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.

A late-Friday report that Qualcomm recently made a "takeover approach" to Intel sent the latter company's shares higher.

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% on the report. The deal, if it were to happen,