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Asif Mohammad Sovon

Meet Asif Mohammad Sovon, an IT Assistant in the Bangladesh Air Force and a tech writer for Fileion....

Joined February 2025

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Feb 19, 2025

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Chip Industry Shakeup: Intel's Potential Split Sparks Stock Market

Intel Corporation is facing its stock fluctuations by more than 10% on Tuesday, reaching $26.06, due to reports that semiconductor giants Broadcom Inc. and Taiwan Semiconductor Manufacturing Company are exploring deals that could split Intel’s business.

Broadcom and TSMC’s Interest in Intel

Reports from The Wall Street Journal and Bloomberg suggest that Broadcom and TSMC have held informal talks regarding a potential acquisition of different divisions of Intel’s operations. Broadcom is evaluating Intel’s product business. On the other hand, TSMC is reportedly interested in managing Intel’s U.S. manufacturing plants. However, no formal offers have been made, and discussions remain in the early stages.

Market Reaction and Stock Performance

The news ignited investor optimism, driving Intel’s stock up 10.3% to $26.03, marking its highest single-day gain since 2023. Conversely, Broadcom shares dipped by 2.3% to $227.74, while TSMC’s U.S.-listed shares fell by 1.4% to $201.06.

Intel Stock Performance Summary :

Date	Stock Price (USD)	% Change	Event/News Impact
Feb 14, 2025	$23.30	-	Pre-rumors phase
Feb 18, 2025 (Morning)	$25.84	+9.47%	Rumors of Broadcom & TSMC deal surface
Feb 18, 2025 (Peak)	$26.24	+11%	Intel stock surges on breakup speculation
Feb 18, 2025 (Closing)	$26.06	+10.42%	Investors react to possible Intel split

Intel vs. Competitors - Stock Performance: on Feb 18, 2025

Company	Stock Price Change (%)
Intel (INTC)	+10.42%
Broadcom (AVGO)	-2.36%
TSMC (TSM)	-0.98%

Challenges to a Potential Intel Split

Separation of Intel’s products and businesses could unlock shareholder value, but several limitations remain. Analysts highlight regulatory approvals, operational complexities, and geopolitical concerns as key challenges. The U.S. government’s perspective on allowing foreign entities to control Intel’s manufacturing operations could also impact negotiations.

Raymond James noted -

"Splitting Intel’s Product and Foundry businesses is the key to unlocking value.However, regulatory roadblocks and geopolitical factors make this a complex endeavor."

What’s Next for Intel?

As the assumption continues, investors are closely monitoring any official developments regarding potential changes. Any deal involving Broadcom or TSMC could significantly reshape the semiconductor industry, changing the competitive landscape for Intel and its opponents.

For now, Intel’s stock remains on an upward trajectory, with the market awaiting further clarity on whether these talks will set into formal acquisition offers.

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