One of the most interesting stocks of the year may be set to give investors even more reason to be intrigued. Indeed, Broadcom (AVGO) is reportedly eyeing an acquisition of Intel’s (INTC) business; the deal, if it goes through, could have important implications, according to Bernstein analysts.

The rumors were huge for Intel, as shares in the company surged more than 12% Tuesday. There is no denying that it has helped INTC bounce back from what has been a rather disappointing few months. Currently, the company has a hold rating on 82% of 45 surveyed analysts, according to CNN.

Also Read: Broadcom (AVGO) Stock Bucks Trend, Jumps 6%: Here’s Why

Bernstein Eyes Key Intel Deal as Bernstein Says It Could be Beneficial for AVGO

Despite recent headwinds, the AI sector is still looking to generate significant investment on Wall Street. Moreover, that has led many to assure that Nvidia (NVDA) is only widening the gap between its competitors. However, there may be hope for some of its greatest challenges as recent developments could work to level the playing field.

Indeed, Broadcom is reportedly interested in acquiring parts of Intel in a move that Bernstein says would be good for the stock. AVGO currently boasts a good financial health score according to InvestingPro data. Moreover, it would be in a prime position to make the deal.

Also Read: Apple (APPL) & Broadcom Team Up: Why it’s Bad News For Nvidia

According to reports, they are seeking to enter a bid for Intel’s chip design and marketing arm. Those parts of the company had generated $49 billion in sales last year, with operating margins in the mid-20s. Moreover, Bernstein has “expressed enthusiasm for the potential deal,” a report notes.

The research firm says that as long as Broadcom avoids its manufacturing arm, the acquisition could be beneficial. Specifically, introducing Intel’s product line would be massive for the AVGO stock. The stock currently has a median price target of $250, according to CNN. That would be up 9% from its current price point. Moreover, its high-end price projection is up 31%, reaching $300. An Intel deal would likely propel that even higher.