A late Friday takeover report sends Intel’s stock price soaring

Key Points

• A report Friday evening that Qualcomm recently made a “takeover attempt” on Intel sent the latter company’s shares soaring.

• Intel investors have been seeing a flurry of reports this week about potential merger and acquisition activity, with the company apparently shelving a number of options.

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

Shares of chipmaker Intel (INTC) rose in extended trading on Friday, lifted by a report that Qualcomm (QCOM) had chosen a ‘takeover approach’.

The story in The Wall Street Journalciting people familiar with the matter, said Qualcomm recently made a takeover attempt on Intel. The news sent Intel shares up about 4%. Qualcomm’s was little changed, after falling nearly 3% in the regular session.

Investors have been weighing a series of stories about potential deal activity involving Intel in recent weeks, with Wall Street looking for signs that the company is moving to raise new capital or bolster its operations. The company updated investors this week on its strategic plans, saying that a sale of its stake in Mobileye (MBLY) was off the table.

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

Intel shares are down more than 50% through 2024.

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