Intel missed key markets like smartphones and AI, leading to its decline. A potential Qualcomm-Intel merger would be challenging and may not boost their AI presence. Investing in Intel is risky, with the company needing major changes to avoid further trouble.

The embattled chip giant has become a takeover target in recent days, but the tough act of separating the pros from the cons make a takeover unlikely.

A reported Qualcomm proposal to take over Intel was cheered by investors, but analysts question the practicality of such a deal given Intel's debt and Qualcomm's weak cash position.