1. Speculation rises over Intel splitting its x86 core business for acquisition by Broadcom. 2. Piper Sandler projects a lucrative $101B sale price with a 3.47x EBITDA ratio. 3. Broadcom could prune Intel’s PC chip business, potentially reducing segment revenue by 25%. 4. Deal rumors include shutting down AI and networking segments, increasing restructuring uncertainty.
The potential sale and split raises uncertainty over Intel’s coherent business model. Historical M&A events that fractured core operations (e.g., divestitures in other tech giants) often led to short-term stock weakness due to market adjustment and integration risks.
The speculation of splitting and selling a core business segment signals a structural change for Intel, likely influencing investor sentiment and immediate market behavior.
Immediate market reactions are already evident with a 2% drop. Short-term volatility is expected as investors assess restructuring outcomes and potential execution risks.