Intel Corp (NASDAQ:INTC, ETR:INL) shares surged almost 10% after the Wall Street Journal reported that competitors Broadcom Inc (NASDAQ:AVGO, ETR:1YD) and Taiwan Semiconductor Manufacturing Co (ADR) (NYSE:TSM) (TSMC) are exploring potential bids for Intel which would split up the company.
The news led chipmaker stocks higher on Tuesday amid speculation about potential acquisition deals.
Broadcom is interested in acquiring Intel's chip design services, while TSMC is considering a deal for its manufacturing facilities.
The talks are preliminary and informal, per the report.
Intel's stock jumped significantly in early trading on the news, after falling almost 60% in the past year due to operational challenges.
Shares of Intel added 9.6% on Tuesday morning, boosting other chipmakers like Nvidia, Advanced Micro Devices and Qualcomm, which added 1.3%, 0.9% and 0.3%, respectively.
The rise in Intel's stock also follows comments from US Vice President JD Vance, suggesting that the administration is committed to ensuring that AI chips are produced domestically.
Broadcom shares were down 2.2% while TSMC fell 1.3% on Tuesday morning.