(Tech News) – Exciting news for the tech industry as reports from the Wall Street Journal suggest that Intel Corp. is being approached by Qualcomm Inc. for a potential takeover. This deal could potentially set a new record in the chip industry.
According to sources familiar with the situation, discussions between the two companies have taken place in recent days. Both Intel and Qualcomm have chosen not to comment on the matter.
Following this news, Intel’s shares surged by up to 9.5% to $23.14 in Friday’s New York trading session, bouncing back from earlier losses. The company had seen a 58% decrease in shares this year up until Thursday.
Intel, once a dominant player in the chip market, has been facing challenges with declining sales and increasing losses. With a market valuation of under $100 billion, which is roughly half of Qualcomm’s, a potential takeover could have significant implications for the industry.
On the other hand, Qualcomm saw a decline of up to 5.5% in its shares, indicating investor concerns about the potential deal.
Intel, headquartered in Santa Clara, California, recently announced strategic changes aimed at revitalizing its business. This includes a major deal with Amazon.com Inc. to develop a custom AI semiconductor and a plan to restructure its manufacturing business as a separate entity.
Qualcomm, known for its smartphone processors, had previously been involved in a takeover attempt by Broadcom Inc. over six years ago. However, the deal fell through after being blocked by President Donald Trump due to national security concerns.
(Additional updates regarding the potential deal have been included in the fourth paragraph.)
Stay tuned for more updates on this developing story.
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