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Key Takeaways
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A late-Friday report that Qualcomm recently made a “takeover approach” to Intel sent the latter company’s shares higher.
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Investors in Intel have read a raft of reports about possible M&A activity this week, with the company seemingly taking some options off the table.
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Intel shares have lost more than half their value since the start of the year amid concerns about the chipmaker’s ability to turn around the business.
Shares of chipmaker Intel (INTC) popped in extended trading Friday, pulled higher by a report that Qualcomm (QCOM) had made a “takeover approach.”
The story in The Wall Street Journal, citing people familiar with the matter, said Qualcomm recently made a takeover approach to Intel. The news sent Intel’s stock up about 4%. Qualcomm’s was little changed, after falling close to 3% in the regular session.
Investors have in recent weeks considered a raft of stories about possible deal activity involving Intel, with Wall Street looking for signs that the company might be on a path to raising fresh capital or shoring up its businesses. The company this week, meanwhile, updated investors about its strategic plans and said a sale of its stake in Mobileye (MBLY) was off the table.
Qualcomm had been cited in some of those Intel reports. A takeover, however, would be particularly dramatic: Intel’s market capitalization was recently about $90 billion.
Intel’s shares are down more than 50% in 2024.
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