Qualcomm Acquires Alphawave Semi in $2.4B Deal Amid Data Center Push
Qualcomm (QCOM) on Monday announced a deal to acquire British firm Alphawave Semi as the chipmaker looks to expand its push into the world of data centers.
Alphawave specializes in "high-speed wired connectivity and compute technologies delivering IP, custom silicon, connectivity products and chiplets," as mentioned in the Monday press release. The British company's technology is primarily used in data centers, which play a crucial role in training artificial intelligence products.
The acquisition deal values Alphawave at approximately $2.4 billion, leading to a significant surge in Alphawave shares listed in London. The shares soared nearly 25%, marking their highest point since March 2024. This increase, although substantial, is comparatively smaller than the surge witnessed back in April, when Qualcomm expressed interest in acquiring Alphawave, resulting in a 46% spike in shares in just one day. Concurrently, Qualcomm shares experienced a modest 1% rise in premarket trading.
Accelerating Expansion into Data Centers
Qualcomm stated that the acquisition is intended to expedite and provide essential assets for its expansion into data centers. The company anticipates the deal to be finalized in the first quarter of 2026.
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Recent Financial Performance
In its most recent quarterly report released at the end of April, Qualcomm exceeded fiscal second-quarter estimates, driven by a 12% year-over-year growth in its chip business for smartphones. However, the revenue forecast for the current quarter fell slightly below analysts' projections.
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