Intel missed key markets like smartphones and AI, leading to its decline. A potential Qualcomm-Intel merger would be challenging and may not boost their AI presence. Investing in Intel is risky, with the company needing major changes to avoid further trouble.

A reported Qualcomm proposal to take over Intel was cheered by investors, but analysts question the practicality of such a deal given Intel's debt and Qualcomm's weak cash position.

Intel shares have plummeted in recent months as it cut jobs, suspended its dividend and faced a high-profile board member resignation.

The embattled chip giant has become a takeover target in recent days, but the tough act of separating the pros from the cons make a takeover unlikely.

Qualcomm has approached the once-dominant chipmaker Intel for a potential buyout, turning the spotlight on the portfolio of products these chip companies have to offer.

One analyst notes that Intel’s situation doesn’t seem dire enough for the company to settle for a “fire sale.” Plus, Qualcomm could see Intel’s foundry assets as a headache.