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Shares of Intel Corp. (INTC, Financial) surged 8% on Friday morning after tech news outlet SemiAccurate reported that an unidentified company is looking to acquire the chipmaker in full.
The news comes as Intel shakes off a leadership transition. Pat Gelsinger stepped down as CEO on Dec 1, 2024, and retired after the board indicated it was not happy about the pace and cost of his turnaround strategy. Currently, Michelle Johnston Holthaus (Michelle Johnston Holthaus) and David Zinsner are interim co-CEOs of the company.
Along with leadership changes, Intel said it would spin off its venture capital arm, Intel Capital, into a standalone business. Going forward, the hope is to cut costs and appease scrutiny over investments in China. Intel will be an anchor investor, and the new fund is expected to commence operations in the latter half of the year.
The stock rose recently, but Intel has wrestled with steep declines in the past year, with shares down more than 58%. The company has not been able to keep up with rivals like Nvidia and TSMC -- especially in the AI semiconductor market. According to analysts, a new CEO could shift Intel's strategy, with the company perhaps eschewing its current foundry business.
This article first appeared on GuruFocus.