Intel rivals Broadcom and TSMC eye possible deals to split the US chipmaker in two, WSJ reports

Both Broadcom and TSMC's interest in Intel highlights a potential restructuring in the semiconductor space that could give rise to more competitive dynamics. If they successfully acquire parts of Intel, it could strengthen their own positions while making Intel less competitive. The focus on breaking Intel into two could signal uncertainty and volatility around Intel's stock in the short term, particularly given its recent struggles. Overall, the news may create a negative sentiment surrounding INTC in the near term as investors assess the potential disruptions and strategic changes ahead.

Broadcom (AVGO) and TSMC (TSM) could see positive impacts from these developments, particularly if they successfully acquire new capabilities from Intel. For Broadcom, acquiring Intel's design assets may enhance its product offerings and market share in the semiconductor industry. TSMC's focus on manufacturing could provide further expansion and utilization of their facilities. Investors might look at their stocks favorably as the market reacts to the potential for growth and competitive advantage after these strategic maneuvers.

TSMC stands to benefit from any increase in demand for its contract manufacturing capabilities, especially if Intel's operations are disrupted or downsized. Being the world's largest contract chipmaker, securing more of Intel's assets could significantly bolster TSMC's revenue streams and market position, making it a strong candidate for investors seeking growth in tech manufacturing.