Intel Stock Rises on Acquisition Speculations

Intel Corp (NASDAQ: INTC) saw its stock price increase on Friday following reports that suggest the company may be a target for acquisition. This comes at a challenging time for Intel, as its stock has dropped an alarming 54% over the past year.

Charlie Demerjian, a journalist at SemiAccurate, reported based on an email hinting at a "resourceful" firm interested in purchasing Intel outright. However, the details about the identity of this potential acquirer and the financial terms of such a deal were not disclosed.

Intel's Chief Financial Officer, Dave Zinsner, acknowledged that the company may consider divesting its factory and product development divisions. Furthermore, Zinsner, along with Michelle Johnston Holthaus, stepped in as Intel's interim co-CEO after the board decided to terminate veteran chief Pat Gelsinger, whose attempts at turning the company around did not meet expectations.

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Benzinga has reached out to Intel for any comments and will provide updates once their response is received.

In contrast to industry giants like Nvidia and Taiwan Semiconductor Manufacturing Co, Intel has struggled to take advantage of the rapidly growing AI technology sector. Its efforts in the AI accelerator market have not been particularly successful, especially after its Gaudi chip failed to compete effectively with products from Nvidia.

Moreover, Intel has also lost ground in the PC gaming sector to Advanced Micro Devices, Inc (AMD).

Under Gelsinger's leadership, Intel underwent a restructuring process that included a reduction in staff during 2024.

Currently, Intel is planning to spin off its Altera chip division, with the intention of making it a publicly traded company. It retains ownership over Mobileye Global Inc (MBLY), an Israeli firm specializing in autonomous driving technology.

For 2024, Intel is also working to establish its foundry business as an independent entity.

Additionally, this week, Intel announced its plans to separate Intel Capital into an independent fund aimed at enhancing its capital-raising efforts and providing more operational independence. This division will operate under a new name by late 2025, with Intel expected to remain an anchor investor.

During the CES 2025 event, Intel presented an electric vehicle platform enhanced with AI and cloud technology. Notably, they secured contracts with companies like Stellantis (STLA), Stellantis Motorsports, and Karma Automotive.

For investors looking to invest in Intel, options include the Vanguard S&P 500 ETF (VOO) and the iShares Core S&P 500 ETF (IVV).

Forecast for Intel Stock in 2025

Equity research provides insights into a company’s fundamental performance. Analysts develop financial models based on the company's core fundamentals and potential future earnings to determine price targets and stock recommendations.

Currently, analysts project an average 1-year price target of $22.90 for Intel stock, which implies a potential upside of about 7.56%. However, analysts’ opinions can vary widely due to differing assumptions. Out of four analysts, three have bearish recommendations while one remains bullish. The highest price target, set by Northland Capital Markets, is $28.00, while the lowest target from Rosenblatt is $17.00.

Price Movement: As of the last check this Friday, Intel stock had risen by 8.47%, reaching $21.35.

Intel, Stock, Acquisition