{"id":97870,"date":"2025-02-19T18:04:34","date_gmt":"2025-02-19T18:04:34","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/finance\/start-of-a-rally-or-a-fakeout\/"},"modified":"2025-02-19T18:04:34","modified_gmt":"2025-02-19T18:04:34","slug":"start-of-a-rally-or-a-fakeout","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=97870","title":{"rendered":"Start of a Rally or a Fakeout?"},"content":{"rendered":"


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Intel Stock Forecast Today<\/h3>\n
12-Month Stock Price Forecast:<\/span>
$26.88<\/span>
3.96% Upside<\/span>Reduce<\/span>
Based on 32 Analyst Ratings<\/span><\/div>\n\n\n\n\n\n
High Forecast<\/th>\n$62.00<\/td>\n<\/tr>\n
Average Forecast<\/th>\n$26.88<\/td>\n<\/tr>\n
Low Forecast<\/th>\n$20.00<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Intel Stock Forecast Details<\/a><\/div>\n<\/div>\n<\/div>\n

Shares of the much-maligned\u00a0semiconductor<\/a> giant Intel NASDAQ: INTC<\/span><\/a> have jumped over 30% in the past week as of the Feb. 18 close. This is primarily due to rumors that Intel could sell off large parts of its business to two semiconductor behemoths. President Trump reportedly planted the seed for this idea. So, is the rise in Intel shares a sign that things could be turning around for this stock, or is it driven by hopeful optimism without staying power?<\/p>\n

Below, I\u2019ll detail the much-talked-about rumors involving Taiwan Semiconductor Manufacturing NYSE: TSM<\/span><\/a>, Broadcom NASDAQ: AVGO<\/span><\/a>, and Intel. I\u2019ll also shed light on comments made by Vice President JD Vance that kicked off the rally.<\/p>\n

Breaking Down JD Vance\u2019s Head-Turning Comments<\/h2>\n

The big rally in Intel shares started after comments made by Vance at the AI Action Summit in Paris. He made several statements supporting a deregulatory approach to artificial intelligence. However, the particularly important comment for Intel surrounded chip manufacturing.<\/p>\n

Vance stated<\/a>, “The Trump Administration will ensure that the most powerful AI systems are built in the U.S. with American-designed and manufactured chips.\u201d This has large positive implications for Intel. Intel is essentially the only advanced-node chip manufacturer based in the United States. These are the types of chips needed for AI<\/a>. TSMC and Samsung Electronics OTCMKTS: SSNLF<\/span><\/a> are building advanced manufacturing facilities in the U.S.; however, they remain foreign companies.<\/p>\n

Overall, if Trump wants a U.S.-based firm to manufacture advanced-node chips, Intel is really the only game in town. Still, Intel\u2019s capabilities in this respect are currently limited.<\/p>\n

TSMC and Broadcom Get Involved<\/h2>\n

Shares kept rising in the days that followed. The Wall Street Journal reported<\/a> that Taiwan Semiconductor Manufacturing and Broadcom are both considering purchasing different parts of Intel\u2019s business. Broadcom is \u201cclosely examining Intel\u2019s chip-design and marketing business.” It could make an offer for it, but only if another company overtakes Intel\u2019s manufacturing arm. That is where TSMC could step in; however, the two firms are not working in concert.<\/p>\n

For Intel, a deal of this sort would be a boon to the company. Analysts have long argued that breaking off its money-losing foundry business would add value to the rest of its business. This comes from the idea that the “sum of the parts” is more valuable than the combined Intel business. Still, there are many problems with the actual feasibility of such a deal happening.<\/p>\n

Intel Takeover Talks: Mired in Political Hurdles and Uncertainty<\/h2>\n

First off, it’s somewhat unclear what the Trump administration wants out of this deal. The consideration of such a deal by TSMC apparently came at the request of the administration. However, a White House official also said that \u201cthe president is unlikely to support a foreign entity operating Intel\u2019s factories.”<\/a> It is hard to see how TSMC can make Intel competitive in AI without this happening. However, some type of \u201cinvestor consortium\u201d where TSMC invests significantly in Intel but doesn\u2019t operate it could be an answer.<\/p>\n

Additionally, a deal would nearly require approval from both the Chinese and United States governments. Given the tense relationship between the two countries, especially over semiconductors, this seems like a tall order.<\/p>\n

From TSMC\u2019s perspective, the deal would mean helping to save a floundering competitor. They value gaining favor with the United States, but is it worth risking their essential monopoly in the advanced chip manufacturing space? TSMC has more customers in the United States than in China. Still, the company wants to maintain good relationships with both countries.<\/p>\n

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Intel Co. (INTC) Price Chart for Wednesday, February, 19, 2025<\/h3>\n