Intel (INTC, Financials) stock rose 9.25% on Friday after reports that the industry giant could acquire Intel. Semiconductor analyst Pedal said multiple indicators had converged at Mar-a-Lago, particularly the jet movement between Qualcomm (QCOM, Financial) and GlobalFoundries (GFS, Financial), including Elon Musk. He said there was. The resignation of Intel CEO Paul Gelsinger this week sparked rumors about the company’s future.
The tech giant continues to be challenged with losses of 69% since the April 2021 share price drop. As cloud companies shift their business away from CPUs and toward Nvidia and other GPUs, the company’s foundry division has struggled to attract customers and has lagged behind. Intel plans to spend $26 billion in 2023, but its operating cash flow has fallen to $9.7 billion from $36 billion in 2020, worsening its financial woes.
Industry sources say Intel’s failure could pose geopolitical risks because Intel produces chips in the United States. Intel is desperate and a buyout might save the company.
This article first appeared on GuruFocus.
