Intel Break Up Rumours, Meta Caps 20-day Win Streak

Shares of Intel (INTC) just surged 16% on Tuesday, 18 February, marking its best day in nearly 5 years, while at the same time, Meta Platforms (META) just rounded off a huge 20-day win streak. 

The massive surge in interest around Intel came after a Wall Street Journal report suggested that Broadcom (AVGO) and Taiwan Semiconductor Manufacturing (TSM) may be considering bids that could lead to the division of the struggling chipmaker.

Following exhaustion after a near 3-week rally, Meta Platforms shares shed -2.76% on Tuesday, 18 February. 

Is there more fuel in the tank for these shares, or has the momentum faded?

Intel & Meta Stock Performance Charts

Both INTC and META share prices have experienced notable gains over the past several sessions. In the case of INTC, it has been very event-driven over the past week, while in the case of META a number of seemingly positive outcomes over a few weeks have boosted sentiment around the stock.

Could Intel Really Break Up?

Some investors appear to see a pathway to a breakup on Intel, likely explaining Tuesday’s 16.1% gain, the company’s best 1-day performance since March 2020.

According to the Wall Street Journal, Broadcom is exploring the possibility of acquiring Intel’s chip design and marketing division, while TSMC is evaluating a stake or full ownership of the company’s manufacturing facilities. Citing sources familiar with the matter, the report noted that discussions remain informal, and no official bids have been submitted.

The stock has been under pressure in recent years as it lagged its more dynamic semiconductors and chipmaker industry peers like Nvidia (NVDA) and ARM Holdings (ARM). This has been exacerbated since the release of OpenAI’s ChatGPT and the beginning of the new AI ‘arms race’ in which Intel had no clear contribution. The shares were down over 60% in 2024. (Source: CNBC)

New Enthusiasm for Meta

As a point of reference, the longest-ever winning streak for the S&P 500 was 14 days and that happened in 1971.

The Magnificent 7 stock extended its winning streak to 20 consecutive days on Friday, it was the President’s Day holiday on Monday and the stock dipped on Tuesday. Meta has experienced only five losing sessions this year 

Interestingly, the stock had been unbeaten since Donald Trump took office, perhaps in part because of CEO Mark Zuckerberg’s friendlier gestures towards the 47th President, including contributions to his inauguration and rolling back of Facebook's DEI policies. 

Added to that their fundamentals appear to also be in place. Meta's fourth-quarter earnings, released in late January, significantly exceeded consensus estimates. Meanwhile, its AI chatbot gained 100 million new monthly active users since December, bringing the total to 700 million. Additionally, Zuckerberg revealed plans to invest between $60 billion and $65 billion in AI.

Conclusion: What’s Next for INTC and META Stocks?

Intel’s stock may remain volatile as speculation around a potential breakup continues, but without formal bids, any further gains could hinge on concrete developments. Meanwhile, Meta’s stock pullback after an unprecedented 20-day rally suggests some exhaustion. Going forward, Intel's fate could depend on deal progress, while Meta’s ability to sustain momentum could be driven by its AI strategy and broader market conditions.

Only time will tell what lies ahead.

*Past performance does not indicate future results