Intel Shares Rise, Qualcomm Slides Following Report of Takeover Approach

By Connor Hart

Shares of Intel rose after Qualcomm made a takeover approach in recent days, The Wall Street Journal reported, citing people familiar with the matter.

The stock was up 5.9%, to $22.38, in afternoon trading. Shares are down 58% since the beginning of the year. Qualcomm shares are down 3.7%, to $167.84, but have risen 16% since the start of the year.

The takeover approach comes at a downbeat time for Santa Clara, Calif.'s Intel.

The company, once a dominant chip maker, has struggled to gain a foothold in the market for artificial-intelligence chips that have driven the sales and valuations of Nvidia and some other rival chip makers.

Intel reported a loss of $1.6 billion for the second quarter, compared with a $1.5 billion profit a year earlier. For its third quarter, the company forecast sales of roughly $13 billion in the third quarter, missing analyst forecasts.

Qualcomm posted higher profit in its most-recent quarter, as sales in its QCT semiconductor segment increased. The company has also grown its market share in the car industry, which has become increasingly digital thanks to electrification trends and advances in autonomous driving.

Shares of the San Diego company were down by as much as 5.5%, to $164.30, after the report before regaining ground.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

September 20, 2024 16:04 ET (20:04 GMT)

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