Intel Logs Biggest Single-Day Gain In Two Years On Broadcom-TSMC Deal Speculation – Analysts Split, But Retail Turns Bullish

Intel (INTC) stock jumped more than 10% on Tuesday, marking its biggest single-day gain in two years, after reports indicated a potential separation of its chip design and foundry businesses.

A Wall Street Journal report over the weekend stated that Broadcom (AVGO) and Taiwan Semiconductor Manufacturing Co. (TSMC) (TSM) are considering bids for portions of Intel’s operations.

Broadcom’s bid is reportedly focused on Intel’s chip design unit, while TSMC is said to be evaluating a deal for Intel’s chipmaking factories

According to The Fly, Cantor Fitzgerald raised its price target on Intel to $29 from $22 while maintaining a ‘Neutral’ rating. 

The brokerage stated that while Intel’s situation remains “extraordinarily complex,” reports indicate the DesignCo-Intel Foundry Services split is essentially a “done deal.” 

Cantor expects TSMC to participate, but only under conditions favorable to its business model. 

The brokerage pointed to TSMC’s joint venture with Bosch, Infineon, and NXP as a possible framework for any possible Intel deal.

Wells Fargo analysts took a more cautious stance. The brokerage noted that while speculation about a TSMC and Broadcom-led separation has gained traction, the key question is whether Intel can unlock more value than its current $125 billion enterprise valuation. 

Wells Fargo remains skeptical but acknowledged that any move toward a deal could be a net positive for Intel.

Intel Sentiment and Message Volume on Feb.18 as of 1:10 p.m. ET | Source: Stocktwits

On Stocktwits, retail sentiment around Intel edged higher into the ‘extremely bullish’ zone accompanied by ‘high’ levels of chatter.

One user noted that technical indicators look promising despite Intel’s prolonged downtrend.

Another argued that a complete breakup remains unlikely, but a restructuring could still be in play.

Intel shares plunged in August 2024 after weak second-quarter earnings, disappointing guidance, the elimination of its dividend, and a restructuring plan that included laying off at least 15% of its workforce. 

The stock is still down more than 40% over the past year but has gained 28% in 2025 as investors reassess its turnaround potential.

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