Shares of Intel Corp (NASDAQ:INTC, ETR:INL) soared 7.6% Friday morning following a report from the tech-focused newsletter SemiAccurate suggesting the chipmaking giant may be an acquisition target.
According to the report, an unnamed company is exploring the possibility of acquiring Intel in its entirety. SemiAccurate stated it had reviewed an email from two months ago detailing the potential acquisition and recently received confirmation of the plan from a "highly placed source."
The newsletter expressed "near certainty" that the plan is genuine and described the potential acquirer as having the resources to execute such a deal.
Once a leader in the semiconductor industry, Intel has faced mounting challenges in recent years. Its struggles to adapt to a rapidly evolving market have resulted in significant market share losses. Last year, the company's stock plunged 60%, reducing its market capitalization to roughly $85 billion. Adding to its woes, CEO Pat Gelsinger stepped down last month after the board reportedly lost confidence in his turnaround strategy.
While Qualcomm Inc (NASDAQ:QCOM, ETR:QCI) had reportedly discussed a potential acquisition of Intel earlier this year, SemiAccurate noted that Qualcomm has since shown less interest in pursuing the deal due to its complexity. However, reports suggest Qualcomm may still consider purchasing parts of Intel or even the entire company at a later date.
Intel declined to comment on the report. The identity of the potential buyer remains undisclosed.