Does Qualcomm want to buy Intel?

According to the CNBCIt is unclear whether Intel is involved in discussions with Qualcomm or what the terms of the deal would be. If it goes through, the deal would be one of the largest M&A deals in technology history. Intel currently has a market capitalization of over $90 billion.

New York Times revealQualcomm has not yet made an official offer to Intel.

Once the world's largest chip manufacturer, Intel has been in a downward spiral for years, particularly in 2024. In August, the American company experienced its worst day in 50 years after reporting disappointing earnings. On August 2nd, its stock fell 26% to $21,48. This year, Intel's stock has lost 53% of its value as investors become skeptical about its costly plans to revive its chip business.

Qualcomm and Intel compete in several markets, including PC and laptop chips. However, unlike Intel, Qualcomm does not manufacture its own chips but relies on foundries such as TSMC and Samsung.

Earlier this week, following a board meeting on strategy, Intel CEO Patrick Gelsinger sent an internal memo to employees, reiterating the company's commitment to investing heavily in chipmaking, a project that could cost $100 billion over the next five years. The company is also considering external investments.

Intel missed the AI ​​revolution. Most advanced AI programs like ChatGPT run on Nvidia's graphics processors, rather than Intel's central processing units. Nvidia holds over 80% of this market, according to experts.

Qualcomm's revenue is lower than Intel's. In fiscal year 2023, Qualcomm reported revenue of $35,8 billion, while Intel's was $54,2 billion.

The deal between Qualcomm and Intel would be complicated due to antitrust and national security concerns. Both companies operate in China and have both been unsuccessful in acquiring other chip companies.

Major M&A deals in the semiconductor industry have been largely unsuccessful. In 2017, Broadcom offered to buy Qualcomm for over $100 billion, but the Trump administration blocked the deal the following year due to national security concerns. At the time, Broadcom was based in Singapore. In 2021, the US Federal Trade Commission sued to block Nvidia's attempt to acquire chip design firm Arm. The deal was canceled in 2022 under pressure from authorities in Europe and Asia.