The all-American merger could potentially alleviate antitrust concerns and reshape the chip sector significantly. Intel, once renowned as the world's largest chipmaker, may soon face a friendly acquisition bid from Qualcomm. News of this potential acquisition has already caused a stir in the market, with Intel's stock surging by 8% while Qualcomm's fell by 5.5% amid discussions.

According to reports from sources familiar with the matter, talks have recently been initiated between Qualcomm and Intel regarding a possible acquisition of the company in its entirety. While the discussions are still in their early stages, the Wall Street Journal reported that Qualcomm had reached out to its rival to discuss the potential acquisition. However, it remains uncertain whether these preliminary talks will result in a finalized agreement. Given the immense scale of the proposed deal, even if both parties were to agree, it is likely to undergo close antitrust scrutiny.

Intel has been facing significant challenges in recent years, with its shares plummeting by about 37% over the past 12 months. The company is on track to experience its third consecutive year of declining sales, with projected 2024 revenues estimated at $52 billion - down by 70% from 2021 levels. Despite these struggles, Intel's CEO Pat Gelsinger reportedly remains committed to the company's turnaround plan and believes in its potential to sustain its independence. Additionally, while Intel is currently valued at about $93 billion, Qualcomm has seen its stock price surge by over 50% during the same period, reaching a market capitalization of around $188 billion.

Furthermore, recent reports have suggested that Qualcomm has not ruled out the possibility of buying or selling specific parts of Intel in a combined deal, potentially focusing on Intel's design business, including its PC design unit. Qualcomm executives have been reportedly reviewing Intel's entire portfolio of businesses, with CEO Cristiano Amon actively engaged in negotiations. The financing of such a large-scale acquisition by Qualcomm remains uncertain, with the company holding approximately $13 billion in cash and Intel poised at a value of $122 billion, along with significant long-term debt.