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.

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.

Qualcomm Inc. has approached Intel Corp. to discuss a potential acquisition of the struggling chipmaker, people with knowledge of the matter said, raising the prospect of one of the biggest-ever M&A deals.