Qualcomm has been trying to acquire chipmaker Intel in recent days, the Wall Street Journal reported Friday, citing sources familiar with the matter.
Shares of Intel closed up 3.3%, while Qualcomm fell 2.9%.
Intel has tried to get the company back on track by focusing on its chip manufacturing and artificial intelligence processors. But the company’s shares have fallen sharply in recent months as it has cut jobs, suspended its dividend and resigned from a high-profile board member.
According to the WSJ report, a deal is far from certain. Even if Intel were open to a bid from Qualcomm, a deal of that size would still be subject to antitrust review.
To complete the deal, Qualcomm may plan to sell Intel assets or parts to other buyers, the report said.
Intel declined to comment, while Qualcomm did not immediately respond to a Reuters request for comment.
Earlier this month, Reuters reported that Qualcomm was exploring the possibility of acquiring part of Intel’s design division to bolster the company’s product portfolio.
Qualcomm has been exploring whether to acquire several parts of Intel, which has struggled to generate cash and is looking to spin off parts of its business and sell other assets, Reuters reported.
Analysts and investors had expected Intel to likely be removed from the Dow Jones Industrial Average index.
Intel shares have fallen 57% this year, making it the index’s worst performer and the lowest share price on the price-weighted Dow.
Intel, once a dominant player in the chip industry, has struggled to hold its own in the AI era, lagging behind major chipmakers like Nvidia, AMD and Taiwan Semiconductor Manufacturing.
Intel’s foundry, a contract manufacturing company, has taken on Amazon’s cloud services division as a customer to produce custom artificial intelligence chips, providing some relief to struggling investors.