A late Friday takeover report is weighing on Intel stock

Key recommendations

• A report late Friday that Qualcomm recently made a “takeover approach” to Intel sent the latter company’s stock soaring.

• Investors in Intel have been reading a number of reports of possible M&A activity this week, with the company appearing to drop some options.

• Intel shares have lost more than half their value since the start of the year amid concerns about the chip maker’s ability to turn around its business.

Shares of chipmaker Intel (INTC) appeared in extended trading on Friday, pulled higher by a report that Qualcomm (QCOM) had made a “takeover approach”.

The story in The Wall Street Journalciting people familiar with the matter, said Qualcomm recently made a takeover approach to Intel. The news sent Intel stock up about 4 percent. Qualcomm was little changed after falling nearly 3% in the regular session.

Investors have weighed in on a series of potential deal stories involving Intel in recent weeks, with Wall Street looking for signs that the company may be on the way to raising new capital or shoring up its businesses. Meanwhile, this week the company briefed investors on its strategic plans and announced the sale of its stake in Mobileye (MBLY) was outside the table.

Qualcomm was cited in some of those Intel reports. A takeover, however, would be especially dramatic: Intel’s market cap was recently around $90 billion.

Intel shares are down more than 50% in 2024.

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