The Santa Clara, Calif., chipmaker's shares at last check were little changed at $55.75. They've traded on Friday up as much as 2% at $56.93.
TheStreet's Jim Cramer said that a potential deal between the two companies is unlikely to come to fruition because of the antitrust regulatory climate under President Joe Biden.
"This new antitrust department of President Biden will no doubt do anything to stop this deal," Cramer wrote in a column on RealMoney.
A tie-up of Intel with Global Foundries, Malta, N.Y., would push the company ahead of rival Advanced Micro Devices (AMD) - Get Report, which is a holding in Jim Cramer's Action Alerts PLUS charitable trust.
The combination would give Intel "unlimited abilities" to make any microchips, Cramer said.
"I am sure if [Chief Executive] Pat Gelsinger spoke to a competent antitrust lawyer - as I have on many occasions now - he or she would have said there is no way this Justice Department, this Federal Trade Commission, would ever let this happen, ever. So don't spin your wheels," Cramer said.
Analysts at KeyBanc view the deal as a positive, as "it would significantly accelerate plans for IDM 2.0, vs. waiting for the construction of its Arizon fabs, which are expected ramp meaningful production in 2023." IDM 2.0 is a broad strategy that Gelsinger outlined in March.
KeyBanc has an overweight rating and $70 price target on the company.
Meanwhile, analysts at Rosenblatt, who have a sell rating and $40 price target on the stock, say the deal would make sense "as a way for Intel to achieve legacy scale, and a way for the company to entice subsidies from western countries."