel stock has increased by 30.18% — and 10.59% of those gains occurred during the last 3 trading days.
So, what sort of bullish catalyst could have caused this turnaround? Intel has been in a painful restructuring process for the past 3 years — and while it has failed to make significant headway, recent rumors suggest that the company could be split into two parts.
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Intel stock rises as TSMC and Broadcom reportedly eye separate divisions
Two semiconductor companies — TSM and Broadcom are reportedly in separate talks to acquire Intel’s manufacturing business and chip design and marketing segment, respectively, as first reported on Saturday, February 15, by The Wall Street Journal’s Asa Fitch, Lauren Thomas, and Yang Jie.
In addition, the Journal’s article states that while Broadcom had discussed the matter with advisors, it would only move forward if it found a partner for Intel’s manufacturing business.
Interestingly enough, both TSMC stock (NYSE: TSM) and Broadcom stock (NASDAQ: AVGO) reacted negatively to the news, marking a 0.98% and 2.41% loss on the daily chart, respectively.
Although nothing has yet been announced, and reports suggest that only a joint solution could even possibly come into play, eminent Wall Street firm Cantor Fitzgerald believes that the split is inevitable. Matthew Prisco, one of Cantor’s semiconductor equity researchers, recently upped his price target on Intel stock from $22 to $29 and reiterated an earlier ‘Neutral’ rating. If met, his price forecast would equate to an 11.83% upside.
While he referred to the situation as extraordinarily complex, in a research note, the analyst told investors that he believed the split to be a done deal. Further clarifying, Prisco opined that a deal with TSMC was the most likely solution — and that it would most likely take the form of the company’s earlier joint ventures with the likes of Bosch, Infineon, and NXPI.
Featured image via Shutterstock
