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Key points
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A report late Friday that Qualcomm had recently made an “acquisition approach” to Intel sent the latter company’s shares soaring.
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Intel investors have read a number of reports about potential M&A activity this week, and the company appears to have ruled out some options.
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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 business.
Shares of chipmaker Intel (INTC) appeared in extended trading on Friday, boosted higher by a report that Qualcomm (QCOM) had made an “acquisition approach”.
The story in The Wall Street JournalCiting people familiar with the matter, he said Qualcomm recently made an approach to Intel for acquisition. The news sent Intel shares up about 4%. Qualcomm shares were largely unchanged after falling about 3% in the regular session.
In recent weeks, investors have considered a number of stories about potential transactions involving Intel, with Wall Street looking for signs that the company could be on track to raise fresh capital or shore up its business. Meanwhile, the company this week updated investors on its strategic plans and said the sale of its stake in Mobileye (MBLY) was off the table.
Qualcomm had been cited in some of those reports about Intel. However, an acquisition would be particularly dramatic: Intel’s market capitalization was recently around $90 billion.
Intel shares will fall more than 50% in 2024.
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