A takeover of Intel could push Qualcomm into new realm: Strategist

Amid reports that Qualcomm (QCOM) approached Intel (INTC) about a possible takeover, Futurum Group chief market strategist Cory Johnson sits down with Josh Lipton and Julie Hyman on Market Domination to take a closer look at what a potential acquisition would mean for the two chip companies. “This would be the biggest deal in the history of the semiconductor industry, ever,” Johnson says, explaining, “Intel was once the largest semiconductor company in the world. It is no longer… They are still very much wedded to selling chips into PCs because their business is selling chips into the data center has just not worked out. They've missed so many product cycles with Nvidia (NVDA) cleaning their clocks in the data center, and that shows no sign of any immediate change.” Johnson notes that Intel’s recently announced deal with Amazon Web Services (AMZN) could give some hope that “they're going to be able to get some of their semiconductor manufacturing business into a better place as they build out facilities all around the world, and especially in the US.” Looking at how a merger would complement Qualcomm’s and Intel’s respective portfolios, Johnson says “Intel [has] things that Qualcomm really doesn't have." "It's got manufacturing prowess; it's got a place in data centers and in PCs. Qualcomm has some plans around PCs, but Qualcomm is largely a smartphone company. Most of their business is making chips for smartphones…. that is something that Intel's famously missed out on for decades now," he says. If Qualcomm were to take over Intel, it could fundamentally change the company’s business as “historically [Qualcomm] has not made their own chips.” An acquisition would have to be approved by regulators, but the strategist believes in this instance, national security interests may trump antitrust concerns: “We really need a strong chip industry in this country to fight against the risk of the concentration we have in Taiwan. And something that would help Intel survive and do better, which this merger might be seen as might be welcomed by Washington.”
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[@FourTetTrack]

If intel engages with McKinsey, Accenture, etc, that will be the end of it. As Cory mentioned, this is a consultancy dream (to milk to oblivion).

[@h.b.9694]

too many haters who do not know the semiconductor industry. I believe it will be sold at around 40$. some will make lots of money with it...

[@MichaelMcCausland-pg6qs]

The valley is in chaos and opportunity is abundant

[@ichoudhury007]

Let Hock Tan have it. He knows how to deal with gobbling up companies. He nearly gobbled up Qualcomm but at that time they had HDQ in the wrong place which raised national security risk.

[@ChemicalReactionMan]

I doubt the board would accept anything under $30

[@MichaelMcCausland-pg6qs]

The fabrication companies produce the machines to produce the chips and deep human resource incompetence

[@QQ-td9id]

Dream on. QCOM couldn't (not allowed to) even buy NPX.

[@MichaelMcCausland-pg6qs]

You will only be allowed if the unionization of the fabricators is allowed and that is underway

[@ps3301]

Zero benefit even if intel is sold.

[@MegaStoneTV]

Foundry should be spun off and the chip design business can be taken on by Qualcomm

[@markrudh1096]

@@MegaStoneTV TSMC should take over their fabs.

[@notanymore9471]

That’s dumb af. Yeah let’s just hand I’ve the fab business to the Asians because that always worked out good in the past.

[@YaoAnne-j7g]

!I recently sold some of my long-term position and currently sitting on about 250k, do you think Nvidia is a good buy right now or I have I missed out on a crucial buy period, any good stock recommendation on great performing stocks or Crypto will be appreciated

[@HaholBarton]

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[@DerickSams]

I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $100k passively by just investing through an advisor, and I don't have to do much work. Inflation or no inflation, my finances remain secure. So I really don't blame people who panic.

[@HaholBarton]

Without a doubt! Kristine Lynn Weber is a trader who goes above and beyond. she has an exceptional skill for analyzing market movements and spotting profitable opportunities. Her strategies are meticulously crafted based on thorough research and years of practical experience.

[@YaoAnne-j7g]

nice! once you hit a big milestone, the next comes easier.. How can i reach her if you don't mind me asking?

[@HaholBarton]

look up her name on the web for her website.

[@kenw5104]

Whaaattt?? Oh my god

[@MichaelMcCausland-pg6qs]

This is not going to go through

[@MichaelMcCausland-pg6qs]

It’s a monopoly of the worst kind

[@kahvac]

Intel ... $10 - $12 later this year.