Intel’s stock price surged nearly 9% on Friday as rumors of a potential takeover reignited investor excitement. The technology news site SemiAccurate claimed to have reviewed and confirmed an email detailing an acquisition bid for the entire company.
This is not the first time Intel has been involved in takeover talks. In September, Qualcomm reportedly considered acquiring the company, but the idea was later dismissed. J.P. Morgan analyst Christian Crosby believes that Intel’s shares should be seen as a reflection of its recent struggles, including a 54% decline over the past year and the departure of its CEO.
However, Crosby notes that Intel is undergoing significant transformations to become a major player in integrated chip design and manufacturing. The company has sold off non-core assets like Altera and separated its venture capital arm. Qualcomm remains a potential suitor, as its acquisition would help diversify Intel’s operations and bolster its competitive edge.
Some analysts have also speculated that Elon Musk, owner of Tesla, SpaceX, and xAI, might be interested in acquiring Intel due to the company’s semiconductor expertise. However, Crosby argues that Musk’s other ventures have more financial firepower, making a deal with Intel less likely to be strategic.
As of now, Wall Street analysts have a Hold (Neutral) consensus rating for Intel, with an average price target indicating upside potential of around 14%.
Source: https://www.tipranks.com/news/j-p-morgan-weighs-in-on-intel-stock-amid-takeover-rumors