NEW YORK (TheStreet) -- Broadcom (BRCM) soared by double digits Wednesday on word that Avago Technologies (AVGO) is close to acquiring the chip maker. That chatter also sent other chip stocks higher, including Intel (INTC) and Micron Technologies (MU) which also rose, in part due to an earlier report of rising demand for chips.
Broadcom spiked 21.8% to close at $57.15. Avago, reportedly the prospective buyer, soared 7.8% to end the day at $141.49.
Avago is reportedly in advanced buyout talks to acquire Broadcom, which manufacturers chips for both the smartphone and broadband industries, according to a Reuters report. Broadcom's market cap at the close Wednesday stood at nearly $34.2 billion.
The report also noted a deal between the companies could come as early as this week. Avago has ramped up its inquisitive nature, approaching Xilinx, Renesas Electronics and Maxim Integrated Products about a potential buyout, according to Reuters.
Intel jumped 1.8% to end the session at $33.71.
Intel reportedly resumed buyout talks to acquire Altera (ALTR) earlier this month, with the parties eyeing a potential price that could reach $13 billion, according to a CNBC report.
Interest is running high when it comes to mergers in the chip industry, making Intel and Avago far from alone in their pursuit of potential buyout targets. Last year, according to a Reuters report, worldwide semiconductor mergers and acquisitions reached $31 billion -- its highest level since 2011.
Micron Technologies climbed 3% to close at $28.13.
Micron was tagged earlier this year as a potential buyer of rival SanDisk (SNDK), which closed up 4% to end the day at $69.01.
An April report cited a note from Bernstein analyst Mark Newman. According to this report, Newman pointed to SanDisk's current valuation as making it a prime takeover target for rival NAND chip maker Micron, as well as other players in the market.
Micron, however, may have an greater incentive to strike such a deal. A Jefferies & Co. analyst, according to a Barron's report, said Micron, as well as Intel, are expected to benefit from the diminishing inventory of chips in the struggling PC market.
As the PC industry uses up its chip inventories, Intel and Micron stand to benefit as these hardware players purchase new semiconductors later this year, Jefferies said in the report.