Qualcomm eyes pockets of Intel design business – report

Qualcomm (NASDAQ:QCOM) has looked into the potential buying of Intel’s (NASDAQ:INTC) design business as the San Diego-based mobile chipmaker attempts to improve its product line, according to a Reuters report that cites two sources with knowledge.

Such interest sparks amid Intel’s (INTC) ongoing financial struggles and efforts to streamline operations, which may involve divesting certain business units.

Qualcomm (QCOM) has been considering various parts of Intel’s (INTC) design operations, particularly its client PC design division, which is of significant interest, one of the sources said. However, acquiring Intel’s (INTC) server segment is deemed less logical for Qualcomm’s (QCOM) strategic goals.

Intel’s (INTC) revenue from its PC client business fell 8% last year, reflecting broader weaknesses in the PC market. Intel (INTC) still remains committed to the segment and views it as crucial for future growth, with an anticipated rise in demand for AI PC products.

As of now, Qualcomm (QCOM) has not formally approached Intel (INTC) regarding any acquisition, and discussions are still in the exploratory phase, the report highlighted.

Year-to-date Intel (INTC) stock lost 62%, and Qualcomm (QCOM) saw a 13.2% rise during the same time frame.