Intel (INTC) shares are set to remain in the spotlight Tuesday following reports that Broadcom (AVGO) and Taiwan Semiconductor Manufacturing Co. (TSMC) are exploring bids for parts of the chipmaker. According to The Wall Street Journal, Broadcom is interested in Intel’s chip-design and marketing division, while TSMC is considering acquiring Intel’s chip plants, possibly through a consortium.
Intel Rallies on AI Policy Support
Last week, Intel stock surged over 20% after Vice President JD Vance emphasized that the Trump administration aims to ensure AI chips are designed and manufactured in the U.S. This policy stance could strengthen Intel’s foundry business, which manufactures chips for third parties.
Further speculation of a potential partnership between Intel and TSMC to produce chips in the U.S. also buoyed investor sentiment. However, despite these gains, Intel shares remain down nearly 50% over the past year, as concerns persist over the company’s turnaround strategy and its struggles in the AI silicon market.
Technical Outlook: Key Levels to Watch
Intel’s stock appears to be forming a rectangle bottom pattern, having traded in a range since a sharp drop in August last year.
Resistance at $26: Currently near the 200-day moving average (MA), this level could cap further gains. A breakout above it could push the stock toward $32.
Next Hurdle at $37: Investors may start taking profits around this level, as it aligns with previous peaks from mid-2023.
Long-Term Target at $45: A sustained uptrend could see shares test this major resistance zone, where prior peaks and troughs converged between November 2023 and March 2024.
Key Support at $19: If the stock reverses, this area represents significant support, aligning with the lower boundary of the rectangle pattern, where buyers may step in.
With ongoing takeover speculation, U.S. AI policy support, and a potential foundry partnership, Intel remains a key stock to watch in the semiconductor space.
