Qualcomm approached Intel about a takeover in recent days, the Wall Street Journal reported on Friday, citing people familiar with the matter.

Intel shares rose 8% following the report.

If the deal goes ahead, it would be one of the largest technology mergers of all time. Intel has a market capitalization of around $96 billion.

This would end a difficult period for Intel. The company’s stock suffered its biggest single-day drop in over 50 years in August after the company reported disappointing results. Intel stock is set to fall 53% in 2024 as investors raise doubts about the company’s costly chip manufacturing and development plans.

Qualcomm and Intel compete in several markets, including PC and laptop chips. However, unlike Intel, Qualcomm does not manufacture its chips itself, relying instead on companies such as Taiwan Semiconductor Manufacturing Company and Samsung for production.

On Monday, after a board meeting to discuss strategy, Intel CEO Patrick Gelsinger sent a memo to employees reiterating the company’s intention to invest heavily in its foundry business, a project that could cost $100 billion over the next five years. The company also said it was considering outside investment.

Intel has also missed the AI ​​boom that has captured the attention of the technology industry. Most advanced AI programs, such as ChatGPT, run on Nvidia graphics processors rather than Intel central processors, and Nvidia holds over 80% of the fast-growing market, according to analysts.

Qualcomm generates less revenue than Intel. The company reported revenue of $35.8 billion in fiscal 2023, while Intel generated $54.2 billion in the same period.

A deal of this magnitude would attract enormous regulatory scrutiny in a market where big deals have been difficult to close in recent years. In 2017, Broadcom made an offer to acquire Qualcomm for over $100 billion. The Trump administration blocked the deal the following year on national security grounds because Broadcom was based in Singapore at the time.

In 2021, the FTC filed suit to block Nvidia’s attempted purchase of Arm on antitrust grounds. The deal was canceled in 2022 after additional pressure from regulators in Europe and Asia.

Representatives from Qualcomm and Intel declined to comment.