The beginning of rally or falsification? News ad

Shares of a significant semiconductor giant Intel NASDAQ: IntC Last week, more than 30% increased by the closure of February 18. This is primarily due to rumors that Intel can sell most of his business to two semiconductor hippos. President Trump was reported that he planted a seed for this idea. So, the growth of Intel is a sign that everything can do for this reserve, or is it due to encouraging optimism without remaining power?

Below I describe in detail rumors about numerous rumors associated with the Taiwanese production of semiconductors NYSE: TSMBroadcom NASDAQ: AVGOand intel. I also shed light on the comments made by the Vice President JD Wanses that started a rally.

Breaking comments JD Vance

A large rally in Intel’s shares began after the comments made by Wance at the AI ​​ACT summit in Paris. He made several statements confirming a deregulating approach to artificial intelligence. Nevertheless, an especially important commentary for Intel surrounded the production of chips.

Vance said: “The Trump administration will ensure that the most powerful AI systems are built in the United States with American and industrial chips.” This has great positive consequences for Intel. OTCMKTS: SSNLF build advanced production capacities in the United States; However, they remain foreign companies.

In general, if Trump wants an American company to produce chips with an advanced knot, Intel is really the only game in the city. However, Intel capabilities are currently limited in this regard.

TSMC and Broadcom are involved

Promotions continued to grow in the following days. The Wall Street Journal reported that Taiwan Semiconductor Manoufactoring and Broadcom are considering buying various parts of Intel business. Broadcom “Carefully studies Intel’S-Design and marketing business.” Field

For Intel, a transaction of this kind will be good for the company. Analysts have long been arguing that the gap of their foundry business, which has lost money, will increase the value of the rest of his business. This comes from the idea that the “sum of parts” is more valuable than the combined Intel business. However, there are many problems with the actual feasibility of such a transaction.

Intel absorption negotiations: mired in political obstacles and uncertainty

Firstly, it is somewhat unclear what Trump’s administration wants from this transaction. The consideration of such a TSMC transaction, by the same, came at the request of the administration. Nevertheless, the White House official also said that “the president is unlikely to support a foreign organization managing Intel factories.” It is difficult to understand how TSMC can make Intel competitive in AI without it. However, some type of “investor consortium” can make Intel competitive. However, some type of “investor consortium” can make Intel competitive. However, some type of “investor consortium” can make Intel competitive. However, some type of “investor consortium” can make Intel competitive. Where TSMC significantly invests in Intel, but does not work, it may be an answer.

In addition, the transaction will almost require approval of both Chinese and US government. Given the tense relationship between the two countries, especially in relation to semiconductors, this seems high as a high order.

From the point of view of TSMC, the transaction will mean help in saving a competitor. They appreciate the gaining favor in the United States, but is it worth risking their most important monopoly in the expanded space of chips? TSMC has more customers in the United States than in China. However, the company wants to maintain good relations with both countries.

For Broadcom, one analyst noted that the Intel product line can be additional and will make the company a leader in the field of processors. He also has a strong history of integration of other companies, as evidenced by the extremely successful purchase of VMware. Nevertheless, the acquisition of Intel product will probably be the largest transaction in the history of the company. It would be difficult for a company with debts of $ 69 billion and only $ 9 billion in cash on balance.

In general, this remains a liquid and very uncertain situation, in my opinion. The Trump administration clearly wants to support Intel, but this deal, uniting, seems unlikely. Nevertheless, negotiations are early, and this can lead to something more reasonable over time. Just as Intel shares rose along these rumors, they could fall if rumors that the transaction would not happen. At the moment, I would not be too excited that the recent surge of Intel has turned into much more than simple.

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