Amid a report in The Wall Street Journal saying Apple (AAPL - Get Report) is looking to develop products using Intel (INTC - Get Report) chips amid its dispute with Qualcomm QCOM, TheStreet's founder and Action Alerts PLUS Portfolio Manager Jim Cramer said Qualcomm is playing with fire. 

"I think they need to work out some sort of settlement," Cramer said, adding that Qualcomm is not invincible. 

Cramer also thinks Qualcomm needs to close on NXP Semiconductors (NXPI - Get Report) and should pay $120 a share, above its initial 

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