Equity analysts are skeptical about the merits of a possible combination of Qualcomm Inc. and Intel Corp., after a recent report said the former had approached the latter about a takeover. On Wednesday,

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.

Rumors about Qualcomm's attempt to take over Intel have been intensifying, despite various sources suggesting that "everything is still in the early stages." The market remains highly skeptical about Qualcomm fully acquiring the much larger Intel,

Qualcomm has approached the once-dominant chipmaker Intel for a potential buyout, turning the spotlight on the portfolio of products these chip companies have to offer.

Doubts about the Qualcomm-Intel deal stem from uncertainty over how Intel's manufacturing fits into Qualcomm's design focus.

One analyst notes that Intel’s situation doesn’t seem dire enough for the company to settle for a “fire sale.” Plus, Qualcomm could see Intel’s foundry assets as a headache.

Key Takeaways Qualcomm reportedly came to Intel recently with interest in a potential takeover.Such a deal could offer a lifeline for Intel's foundry business and position Qualcomm as a dominant player in the PC processor market.