Qualcomm could acquire rival Intel – but securing the deal won't be easy
A tie-up between Qualcomm and its semiconductor rival Intel would be a coup. But multiple regulatory and commercial hurdles lie ahead.


Shares in Intel jumped by 8% last week following reports that chipmaker Qualcomm had approached its struggling rival about a potential takeover, says the Financial Times. A deal is “far from certain” and no formal offer has been made, but a tie-up would eclipse Microsoft’s $69 billion acquisition of Activision as the biggest technology deal on record. Intel’s share price has halved this year, putting the company on the defensive.
Such a deal would be a “massive coup” for Qualcomm, which re-entered the desktop processor market this year as a part of Microsoft’s artificial intelligence (AI) PC strategy after “years of dominance in mobile processors”, say Richard Lawler and Sean Hollister in The Verge.
By contrast, Intel is “arguably in its weakest position in years”, with the company recently announcing big cuts, strategic shifts and a 15% downsizing of its workforce this August after reporting a $1.6 billion loss in the second quarter of 2024. The group later announced that it would spin off its chip-making business, “a part of the company that it had long touted as a strength over rival AMD”.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
What hurdles is Qualcomm facing?
The “yawning gap” between their market values, with Qualcomm worth double Intel’s value, gives Qualcomm an “opening” to pull off a deal, says Bloomberg’s Chris Hughes. It would help Qualcomm diversify its business.
However, many obstacles to a successful transaction remain, not least the fact that neither Intel’s management nor its shareholders will be willing to “play ball” when the share price is “on its knees” unless there is “a very high premium or certain value creation on offer through trading into the enlarged company”. What’s more, asset sales will be required to assuage antitrust regulators – they would probably take place at “fire-sale” prices.
While Qualcomm would probably be required to sell off parts of Intel’s business to deal with antitrust concerns, it would probably also be forced to continue to “shovel ever-more money” into Intel’s manufacturing operations, says Robert Cyran for Breakingviews. These have become a “money pit”, generating $4.2 billion of revenue last quarter but losing $2.8 billion. The US government has made these operations “a cornerstone of its chip strategy, awarding Intel billions in subsidies”. Overall, while Intel’s lower valuation clearly has Qualcomm (and others) “salivating”, this “isn’t the screaming deal it might seem.
Any buyer would need the ability to “solve multiple existential threats” while also “getting such a deal through regulators that would include China”, says Dan Gallagher in The Wall Street Journal. But “questionable deals still have a way of happening”.
No wonder then, that Intel, even in its “current predicament”, is “drawing all types of interest”. For instance, distressed investment specialist Apollo Global Management has offered to buy an equity stake of up to $5 billion, which could be a more plausible scenario than a deal with Qualcomm given Intel’s cash needs and “less likelihood of regulatory hurdles”.
This article was first published in MoneyWeek's magazine. Enjoy exclusive early access to news, opinion and analysis from our team of financial experts with a MoneyWeek subscription.
Related stories
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.

Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.
He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.
Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.
As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.
Follow Matthew on Twitter: @DrMatthewPartri
-
What makes you wealthy in the UK? Could it make you a target in Rachel Reeves’ Budget?
Wealthy Brits could be at risk from a Budget tax raid – but how much money do you need to be considered wealthy in the UK?
-
More retirees are buying inflation-protected annuities. What are they and how do they work?
Sales of annuities where the income on offer increases every year have surged – and more people are also taking up enhanced rates that are higher due to illness
-
Pierre-Édouard Stérin wants to make France great again
Conservative billionaire Pierre-Édouard Stérin is seeking to lead a political and spiritual renaissance across the Channel. The planning looks meticulous
-
Global investors have overlooked the top innovators in emerging markets
Opinion Carlos Hardenberg, portfolio manager, Mobius Investment Trust, highlights three emerging market stocks where he’d put his money
-
Pinewood Technologies: a drive for growth
Pinewood Technologies’ platform is one of the best in the business. Investors should buy in
-
'EV maker Faraday Future will crash'
Faraday Future Intelligent Electric is failing dismally to live up to its name, says Matthew Partridge
-
Investors should cheer the coming nuclear summer
The US and UK have agreed a groundbreaking deal on nuclear power, and the sector is seeing a surge in interest from around the world. Here's how you can profit
-
8 of the best houses for sale with follies
The best houses for sale with follies in the grounds – from a five-storey Victorian Gothic tower in Tonbridge, Kent, to a former mill in Oxfordshire with gardens that include a folly on an island in a lake
-
A tale of two Reits – why performance matters for valuation
AEW UK and Regional are two Reits that are valued very differently, despite a shared focus on properties outside London
-
Healthcare stocks look cheap, but tread carefully
Shares in healthcare companies could get a shot in the arm if uncertainty over policy in the US wanes, but are they worth the risk?