Intel Corp. (INTC) shares have jumped nearly 18% over five days after reports that Broadcom (AVGO) and Taiwan Semiconductor Manufacturing Co. (TSM) are exploring deals that would split the American chipmaker.
The potential breakup of Intel, reported by the Wall Street Journal, may reshape the semiconductor landscape. A major deal would transform not just the companies involved but also the ETFs that track them, as investors evaluate how a restructuring might affect the industry’s future growth, manufacturing capabilities and global market positioning.
What does etf.com data tell us about how investors are reacting to a potential Intel split?
First, the $304.3 million First Trust Nasdaq Semiconductor ETF (FTXL), with 9.3% allocated to Intel, has lost $30.8 million over the past month while falling over 1.5% during this same period.
At the same time, the REX FANG & Innovation Equity Premium Income ETF (FEPI), holding 6.5% Intel among its $480.8 million in assets, has attracted $28.7 million in new money over the same period, data show.
So, the contrast in fund performance and flows highlights investors’ uncertainty about how Intel’s potential split would impact semiconductor ETF performance over time.
Broadcom is examining Intel’s chip-design business while TSMC explores controlling Intel’s factories, with all discussions remaining preliminary, WSJ said.
On the other side of the potential deal, ETFs holding Broadcom, Taiwan Semi or both show contrasting investor sentiment, according to etf.com data.
The iShares U.S. Tech Independence Focused ETF (IETC), with 11.5% in Broadcom, has gained 3.8% over the past month and 11.2% over three months while collecting $37.4 million in inflows, according to etf.com.
The Columbia Seligman Semiconductor and Technology ETF (SEMI), holding 15.3% Broadcom exposure, has risen 10.5% over three months.
The VanEck Semiconductor ETF (SMH), with $23.5 billion in assets and 13.2% TSM allocation, has experienced $362.3 million in outflows while maintaining a 6.5% three-month performance.
Source: etf.com
The SP Funds S&P World ex-US ETF (SPWO), holding 16.5% TSM within its $37.2 million portfolio, has gained 4.7% monthly and 6.2% over three months, etf.com data show.
According to etf.com data, three-month performance remains positive across semiconductor funds despite the uncertainty, with gains between 3.1% and 11.2%, suggesting investors continue seeing value in the sector.
