<div id="readability-page-1">Shares of Intel (INTC 12.78%) are flying higher on Thursday. The company's stock gained 8.9% as of 11:00 a.m. ET but was up as much as 11.2% earlier in the day. Meanwhile, the S&amp;P 500 was flat and the Nasdaq Composite lost 0.3%. The chipmaker has fallen behind rivals like AMD and Nvidia in the all-important artificial intelligence (AI) market and is considering deals with several other chipmakers that would lead to a major shakeup. <h2>What happened</h2> Over the weekend, The Wall Street Journal reported that Broadcom is looking into making a bid for Intel's product business, the heart of Intel, which designs and markets its own chips. The deal could involve the company being cut in two, with Taiwan Semiconductor stepping in to take over its other major business, manufacturing and fabrication. <h2>Why it matters</h2> For years, Intel was a leader in the chip industry, designing and manufacturing its own chips, but the company has fallen behind in the age of AI. In a bid to remain competitive, it created its foundry business, manufacturing chips for outside designers. The move hasn't worked out; the unit struggles to grow its customer base and bleeds cash. Intel's CEO stepped down a few months ago as a result of that failure. If Intel successfully spins off its foundry arm, it could drive value for both of the resulting businesses. TSMC's expertise could help the fabrication arm find its footing, and a strategic merger with Broadcom on the design side could help revitalize the company. The deals could be lucrative for Intel shareholders. </div>

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Shares of Intel (INTC) surged by 8.9% on Thursday, following reports that Broadcom is considering a bid for Intel's product business. This potential deal could split Intel into two, with Taiwan Semiconductor taking over its manufacturing operations. Intel has struggled in the AI market, leading to a recent CEO departure. A successful spin-off could enhance value for shareholders, leveraging TSMC's expertise and Broadcom's design capabilities.

- Intel's shares rose by 8.9% on Thursday, despite the S&P 500 remaining flat and the Nasdaq Composite declining by 0.3%.  
- The Wall Street Journal reported that Broadcom is considering a bid for Intel's product business, which may lead to a split with Taiwan Semiconductor taking over manufacturing.  
- If successful, these strategic moves could enhance competitiveness in the AI market and potentially increase value for Intel shareholders.

Why Intel Stock Is Skyrocketing Today