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Hedge funds have been selling shares of Intel (INTC) and buying up rivals, such as Nvidia (NVDA) and Advanced Micro Devices (AMD). According to data from 13F filings, more shares of Intel were sold by funds than any other company besides Nokia Oyj. Sentiment has recently soured on Intel as it implements its turnaround plans. Also, Tuesday’s termination of Intel’s $5.4 billion deal to acquire Tower Semiconductor Ltd (TSEM) could slow its plans toward becoming a top chipmaking foundry.
Late Tuesday, Intel said it was walking away from a February 2022 agreement to acquire Tower Semiconductor Ltd for $5.4 billion after it failed to win regulatory approval from China on time. The attempted purchase of Tower Superconductor was a major push by Intel CEO Gelsinger’s plan to get into the foundry market, the faster-growing part of the semiconductor industry dominated by Taiwan Semiconductor Manufacturing Co. Rising tensions between China and the U.S. have made securing approval for transactions that require agreement from regulators in China and the U.S. increasingly difficult, particularly those involving semiconductors.
