Broadcom CEO Hock Tan Rules Out Interest in Intel Amid AI Expansion Focus
Broadcom Inc. CEO Hock Tan has categorically dismissed the notion of acquiring struggling chipmaker Intel Corp., stating that his company is fully occupied with capitalizing on the rapid growth of artificial intelligence. Speaking to the Financial Times, Tan emphasized that a takeover of Intel is not on his agenda, as his “hands are very full” managing Broadcom’s efforts to strengthen its position in the AI sector.

Broadcom Inc. CEO Hock Tan has categorically dismissed the notion of acquiring struggling chipmaker Intel Corp., stating that his company is fully occupied with capitalizing on the rapid growth of artificial intelligence. Speaking to the Financial Times, Tan emphasized that a takeover of Intel is not on his agenda, as his “hands are very full” managing Broadcom’s efforts to strengthen its position in the AI sector.
Tan made it clear that Broadcom’s primary focus is expanding its share of the AI chip market, an area currently dominated by Nvidia Corp. “That is driving a lot of my resources, a lot of my focus,” he said, noting that there has been no approach inviting him to bid for Intel either.
Reflecting on Broadcom’s corporate strategy, Tan stressed that he has moved away from hostile takeovers following the company’s failed attempt to acquire Qualcomm Inc. in 2018. That deal was blocked by then-President Donald Trump over national security concerns. At the time, Broadcom was based in Singapore, but it has since relocated to the United States. Tan acknowledged, “Ever since Qualcomm, I have learned one thing. No hostile offers,” explaining that he only considers acquisitions when there is a clear invitation to make a bid.
The fortunes of Broadcom and Intel have diverged sharply since late 2022, driven by the boom in generative AI technologies. Broadcom has seen its market capitalization more than double this year, surpassing $1.03 trillion as of last Friday’s close. In contrast, Intel’s market value has plummeted by more than 50%, now standing at $82 billion.
In its latest earnings report, Broadcom highlighted a staggering 220% year-over-year increase in revenue from AI chips. The company is known for designing custom AI chips for clients and selling essential AI infrastructure components used in data centers.
Meanwhile, Intel has struggled to compete in the rapidly evolving AI landscape. While it does produce Gaudi AI accelerator chips, they have failed to gain significant traction compared to Nvidia’s industry-leading GPUs. This underperformance has had severe repercussions for the company, culminating in the resignation of CEO Pat Gelsinger earlier this month. Reports suggest that the decision was influenced by pressure from Intel’s board of directors.
Gelsinger, who rejoined Intel in 2021 with ambitious plans to overhaul its manufacturing and design operations, faced considerable challenges in reversing the company’s decline. In August, he announced the largest workforce reduction in the company’s history, cutting approximately 15,000 jobs, and suspended dividend payments to shareholders. However, these measures failed to stabilize the company’s finances, and in October, Intel reported its largest quarterly loss ever.
Speculation about a potential sale of Intel or parts of its business has been growing amid these struggles. While companies such as Qualcomm were initially mentioned as potential buyers, sources indicate that their interest has waned. For now, Intel’s future remains uncertain as it continues to grapple with its position in a highly competitive market dominated by more agile rivals.