Feb 18 - Intel (INTC, Financial) jumped more than 10% on Tuesday morning after new reports revealed that the chipmaker is under fresh acquisition talks. Sources indicate that Broadcom (AVGO, Financial) and Taiwan Semiconductor Manufacturing Company (TSM, Financial) are in the early stages of evaluating bids that could split Intel's core businesses. Broadcom appears interested in Intel's chip design division, while TSM eyes the manufacturing segment, although retooling Intel's factories to meet TSM's production methods could prove costly.

• Warning! GuruFocus has detected 6 Warning Signs with INTC.

This development comes after a turbulent year 2024 in which Intel shares plunged nearly 60% and CEO Pat Gelsinger departed following a sluggish turnaround. Buying rumors were enough to lift Intel's stock higher this past week, and the momentum appears to continue after trading resumes following the President's Day holiday.

Such potential deals are seen by analysts as a critical chance for Intel to reshape and win back the trust of investors. However, they also warn that the process of integration may be filled with big obstacles. The semiconductor giant is on the brink of a critical juncture of structural change that can completely change its business model. Now, investors and market scrutinizers are looking closely as the negotiations move forward, knowing full well that whatever deal is made will reflect complex adjustments and regulatory review in a way that may touch almost all elements of the tech world.