Qualcomm is negotiating a merger with Intel.

Qualcomm's current key is to establish AI chip competitiveness
1. Device-side AI cell phone chips: Qualcomm has a strong advantage in this area and is Apple's biggest competitor.
2. Device-side AI PC chips: With the gradual optimization of WoA (Windows on ARM), Qualcomm's advantage will gradually emerge.
3. AI server chips: Qualcomm's weak point.

In the face of the AI era, Qualcomm's best strategy is to quickly realize and expand its advantages in this area through mobile AI chips, while continuing to promote PC AI chips, and simultaneously constructing the advantages of the device-side (cell phone + PC) AI ecosystem, as well as rapidly strengthening the advantages of server AI chips through investment and M&A.

The acquisition of Intel will only help Qualcomm's AI PC chip business. But from Microsoft's commitment to WoA (its latest Surface models all use Qulacomm processors/ARM architecture), Qualcomm's growth in the PC market is only a matter of time. M&A with Intel can quickly expand Qualcomm's PC market share, but the price paid is not expensive, and even without this merger, Qualcomm can rely on its own strength in the AI PC market growth.

Intel's dominant position in the general server market is also limited attraction to Qualcomm. AI servers are the star of the server market of tomorrow, and it just so happens that AI servers are Intel's current weakness.

Qualcomm's cash, cash equivalents and marketable securities total about $13 billion, with a market capitalization of about $190 billion. Even if we first ignore the merger and acquisition of premiums, derivative fees, debt obligations and subsequent management costs, from Intel's market capitalization of about $93 billion, this merger and acquisition of Qualcomm's financial pressure is extremely large, and will have an immediate negative impact on profitability, the net interest rate may be from the current 20% + down to single digits or even a loss (foundry business is the biggest liability).

Qualcomm's latest quarterly capex was about $390 million, and it is less risky and more efficient to take the funds from Intel's merger and acquisition (estimated at $100 billion or more) to expand capex in pursuit of the growth of AI PCs and AI servers.

Considering the antitrust investigations in various countries, it is difficult for the merger to be finalized in the short term. This merger and acquisition is difficult to complete in the short term. Even if Qualcomm in order to reduce the financial and management pressure brought about by the merger and sale of some Intel assets, it is not a moment can be finalized. And the above uncertainty in this merger and acquisition in progress, very unfavorable Qualcomm stock trading atmosphere.

In this view, Qualcomm should not have a strong incentive to merge with Intel is this merger, if the merger occurs, Qualcomm can be said to be a disaster. My investigation and understanding is that Qualcomm in the internal discussion, the acquisition of Intel also holds a negative attitude. In that case, the rumor I heard may be correct that Qualcomm is cautiously and passively evaluating the feasibility of acquiring Intel because of pressure