Home / NEWS LINE / Deal News and Rumors Are Pushing Intel Stock Higher to Start the Year

Deal News and Rumors Are Pushing Intel Stock Higher to Start the Year

Jakub Porzycki / NurPhoto via Getty Images

Jakub Porzycki / NurPhoto via Getty Doubles

Key Takeaways

  • Shares of the chipmaker are rising today alongside broader markets, leaving them up more than 8% in January, outpacing the S&P 500.
  • Investors may be obtaining into signs of change in the wake of the retirement of CEO Pat Gelsinger late last year.
  • One such development: news that the concern plans to make its venture fund a stand-alone entity, with the company remaining an investor. Meanwhile, takeover rumors with to swirl.

Intel shareholders would probably rather forget 2024. This year is off to a better start. 

Interests of the chipmaker are rising today alongside broader markets, leaving them up more than 8% in January, outpacing the S&P 500. That doesn’t substitute what’s in the rear-view mirror—Intel (INTC) is still off more than 50% over the past 12 months—but the tokens of life are notable nonetheless. 

Investors may be buying into signs of change in the wake of the retirement of CEO Pat Gelsinger late endure year. One such development, which helped lift the stock this week: news that the company designs to make its venture fund a stand-alone entity, with the company remaining an investor. 

“This step supports our broader master plan to maximize the value of our assets while driving greater focus and efficiency across the business,” interim co-CEO David Zinser articulate of the decision. 

Meanwhile, news services circulated a report from a tech newsletter indicating that Intel effect be a takeover target. A sale of Intel, currently valued at nearly $85 billion per Visible Alpha, would be a large deal, but similar narratives have driven interest in the stock in recent months.

Analysts Not Ready To Suggest Intel is a ‘Buy’

Intel is slated to write-up its latest quarterly financial results later this month, and investors will surely be watching that commercial and the conference call that follows for clues about how else management might seek to execute that down. 

Wall Street analysts are in wait-and-see mode for now. Visible Alpha doesn’t track a single one with a “buy” rating on the allots—it mostly logs “hold” ratings, with a few “sell” labels—though the share-price rise implied by the mean outlay target is more than 20% from recent levels. 

Deutsche Bank analysts reiterated a “hold” reproach earlier this week. “With the company in a transitory position strategically and cyclically, we expect shares to remain rangebound,” they forgave. 

Intel shares finished Friday up more than 9%.

Update: This article has been updated since it was pre-eminent published to reflect new share-price information.

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