Qualcomm is buying Alphawave for $2.4 billion. It offered 183 pence for each Alphawave share. This represents a 96% increase over the shares’ value on March 31. After the news, Alphawave’s stock rose over 22%. Qualcomm’s shares also went up by 4%.
Alphawave makes chip technology used in data centres. Qualcomm wants to grow in that market. Buying Alphawave will help it do that. Currently, Qualcomm generates the majority of its revenue from phone chips. But the company wants to depend less on that.
Qualcomm Wants to Grow in Data Centers
The deal provides Qualcomm with the tools to develop more advanced chips for data centres. This is important because an increasing number of companies are designing and manufacturing their own integrated circuits, also known as chips. Apple, for example, is using in-house chips in its devices.
The market for AI and data centre tech is growing fast. Qualcomm wants to be a strong player in that space. With this deal, it can move more quickly and compete more effectively. The plan, “Qualcomm to Buy Alphawave IP,” is a big step toward that goal.
Qualcomm to Buy Alphawave IP in Cash Deal
Qualcomm plans to buy UK chipmaker Alphawave IP for 183 pence per share. That’s nearly double the stock’s price on March 31, before Qualcomm showed interest. After the news, Alphawave shares jumped over 22%. Qualcomm’s stock also rose about 4%.
On Monday, Qualcomm offered Alphawave two other deals using only stock. However, Alphawave preferred the cash offer. The board stated that it would fully support this deal and requested that shareholders approve it. They believe the price is fair and reasonable.
Why the Deal Matters
Analysts at Jefferies don’t think regulators will block the deal. Alphawave has already ended its joint venture with a Chinese partner, WiseWave, which removes one primary concern.
Qualcomm’s CEO, Cristiano Amon, said Alphawave’s fast data tech fits well with Qualcomm’s power-efficient chips. This includes both CPUs and neural processors. Together, they can make better and quicker chip solutions.
SoftBank’s Arm also considered buying Alphawave but ultimately chose not to proceed. The deal between Qualcomm and Alphawave is set to close in early 2026. This move shows Qualcomm’s goal to expand in the high-speed chip market. The “Qualcomm to Buy Alphawave IP” deal could help both companies grow stronger in the future.