Intel Corporation’s (NASDAQ:INTC) bid to acquire Altera Corporation (NASDAQ:ALTR) seems to have stalled. Talks between the two companies broke off according to sources. The breakdown happened Altera rejected the low $50 per share deal given by Intel.

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It was last month that the report of Intel’s intention to buy Altera was made known. Since then Altera’s shares surged more than 20% on the back of the merger talks. Altera’s market cap as of Wednesday was $12.6 billion.

However despite the news of the talks not going through, the shares of Altera traded higher for most of the trading session. The shares went downwards initially, however it rebounded later in the day. This may be due to investors’ belief that a deal will happen in the future.

It was earlier reported by WSJ that the two companies were in advanced talk for the deal. The deal might still go through, and both the parties may return to the table.

The increase in share prices after the news might lessen pressure on Altera’s management to return to the table however the company will still have to convince their shareholders as to why the move was the right one.

In related news, there is speculation that the talk between Intel and Altera is dead, and Intel is on the lookout for another acquisition. According to Mark Hung, an industry analyst, Broadcom might be the acquisition target for Intel. The deal would be costlier however it would make more sense according to Hung.

Hung further added that the Broadcom is the company to buy if Intel Corporation’s (NASDAQ:INTC) wants to get into the network infrastructure. Hung was also of the view that Altera should have accepted the deal.

Worldwide the merger of semiconductor companies was worth $31 billion in 2014. According to analysts the M&A boom will continue despite the end of Altera- Intel deal.