According to the Zhuo Finance app, despite reports last week that Qualcomm (QCOM.US) is in talks to acquire Intel (INTC.US), analysts believe this transaction is unlikely to happen. At the same time, analysts believe that Apollo Global Management (APO.US) may invest in Intel.

Stifel analyst Ruben Roy stated: "Similar to other large transactions with high regulatory hurdles that have not passed, such as Nvidia (NVDA.US) acquiring ARM Holdings (ARM.US), Broadcom (AVGO.US) acquiring Qualcomm, and Qualcomm attempting to acquire NXP Semiconductors (NXPI.US), we believe that the deal between Qualcomm and Intel is unlikely to obtain regulatory approval."

This acquisition would allow Qualcomm to enter more semiconductor markets and bring in strategic corporate clients. According to Bank of America's data, the deal would also create the world's largest semiconductor company, with Qualcomm's revenue at $33 billion and Intel's revenue at $52 billion.

Lead analyst Vivek Arya of Bank of America stated: "However, we believe that in a challenging regulatory environment, the challenges outweigh the potential benefits, and the scale/CPU dominance is not favorable for a potential merger between Qualcomm and Intel."

Both companies heavily rely on sales in the Chinese market. China is Intel's largest market, accounting for 26% of its revenue in 2023. Meanwhile, approximately 60% of Qualcomm's revenue in 2023 comes from mainland China and Hong Kong. Qualcomm's sales to Chinese smart phone manufacturers grew by 40% in the first half of fiscal year 2024.

Bank of America points out that Intel has over $500 billion in debt, while Qualcomm has $13 billion in cash on its balance sheet, making this deal financially challenging.

It is worth noting that, insiders revealed that Apollo Global Management once considered investing up to $5 billion in Intel.

Wells Fargo & Co. stated that the possibility of a merger between Intel and Qualcomm is very low, but Apollo's 'equity investment' is much more feasible.

Wells Fargo & Co. analyst Aaron Rakers said: 'We believe that Apollo's investment will send bullish signals; however, the extent to which existing shareholder equity is diluted will be a key consideration. It is worth mentioning that in June of this year, Intel and Apollo announced an agreement: Apollo will lead an investment of $11 billion in Intel's Fab 34 factory in Ireland; Apollo will acquire 49% of the joint venture.'