Stock in Intel (INTC, Financial) rose 9.25% on Friday following reports another industry giant could buy the chipmaker. Pedal, a semiconductor analyst, said multiple indicators had converged at Mar-a-Lago: jet movements linking Qualcomm (QCOM, Financial) and GlobalFoundries (GFS, Financial), among others including Elon Musk. There were rumors swirling about the future of the company following Intel CEO Paul Gelsinger’s resignation this week.
The tech giant continues to be challenged with a loss of 69% since the April 2021 stock decline. Its foundry division, struggling to win customers, has lagged as cloud companies migrate their business from CPUs to Nvidia and other GPUs. Although Intel will spend $26 billion in 2023, its operating cash flow has fallen to $9.7 billion from $36 billion in 2020, which has exacerbated its financial difficulty.
Intel’s failure could present geopolitical risks, according to industry insiders, because it builds U.S. chip production. Intel is desperate, and a buyout might save the company.
This article first appeared on GuruFocus.
The tech world is abuzz with rumors of a potential buyout of Intel, with some major players reportedly interested in acquiring the semiconductor giant. According to sources, Elon Musk’s Tesla and Qualcomm are among the frontrunners in talks to potentially take over Intel in what would be a blockbuster deal.
Intel, which has been facing increased competition in the semiconductor market, saw its stock price soar amid the buyout rumors. Shares of the company surged by over 10% as investors speculated on the potential takeover bid.
While neither Tesla nor Qualcomm have officially confirmed their interest in acquiring Intel, industry experts believe that a deal could make sense for both companies. Tesla, which is looking to expand its presence in the tech industry, could benefit from Intel’s expertise in semiconductor manufacturing. On the other hand, Qualcomm, a major player in the mobile chip market, could leverage Intel’s technology to strengthen its position in the industry.
As the rumors continue to swirl, it remains to be seen whether a deal will materialize. However, one thing is certain – Intel’s future is looking brighter than ever as it finds itself at the center of takeover talks involving some of the biggest names in tech. Stay tuned for more updates on this developing story.
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