Well, I guess the rumors are true. Qualcomm might actually buy Intel. Yeah, you read that right. The company that makes your phone chips is thinking about scooping up the once-upon-a-time king of semiconductors, Intel. You know, the company that used to run the chip game, but now can barely find its a$$ with both hands? Yeah, that Intel. 

(Source: CNBC) 

In short, the news drop today gave Intels stock a much-needed shot of adrenaline, jumping 8% like it just remembered how to function. So it had a pretty massive impact for Intel investors going into the weekend. 

However, before you “BTFD” investors start throbbing with even more excitement (although the rumors are true), talks are still in the “Let's grab coffee” stage. Meaning, there are no guarantees this turns into anything serious—and who knows, maybe Qualcomm just wanted to see if Intel still has a pulse.

(Source: Giphy) 

But, but, but… if this does happen? Well, we’re talking about one of the biggest tech acquisitions ever. Like, "holy sh*t, that actually happened?" levels of big. Intel, currently limping along with a market value of $96 billion, and Qualcomm, flexing a cool $194 billion, could join forces to form some kind of mutant chip-making monstrosity. And honestly? It might be the only way Intel can stay relevant in the modern tech world.

Which could be a blessing for Intel as they’ve been circling down the drain for a while now. ICYMI, Intels stock is down over 50% this year. Fifty. Percent. That’s not a dip; that’s a gosh darn freefall. Now sure, Intels $3.5 billion Pentagon contract has helped some, but there are no guarantees of seeing that money (they haven’t even sniffed the full $8.5 billion the government's Chip Acts issued to the company). 

(Source: Electronics Weekly) 

And investors know this. Especially as people continue losing faith from Intel's AI struggles, and Intels failed ambitious plan to become a major chip manufacturer for other companies. Newsflash: no one cares about your plans when your execution sucks.

So even though Intel was once the big dog, where everyone else was just trying to catch up, those days are long gone. These days, they’re getting their lunch money stolen by the likes of AMD and TSMC, companies that actually know how to deliver on promises. 

(Source: Giphy) 

AMD’s been out here embarrassing Intel in the CPU game, while TSMC has been cranking out chips for literally everyone—Apple, Nvidia, you name it. Meanwhile, Intel’s still trying to figure out how not to trip over its own feet. (I’m fully convinced their new Amazon gig was just a lucky dice roll). 

(Source: Giphy) 

Oh and since I’m on a roll here, don’t even get me started on Intel’s foundry business. CEO Patrick Gelsinger rolls in back in 2021 like he's the second coming of Steve Jobs and promises to turn Intel into a foundry powerhouse. Spoiler alert: it didn’t go as planned. Turns out, it’s kind of hard to become “the next TSMC” when your current manufacturing game looks like it’s being run by interns.

So, then, why in the Sam hell does Qualcomm want Intel, you ask? Good question. Qualcomm’s been perfectly happy outsourcing its chip production to TSMC, letting someone else do the dirty work while it rakes in the cash. So why would they want to buy a company that’s bleeding money and credibility?

(Source: Giphy) 

Well, for one, Intel may be a mess, but it’s a mess with a ton of valuable IP and expertise. Qualcomm’s not dumb—they’re not looking to take on Intel’s manufacturing headaches (because who in their right mind would?). If this deal goes through, Qualcomm would most likely (and by that I mean definitely) sell off Intel's factories. 

Plus, Intel still has a massive portfolio of chip designs and patents, and that’s something you can’t just throw away. Qualcomm’s likely eyeing that treasure trove of tech, knowing good and well that they could do something with it… after, you know, setting the rest of the place on fire. 

(Source: Giphy) 

However, with that said, even while Intel has popped on the good news with investors likely getting party reservations in order tonight: any deal between Qualcomm and Intel would be a regulatory nightmare. The FTC would be all over this like flies on garbage, and for good reason. 

The semiconductor industry is already a tight-knit oligopoly, and the last thing regulators want is two giants merging into a super-giant. Remember when Nvidia tried to buy Arm? Yeah, that went about as well as Bud Light partnering with Dylan Mulvaney, making every beer drinking southern man cringe in horror. 

(Source: Giphy) 

So if Qualcomm and Intel actually go through with this, expect months, if not years, of legal battles. Every regulator from here to Europe will want a piece of this action, and by the time it’s all said and done, Qualcomm might just say, “You know what? Never mind.” And I, for one, wouldn’t blame ‘em. 

In the end though, while this whole thing could fizzle faster than Apple's hype after its less than appealing “GlowTime” event, here’s the main takeaway: even the rumor of Qualcomm’s interest was enough to give Intel’s stock a rare boost. That’s how desperate things have gotten for Intel. A report about a “maybe” takeover is enough to send investors into a frenzy, even though the company is still down 55% on the year.

(Source: Giphy) 

So whether or not this deal happens or not, Intel’s in a weird spot. Gelsinger’s trying to overhaul a company that feels like it’s stuck in the early 2000s, and Qualcomm’s interest might be the best thing Intel’s got going for it right now. If they don’t get bought out, Intel’s got some serious soul-searching to do. And if they do get bought? Well, Qualcomm’s about to have one hell of a yard sale.

In the meantime, keep a close eye on both of these companies over the weekend and next week. As always, stay safe, stay frosty, and have one hell of a weekend friends! Until next time…

Stocks.News holds positions in Apple and Intel as mentioned in the article.