Intel ( INTC ) shares have gained ground as investors reacted to a Wall Street Journal report late Friday that said Qualcomm ( QCOM ) had made a “takeover approach” to the beleaguered chipmaker.

However, securities analysts are less keen on the idea, with those at Bank of America calling it “intriguing but perhaps impractical.”

A Qualcomm takeover could offer Intel a lifeline for its struggling foundry business , which produces chips for outside customers, the firm noted in a research note released on Saturday. Intel could fill its manufacturing facilities with Qualcomm products, and Qualcomm could become a significant customer for Intel’s silicon wafers.

That said, Intel is saddled with more than $50 billion in debt, and Qaulcomm has just $13 billion in cash on its balance sheet , making a takeover deal difficult, the BofA analysts said. In addition, the move could “create confusion given potential for headcount and roadmap disruptions,” making such a merger a potential boon for rivals such as Nvidia ( NVDA ) and Advanced Micro Devices ( AMD ).

Regulatory Issues Loom

For a Qualcomm-Intel deal to go through, it likely would require a level of buy-in from the U.S. and Chinese governments, analysts at JPMorgan wrote over the weekend.

Qualcomm could look for the U.S. government to provide a capital commitment to the foundry business, the success of which is important to domestic semiconductor production.

Then there’s regulatory approval from China, which analysts acknowledge would be a major obstacle for such a move. The country “historically has taken years to even consider medium sized transactions,” the BofA analysts said.

Over the weekend, Apollo Global Management offered to invest as much as $5 billion in Intel, according to a Bloomberg report. Intel previously agreed to sell Apollo a 49% stake in a chipmaking site in Ireland in June.

Shares of Intel gained 3.3% on Monday, while Qualcomm stock was down 1.8%.