There's no end to the excitement for Intel (NASDAQ: INTC), it seems. After shares surged earlier this week on a partnership with Amazon and a $3 billion contract with the Defense Department, they jumped again late Friday on reports that Qualcomm (NASDAQ: QCOM) had approached its rival about a possible takeover, showing the struggling semiconductor company could be in play.

Intel stock closed up 3.3% on the news, after jumping as much as 9.5% when the story first broke. Qualcomm closed down 2.9% after sinking 6% earlier, showing Qualcomm investors didn't like the idea of a tie-up between the two chip giants.

Could Qualcomm buy Intel?

Just before markets closed, The Wall Street Journal reported that Qualcomm had approached Intel about an acquisition in recent days. Such a deal, if it passed regulatory muster, would be one of the biggest in the history of the tech industry.

The news took investors by surprise, as Intel was not said to be seeking "strategic options" such as a buyout and is working on a massive restructuring that includes laying off 15% of its workforce. The stock plunged in early August when it announced the news, which also included disappointing second-quarter results, weak guidance, and elimination of its dividend.

It's unclear what Qualcomm's aim would be in an acquisition, though it likely sees an opportunity to consolidate a dominant position in the PC market. However, Qualcomm is best known for its wireless components.

Considering the struggles at Intel's foundry business, Qualcomm could seek to sell that business if a deal were to go through.

What it means for Intel

A deal seems unlikely to go through, and CEO Pat Gelsinger would presumably be reluctant to sell the company with the stock trading near a 20-year low.

Still, the news raises a prospect that investors hadn't fully considered. Perhaps Intel would be best off opening up a bidding war for the company, as there would likely be several suitors. I think it would take more failures at the company before that happened, but investors understandably like the idea of an interested buyer.

Stay tuned to more developments around Intel, as the news around the chip stock is moving fast.

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