Qualcomm Stock (QCOM) Cruises Higher as $1.3B Alphawave Takeover Talks Win Extra Time

Shares in U.S. chipmaker Qualcomm (QCOM) were stronger today on hopes that a $1.3 billion takeover of U.K. semiconductor IP firm Alphawave was moving closer.

Deadline Extension

QCOM stock was up 4% in early trading after Alphawave IP Group said the U.K. takeover panel had agreed to another extension of the deadline for a formal “put up or shut up” takeover bid from May 12 to May 27. This followed a recent extension from April 29 to May 12.

Alphawave said it remained in discussions with Qualcomm and that both parties had consented to extend the deadline further.

It was back in April that Qualcomm first confirmed that it was considering making an offer. No price has been mentioned to date, but the market value of Alphawave, which is listed in the U.K., currently stands at around £1 billion or around $1.3 billion.

AWE shares rose 5% today although there is still no certainty that a firm offer will be made.

AI Boost

It is not only Qualcomm that is said to be interested in making a bid for Alphawave. Arm Holdings (ARM) was also reportedly interested in the firm which makes a crucial technology, known as “serdes”, used in the building of AI processors. However, ARM has since backed out of any potential deal.

A move to acquire Alphawave would not only help Qualcomm build up its AI technology arsenal but may also be crucial in solidifying its partnership and supply base in these times of trade and economic uncertainty.

In April, Qualcomm bought MovianAI, the generative AI division of VinAI, which is part of Vietnam’s Vingroup. MovianAI is known for its work in generative AI, computer vision, and machine learning.

Is QCOM a Good Stock to Buy Now?

On TipRanks, QCOM has a Moderate Buy consensus based on 8 Buy, 8 Hold and 1 Sell rating. Its highest price target is $245. QCOM stock’s consensus price target is $178.31 implying an 17.60% upside.

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