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.

Intel will produce the specialized "AI fabric chip" for Amazon, using its 18A manufacturing process, which is the company’s most advanced chip manufacturing technology.

Shares of Intel Corp. INTC advanced 3.31% to $21.84 Friday, on what proved to be an all-around mixed trading session for the stock market, with the Dow Jones Industrial Average DJIA rising 0.09% to 42,

Chip giant Qualcomm made a takeover approach to rival Intel in recent days, according to people familiar with the matter. A deal for Intel, which had a market value of roughly $87 billion early Friday,

Patrick Moorhead, Moor Insights & Strategy CEO, joins 'Closing Bell Overtime' to talk recent reports that Qualcomm approached Intel about a takeover.

Intel stock surged late Friday after The Wall Street Journal reported that Qualcomm had approached Intel about a takeover in recent days. The Journal story cited people familiar with the situation. Intel and Qualcomm didn’t immediately respond to a request for comment on the report.