Intel Joins Race To Buy AI Startup Tenstorrent: Report

Intel Corp. (NASDAQ:INTC) is reportedly exploring a strategic interest in AI chip startup Tenstorrent as major semiconductor companies race to strengthen their positions in the rapidly expanding AI inference market.

Intel, Qualcomm Circle Tenstorrent

Tenstorrent, which develops AI chips focused on improving efficiency for specific AI workloads, has reportedly held discussions with Intel and Qualcomm Inc. (NASDAQ:QCOM) amid accelerating takeover interest in AI chip startups, Bloomberg reported on Tuesday, citing people familiar with the matter.

Reportedly, Tenstorrent has also been working with investment banks to evaluate strategic options. Bloomberg reported Tenstorrent could be valued at more than $5 billion in a deal.

The report also noted that Tenstorrent continues to pursue a new funding round while chipmakers race to secure AI technology and talent to compete with NVIDIA Corp. (NASDAQ:NVDA) and Advanced Micro Devices, Inc. (NASDAQ:AMD).

INTC Extends Momentum

Intel stock is trading higher on Friday as chip stocks track a firm risk-on tape and traders continue to lean into the stock's longer-term uptrend. The Nasdaq is up 0.57% while the S&P 500 has gained 0.56%.

With the major indexes green and momentum names still in favor, Intel's move looks consistent with dip-buying behavior in a strong trend rather than a single headline-driven spike. The stock's outsized 12-month run keeps it on traders' radar when the broader market is pushing higher.

Intel is also sitting close to its recent highs, which can attract breakout-focused flows even when the day's catalyst is mostly "tape-driven." That proximity matters because nearby resistance levels often become the next decision points for short-term positioning.

Intel Analyst Outlook

The stock carries a Hold rating with an average price forecast of $77.65. Recent analyst moves include:

• Citigroup: Buy (Raises forecast to $130.00) (May 18)
• Benchmark: Buy (Raises forecast to $140.00) (May 18)
• Mizuho: Neutral (Raises forecast to $124.00) (May 12)

Top ETF Exposure

• iShares Semiconductor ETF (NASDAQ:SOXX): 6.30% Weight
• iShares MSCI USA Value Factor ETF (BATS:VLUE): 5.07% Weight
• First Trust Nasdaq Semiconductor ETF (NASDAQ:FTXL): 8.56% Weight

Significance: Because INTC carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

Intel Price Action

INTC Stock Price Activity: Intel shares were up 0.92% at $119.59 at the time of publication on Friday, according to Benzinga Pro data.

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