Why Intel (INTC) Stock Is Rallying Today

Intel (INTC) is climbing 8% today based on a report of a company potentially being interested in acquiring the chipmaker.

News website SemiAccurate today reported that “about two months ago” it “was read an email about a company trying to acquire (all of) Intel.” The website indicated that this unnamed potential acquirer has not been previously mentioned in the media as a possible suitor for INTC.

A technician soldering components for a semiconductor board.

A “highly placed source..last week” confirmed the information, SemiAccurate reported. As a result, the website said that it now has “near certainty” that the “plan” to buy Intel is authentic. SemiAccurate is also 100% sure that the original email was legitimate and that it stated that the company was looking to acquire Intel at the time.

Qualcomm Is No Longer Very Interested in Buying Intel

In late November, QCOM, which had reportedly spoken with Intel about a potential acquisition in September, became less interested in such a deal because of its difficulty, Bloomberg stated. But QCOM may still buy portions of Intel or decide to acquire all of it later, the news service added.

The Price Action of INTC Stock

In the last month, INTC heading into today had risen 3%, but it had dropped 12% in the last three months.

While we acknowledge the potential of INTC, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than INTC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.