Intel missed key markets like smartphones and AI, leading to its decline. A potential Qualcomm-Intel merger would be challenging and may not boost their AI presence. Investing in Intel is risky, with the company needing major changes to avoid further trouble.

Qualcomm has approached the once-dominant chipmaker Intel for a potential buyout, turning the spotlight on the portfolio of products these chip companies have to offer.

Rumors about Qualcomm's attempt to take over Intel have been intensifying, despite various sources suggesting that "everything is still in the early stages." The market remains highly skeptical about Qualcomm fully acquiring the much larger Intel,

One analyst notes that Intel’s situation doesn’t seem dire enough for the company to settle for a “fire sale.” Plus, Qualcomm could see Intel’s foundry assets as a headache.

Key Takeaways Qualcomm reportedly came to Intel recently with interest in a potential takeover.Such a deal could offer a lifeline for Intel's foundry business and position Qualcomm as a dominant player in the PC processor market.

The embattled chip giant has become a takeover target in recent days, but the tough act of separating the pros from the cons makes a takeover unlikely.