Qualcomm to acquire Alphawave for $2.4 billion in AI push

Key Points

• Qualcomm will acquire Alphawave IP for $2.4 billion to expand beyond smartphone chips and strengthen its position in AI-powered data centers.
• Alphawave’s high-speed wired connectivity and compute technologies complement Qualcomm’s power-efficient CPU and NPU cores, including its next-gen Oryon CPU and Hexagon NPU processors.
• Alphawave shareholders will receive 183 pence per share—about a 96% premium—under a deal expected to close in the first quarter of 2026 after regulatory approvals.
• The acquisition aligns with a broader U.S. semiconductor trend toward onshoring production and increased investment in AI infrastructure amid shifting global supply chains.

On June 9, Qualcomm announced that it would purchase Alphawave IP Group for an estimated $2.4 billion in implied enterprise value. Qualcomm’s fully owned subsidiary, Aqua Acquisition Sub LLC, will carry out the acquisition as a strategic move to expand the company’s product line beyond smartphone chips and strengthen its presence in AI-powered data centers.

Qualcomm’s goal to satisfy the increasing demand for AI inferencing, a crucial component of next-generation data center performance, is in line with this most recent acquisition. Qualcomm hopes to provide enterprise customers with more potent, energy-efficient solutions by incorporating Alphawave’s compute and wired connectivity technologies.

Qualcomm to acquire Alphawave for $2.4 billion in AI push

Alphawave’s portfolio complements Qualcomm’s current technologies, according to Cristiano Amon, president and CEO of Qualcomm. “Alphawave’s high-speed wired connectivity and compute technologies are complementary to Qualcomm’s power-efficient CPU and NPU cores, which include their next-gen custom Qualcomm Oryon CPU and Qualcomm Hexagon NPU processors,” Amon said.

Alphawave shareholders will receive 183 pence per share in cash as a result of the acquisition, which is approximately 96% more than Alphawave’s closing price on March 31, the day before Qualcomm revealed its interest. Regulators are not expected to object strongly to the deal, in part because Alphawave exited its Chinese joint venture, WiseWave, on June 9. Qualcomm plans to close the deal in the first quarter of 2026, pending customary approvals and conditions.

Alphawave IP, a Canadian company with headquarters in the UK, focuses on high-speed chip interconnects, specifically serdes (serializer/deserializer) technology. These features are essential for increasing chip bandwidth and data processing speeds, which makes Alphawave a useful tool for Qualcomm’s aspirations in the fields of artificial intelligence and data infrastructure.

The action is a part of a larger trend in semiconductor strategy. U.S. chipmakers are rapidly adapting to geopolitical changes, tariffs imposed by Trump, and the continuous push for onshoring production. Qualcomm’s partnership with Alphawave puts it in a position to gain from a changing global supply chain as well as more investment in AI.

Some analysts contend that other AI-focused stocks may offer greater short-term upside with lower downside risk, despite Qualcomm’s strong long-term growth potential. A recent report identifies a top choice in the field for investors looking to gain exposure to cheap AI stocks that are taking advantage of changes in policy and industry tailwinds.

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