Deutsche Bank skeptical on Qualcomm's rumored Intel acquisition

On Monday, Deutsche Bank acknowledged the circulating rumors about Qualcomm Inc . (NASDAQ:QCOM) contemplating a takeover offer for Intel Corp . (NASDAQ:INTC). The bank pointed out that although Intel's stock has seen a significant decline, dropping approximately 55% year-to-date, there is no confirmation of the takeover report.

Intel has been the subject of various deal-related speculations in recent weeks, including potential sales of its Altera division, Mobileye unit, and PC client segment, as well as discussions about spinning off its manufacturing operations. Despite these rumors, Intel has recently reiterated its dedication to the IDM 2.0 strategy, signaling its intention to persist with its current approach.

Deutsche Bank expressed skepticism regarding the likelihood of a successful acquisition of Intel by Qualcomm, citing formidable regulatory challenges. The bank also suggested that such a merger would necessitate extensive restructuring and divestitures to be financially beneficial.

The financial institution is keeping an eye on the developments but currently views the prospect of a Qualcomm-Intel deal as improbable. Deutsche Bank maintains that Intel's commitment to its existing strategy, which requires a considerable degree of patience, is a more likely scenario for the company's future.

In other recent news, Mobileye reported a robust Q2 growth with an 84% revenue increase, reaching $439 million. This surge was supported by increased EyeQ and SuperVision volumes. Despite facing challenges in the Chinese market, Mobileye remains optimistic about its long-term prospects in the region, particularly through collaborations with Zeekr on next-generation vehicles.

Several analyst firms have recently updated their outlook on Mobileye. Canaccord Genuity maintained a Buy rating with a steady price target of $27.00, while Deutsche Bank resumed coverage with a Hold rating and a price target of $15.00. Wolfe Research assumed coverage with a Peerperform rating, indicating a neutral stance on Mobileye's stock.

RBC Capital reduced its price target for Mobileye from $34 to $24, maintaining an Outperform rating. Citi also revised its price target from $53.00 to $32.00, while keeping a Buy rating on the stock.

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