Qualcomm has in recent days approached Intel to explore a potential acquisition of the troubled chipmaker, a source familiar with the situation says, in what could be a transformational deal in the sector but faces many hurdles.

Qualcomm has recently approached Intel with a potential takeover proposal.According to a source on Friday, Qualcomm has reached out to Intel in recent days to discuss a possible acquisition of the struggling chipmaker.

Intel's shares reversed course to rise 8%, while Qualcomm fell 4% in afternoon trade. Intel has been attempting to turn its business around by focusing on its chip foundry unit and artificial intelligence processors,