A Jump of Intel: Episode II
As most Wall Street stocks are only hovering near record highs, reluctant to take extra steps up under global tariff threats, some equities noted in our previous reports are making headway. In particular, the dizzying success of Intel Corporation (INTC) becomes so clear, following a new U.S. regulatory landscape. In a tariff-driven domestic frame, a recent pledge by Donald Trump's vice president JD Vance for a stepped-up push to support the nationally-oriented chip manufacturers raised the market price of Intel from just $20 to $25 per share in a few days over the past week. Now, to this initial 25% jump, another 16% has been added within one trading session on February 18. When touching the next $27.5 mark, Intel continues to shine on news about potential splitting this large business in two.
Wall Street Journal and Bloomberg reported after the long weekend that the other two semiconductor flagships, Broadcom (AVGO) and Taiwan Semiconductor Manufacturing (TSM) were exploring the prospects of the deal. Broadcom, which is a worldwide specialist in designing and developing solid-state components for a lot of chip-based technologies, including its role in common efforts for Apple's chip Baltra for new iPhones after 2026, seems to be trying to acquire Intel's chip-design segment and its marketing operations. Meanwhile, the chip giant of Taiwan is considering controlling stake in Intel factories. A possible partnership between Broadcom and Taiwan Semiconductor in dividing Intel was noted by several whistleblowers. White House plans to boost U.S. chip production may create legal guarantees and also expedite a possible approval for the deal.
TSM already has its fabrication facility in the state of Arizona, which it officially plans to expand "in the coming years". That's why TSM could be very receptive to such a deal, if Trump's administration would make preferences for producing U.S.-designed chips on United States soil. There could be only two obstacles. First, negotiations are probably in early stages. Trump could have objections to the concept of letting a foreign entity control U.S.-based chip factories. But he supposedly has no big choice on financing domestic chip production, taking into consideration that Intel was too weak in recent decades, lagging behind AI grands.
The U.S. new government may be ready to push for TSM to support Intel, as the Republicans need production expansion in the U.S. to show the success in creating jobs and adding the market value to the company, which was declining for years. TSM could even avoid import tariffs in this case. It is only unclear whether these plans will include Intel. Anyway, those stockholders who had responded to our call after the start of Intel's surge last week have already made at least 20%, and can now make a calm and informed choice on whether to take profits or wait beyond a reasonable $50 per share target that looks likely if all the deal leaks later materialize.
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