A string of downbeat earnings reports suggests weak telecom capital spending will take a toll on many companies. That includes some optical component high-flyers.
If approved, Qualcomm's acquisition would become the largest M&A deal in semiconductor history, surpassing the $36 billion that Avago paid for Broadcom in 2015.
Qualcomm faces integration, culture and business model risks with its potential purchase of the fast-growing NXP in what would be the biggest semiconductor acquisition in history.
The chip sector has been undergoing a huge wave of consolidation in the last year, and Qualcomm has several other attractive targets aside from NXP.