However, the WSJ reports that a deal is "far from certain," according to sources familiar with the matter. Intel may or may not be receptive to the deal, which makes sense when you consider Qualcomm could tear Intel apart by selling assets or part of the company to other buyers.

Qualcomm recently approached Intel to explore a potential acquisition of the troubled chipmaker, a source familiar with the situation said, in what could be a transformational deal in the sector but faces many hurdles.

It’s conceivable that CEO Cristiano Amon imagines some grand alliance with Intel to really challenge Nvidia in AI or sees the possibility of throwing Intel a financial lifeline or simply, he thinks its stock is too cheap.