Yesterday, Qualcomm (QCOM) soared on news that mobile chip company was looking at making a bid for NXP Semi (NXPI). Qualcomm oddly surged on the proposed merger. My views of a merger was very positive. Oddly though, Mizuho Securities actually upgraded Qualcomm on the "rumor". The analyst placed a $75 target on the stock and Qualcomm reached over $70 on the news. Mizuho believes a deal with NXP would make Qualcomm the first end-to-end semiconductor auto supplier. Such a position would be huge as the connected and self-driving cars take off. Investors need to take some caution as no signs exist that the deal anything but in the preliminary stages. A competitor could even swoop in and offer a bigger premium. Also, don't forget that NXP Semi surged on the big accretive deal with Freescale Semi setting the stage for a peak in the stock. A similar situation could be in the works with Qualcomm. Disclosure: Long QCOM