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Intel Stock Rises as Suitors Circle

Apollo and Qualcomm are looking at Intel as a possible investment, buyout target

Managing Editor
Sep 23, 2024 at 10:36 AM
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Intel Corp (NASDAQ:INTC) is back in the spotlight for another week. The U.S.-based chipmaker is up 2.3% to trade at $21.84, after Bloomberg reported the company was an investment target of Apollo Global Management (NYSE:APO), with the asset management giant making an offer of $5 billion. Another suitor is lurking though; over the weekend, the Wall Street Journal reported sector peer Qualcomm Inc (NASDAQ:QCOM) had approached Intel about a possible takeover. APO and QCOM are up 0.6% and 0.1% this morning, respectively. 

APO was last seen trading at $125.32, a chip shot from its July 31 record high of $126.45. The shares are up 34.5% in 2024. QCOM was last seen trading at $169.43, and has shed 27% off its June 18 record high of $230.63. 

For those keeping score at home, Intel has trimmed its subsidiary businesses, received a government grant, cut 15,000 jobs, suspended its dividend, missed second-quarter earnings, and whiffed on its guidance for the year; all since August. The shares have taken a 27.3% haircut this quarter alone and are down 55.2% year-to-date.

Today's gains have INTC breaking out of a bear flag pattern since a 26.1% post-earnings gap lower on Aug. 2. All of Wall Street is waiting on Intel's outcome; 30 of the 36 brokerages in coverage are maintaining "hold" ratings, at the moment. 

Intel options bulls are coming out of the woodwork today. In just the first hour of trading, over 124,000 call contracts have changed hands, volume that's more than triple the number of puts traded. The weekly 9/27 23-strike call is the most popular, while there's also sell-to-open activity at the October 35 call. 

 

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