Qualcomm might buy Intel

On Friday afternoon, The Wall Street Journal reported Intel had been approached by fellow chip giant Qualcomm about a possible takeover. While any deal is described as "far from certain," according to the paper's unnamed sources, it would represent a tremendous fall for a company that had been the most valuable chip company in the world, based largely on its x86 processor technology that for years had triumphed over Qualcomm's Arm chips outside of the phone space.

It would also be a massive coup for Qualcomm, which re-entered the desktop processor market this year as a part of Microsoft's AI PC strategy after years of dominance in mobile processors.

Intel, meanwhile, is arguably in its weakest position in years - while many of its businesses are still profitable, the company announced substantial cuts, shifts in strategy, and a 15-plus percent downsizing of its workforce this August after reporting a $1.6 billion loss.

At the time, Intel CEO Pat Gelsinger said the company would stop all non-essential work and has since announced it will spin off its chipmaking business, a part of the company that it had long touted as a strength over rival AMD and the many fabless chipmakers that rely on entities like Taiwan's TSMC to produce all of their actual silicon.

Intel, too, recently had to partially rely on TSMC to produce its most cutting-edge chips as it continues to rebuild its own manufacturing efforts (the costs of which are responsible for most of Intel's recent losses.) And its own 18A manufacturing process reportedly ran into some recent trouble.

Many of Intel's woes are about silicon leadership, not just manufacturing or profits - the company isn't a big player in AI server chips yet, nor even necessarily a notable small one like AMD; its attempts to produce its own GPUs for gamers and creators have yet to impress. And while Qualcomm, AMD, and Apple are all still smaller players in laptops, Intel has now twice overhauled how it makes flagship laptop chips to combat the growing threat of their seeming battery life and integrated graphics advantages.

While Intel's chief rival, AMD, also had hard times over the years and had to claw its way back, gamers helped AMD every step of the way. Aside from the Nintendo Switch, whose processors are made by Nvidia, every major game console for the last decade has featured an AMD chip - and Intel reportedly lost out on a chance to change that with the future PlayStation 6.