Intel not inside anymore
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Intel's stock surge continued Tuesday, as investors welcomed the prospect that the company could be headed for a breakup.
Why it matters: Intel has struggled to keep up in the chip wars, while rivals like AI chip giant Nvidia turned into cash cows.
Between the lines: Intel shares are up 38% over the last week, having gained another 16% today after reports that Taiwan Semiconductor Manufacturing Company and Broadcom could make bids for part of the company.
- TSMC is said to potentially be interested in taking control of Intel's chip plants, WSJ reported.
- Broadcom is reportedly intrigued by the idea of acquiring Intel's chip design and manufacturing functions.
The intrigue: TSMC is considering the move "at the request of Trump administration officials," Bloomberg reported.
- Preserving and building American chip production is widely viewed as a national security issue.
Flashback: Intel announced plans in September to form a subsidiary for its ailing foundry business, which was seen as a possible move to facilitate a split.
Reality check: Any sale of Intel to a company with foreign ties could face political blowback, much like the proposed sale of U.S. Steel to Japan-based Nippon Steel faced bipartisan opposition.
- Officials "could be wary of a foreign entity completely taking over an iconic US firm that has deep involvement with US Department of Defense customers," Bank of America analyst Vivek Arya summarized today in a research note.
