Qualcomm, Intel deal on PCs/datacenter would make strategic sense, says JPMorgan

JPMorgan analyst Samik Chatterjee notes that on Friday, press reports indicated that Qualcomm (QCOM) has expressed interest in a takeover of Intel (INTC), which despite the recent share price performance for Intel shares would still be a large transaction in its own right. That said, while the firm does not have any confirmation from the company in relation to the press reports, it believes there are some aspects and more so certain parts of Intel that are a strong fit for Qualcomm, and an acquisition focused on those assets, including PCs as well Datacenter Servers, would make strategic sense. JPMorgan would expect Qualcomm to have limited interest in retaining stake in Mobileye and to look at the Foundry business as providing near-term opportunity around cost saves, while looking for a longer-term roadmap, which involves an independent foundry company. The firm has an Overweight rating on Qualcomm’s shares.