Intel Stock Very High after New Chief Executive Appointment
Since Tuesday, shares of Intel (INTC) stock have been swinging upward quickly, now up 13.73% for Thursday in premarket trading after a new chief executive was named and speculation of a split continues.
Intel Corp. was rumored to be splitting into two separate entities to be bought up by rival businesses, and that rumor mill is moving into overdrive now that a new chief executive has been named. That would be Lip-Bu Tan, who is a longtime industry veteran and chairman of venture capital firm Walden International.
The chip maker Intel has been struggling for some time, facing fierce competition from Nvidia and others that have dominated the AI technology market. In recent weeks, there has been exceptional interest in Intel, though, since industry insiders have been talking about a possible buyout by Taiwan Semiconductor (TSM).
The rumor had included a partial buyout by Broadcom (AVGO), but the company turned down that idea recently. The CEO Hock Tan said that he was too busy and too involved in AI investments at the time to try to acquire any part of Intel Corp.
Should Investors Jump on Intel?
Intel stock has been doing well lately, but there is no guarantee that they will be bought up by TSM or any other tech company. Over the past few years, Intel’s stock value has shifted downward. Three years ago, it was priced at $47, and it is now down to $24.12. Even with the recent spikes created by buyout rumors, the stock price is far below where it was a few years ago.
The company’s long-term prospects do not look promising based on how it will perform on its own. But if the company were to be bought out, we could see another price spike. The stock could then be absorbed into the buyer or could continue to stand alone. Investors will have to take their chances with this one, but it could be one of the biggest earners on the market in the coming months.
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