Rumored Intel sale of modem business to Apple weighs on Qualcomm stock

Wallace Witkowski for MarketWatch:

A possible deal between Intel Corp. and Apple Inc. over smartphone modems pressured shares of Qualcomm Inc. and weighed on shares of Micron Technology Inc. on Tuesday, as analysts debated whether Intel would sell off memory assets next.

Late Monday, The Wall Street Journal reported that Intel was in advanced talks to sell its modem-chip business to Apple for $1 billion or more. Such a deal has been the subject of speculation since Intel announced a planned exit from the smartphone modem business back in April following a licensing settlement between Apple and Qualcomm.

Intel shares rose 0.7% to $51.71 in recent activity, while Apple shares were up 0.5% at $208.30… While the PHLX Semiconductor Index SOX, +1.23% was up 1.1% and most chip makers were seeing stock gains, there were two noticeable decliners Tuesday: Qualcomm and memory chip maker Micron. At last check, Qualcomm shares were down 2.5% at $74.04 and Micron shares were down 0.6% at $46.91.

MacDailyNews Take: Good.

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