A potential deal to buy Intel could accelerate Qualcomm's diversification but will burden the smartphone chipmaker with a loss-making semiconductor manufacturing unit that it may struggle to turn around or sell,

An analyst with Gabelli Funds says a deal for Qualcomm to buy struggling chip rival Intel may not make too much sense.

As Intel strives to improve its financial performance, rumors of a potential acquisition by Qualcomm—likely a partial takeover—have surfaced. However, the success of such a deal hinges significantly on external factors,