Alphawave IP Group (AWE) AI Stock Analysis

• Market Cap: £1.49B
• Dividend Yield: N/A
• Average Volume (3M): 1.29M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.12
• Revenue Growth: 37.87%
• EPS Growth: -106.99%
• Country: UK
• Employees: 991
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): -0.06
• Shares Outstanding: 787,027,900
• 10 Day Avg. Volume: 1,504,133
• 30 Day Avg. Volume: 1,289,460
• PEG Ratio: 0.91
• Price to Book (P/B): 1.58
• Price to Sales (P/S): 2.52
• P/FCF Ratio: -9.67
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: 229.00p ▲(6.71% Upside)

Alphawave IP Group's overall stock score is driven by the positive impact of the Qualcomm acquisition, which provides financial stability and strategic alignment. However, financial performance challenges and valuation concerns weigh on the score. Technical indicators show bullish momentum, but caution is advised due to overbought signals.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Alphawave's products and services, suggesting a solid market position and potential for future expansion.

Business Model

The licensing model provides a scalable revenue stream with potential for high margins, as it allows Alphawave to leverage its IP across multiple sectors without significant incremental costs.

Balance Sheet Health

A stable balance sheet with a manageable debt-to-equity ratio suggests financial stability, providing Alphawave with the flexibility to invest in growth opportunities and weather economic fluctuations.

Negative Factors

Profitability Challenges

Persistent profitability challenges, as indicated by negative net and EBIT margins, could hinder long-term financial sustainability and limit reinvestment in growth initiatives.

Cash Flow Management

Inconsistent operating cash flow and negative free cash flow suggest operational inefficiencies, which may impact Alphawave's ability to fund operations and invest in future growth.

Equity Decline

A decline in stockholders' equity could indicate financial strain, potentially affecting Alphawave's ability to secure financing and maintain investor confidence.

Alphawave IP Group Business Overview & Revenue Model

Company Description

Alphawave IP Group (AWE) is a leading provider of high-speed connectivity solutions, specializing in semiconductor intellectual property (IP) for data centers, telecommunications, and consumer electronics. The company focuses on developing advanced IP cores that enable high-performance and efficient data processing and transmission. Its core products include high-speed SerDes (Serializer/Deserializer) technologies, which play a crucial role in the functioning of various digital communication systems, as well as other related IP offerings that support next-generation networking and computing architectures.

How the Company Makes Money

Alphawave IP Group generates revenue primarily through the licensing of its semiconductor intellectual property to a wide range of customers, including major technology companies and manufacturers in the semiconductor industry. The company typically charges licensing fees based on the use of its IP cores, which can be structured as upfront payments or royalties derived from the sales of products incorporating its technology. Additionally, AWE may engage in partnerships and collaborations with other firms, enhancing its market reach and expanding its technology portfolio. The company also benefits from providing design services and technical support to its clients, which further contributes to its revenue streams.

Alphawave IP Group Financial Statement Overview

Summary

Alphawave IP Group shows a mixed financial performance. While the balance sheet is stable with a manageable debt-to-equity ratio, challenges in profitability and cash flow management are evident. The company needs strategic improvements to sustain growth and profitability.

Income Statement

Alphawave IP Group has shown a mixed performance in its income statement. The gross profit margin is relatively healthy, indicating efficient cost management. However, the company has been facing challenges with negative net and EBIT margins, which could be a concern for long-term profitability. Revenue growth has been inconsistent, with fluctuations over the years. The recent decline in total revenue and net income suggests potential instability.

Balance Sheet

The balance sheet of Alphawave IP Group shows a moderate level of risk with a manageable debt-to-equity ratio. The equity ratio indicates a strong position in terms of asset financing through equity. However, the declining stockholders' equity in recent years could be a potential risk factor. The company needs to maintain its leverage at sustainable levels to avoid liquidity issues.

Cash Flow

The cash flow statement reveals challenges in maintaining positive free cash flow, as the company has experienced negative free cash flow in recent periods. Operating cash flow has also been inconsistent, reflecting potential operational inefficiencies. The high capital expenditures could be impacting free cash flow negatively. The company needs to improve its cash flow management for better financial health.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	307.59M	321.72M	185.41M	89.93M	32.95M
Gross Profit	181.09M	165.35M	124.63M	84.73M	31.40M
EBITDA	9.09M	-1.14M	32.50M	26.51M	17.84M
Net Income	-42.52M	-51.00M	-1.09M	9.43M	12.21M
Balance Sheet
Total Assets	1.07B	866.59M	917.03M	568.28M	51.71M
Cash, Cash Equivalents and Short-Term Investments	180.16M	101.29M	186.23M	500.96M	14.04M
Total Debt	371.64M	237.06M	225.13M	7.83M	6.86M
Total Liabilities	579.65M	398.14M	441.19M	40.51M	29.05M
Stockholders Equity	489.75M	468.45M	468.27M	527.77M	22.65M
Cash Flow
Free Cash Flow	-80.20M	-57.81M	-27.63M	16.73M	13.85M
Operating Cash Flow	10.20M	15.83M	-12.09M	18.89M	14.52M
Investing Cash Flow	-74.77M	-92.63M	-433.75M	-24.21M	-624.00K
Financing Cash Flow	143.69M	-12.01M	205.96M	514.73M	-2.37M

Alphawave IP Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 214.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:AWE, the sentiment is Positive. The current price of 214.6 is above the 20-day moving average (MA) of 196.70, above the 50-day MA of 189.58, and above the 200-day MA of 162.08, indicating a bullish trend. The MACD of 7.03 indicates Negative momentum. The RSI at 77.78 is Negative, neither overbought nor oversold. The STOCH value of 86.40 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:AWE.

Alphawave IP Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OXIG	76 Outperform	$1.04B	40.82	4.64%	1.05%	-5.39%	-73.52%
SPT	68 Neutral	―	―	1.92%	1.26%	2.34%	-45.30%
CML	66 Neutral	£48.95M	-2,681.82	2.28%	3.44%	-21.33%	-11.35%
AWE	63 Neutral	£1.49B	-10.65	-44.94%	―	37.87%	-106.99%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NANO	44 Neutral	£17.74M	-6.51	―	―	-3.25%	-172.09%
IQE	42 Neutral	£54.35M	-1.08	-37.55%	―	-24.75%	-110.79%

Alphawave IP Group Corporate Events

Alphawave IP Group Secures Acquisition by Qualcomm Subsidiary

Alphawave IP Group has announced a recommended acquisition by Aqua Acquisition Sub LLC, a subsidiary of Qualcomm. This acquisition, structured as a court-sanctioned scheme, comes amidst economic uncertainties affecting Alphawave’s operations. To support its financial stability, Alphawave has secured a $20 million bridge loan from Qualcomm, which will help manage its working capital and corporate needs. This move is expected to stabilize Alphawave’s financial position and facilitate the acquisition process, potentially strengthening its industry positioning under Qualcomm’s ownership.

Alphawave IP Group’s Acquisition by Qualcomm Subsidiary Clears Regulatory Hurdles

Alphawave IP Group has announced the satisfaction of regulatory conditions for its acquisition by Aqua Acquisition Sub LLC, a subsidiary of Qualcomm. This acquisition, which is being executed through a court-sanctioned scheme, is set to proceed following the necessary approvals, with the final court hearing scheduled for December 16, 2025. The acquisition is expected to enhance Qualcomm’s position in the semiconductor market by integrating Alphawave’s high-speed connectivity solutions.

Alphawave IP Group Advances Towards Qualcomm Acquisition

Alphawave IP Group has announced the progress of its acquisition by Aqua Acquisition Sub LLC, a subsidiary of Qualcomm. The acquisition has cleared several regulatory hurdles, including approvals from the UK government, the U.S., Germany, and Canada, with the final regulatory condition expected to be satisfied before the Sanction Hearing on December 16, 2025. The completion of the acquisition is anticipated to strengthen Alphawave’s market position and align with Qualcomm’s strategic goals, potentially impacting stakeholders positively.

Alphawave IP Group Issues Shares for Executive Incentive Plan

Alphawave IP Group plc announced the issuance of ordinary shares to settle the vesting of awards under its Long Term Incentive Plan for certain senior executives. This move highlights the company’s commitment to rewarding its managerial team and aligns with its strategic goals, potentially impacting its market positioning by reinforcing executive motivation and retention.

Qualcomm’s Subsidiary to Acquire Alphawave IP Group

Alphawave IP Group has agreed to a recommended acquisition by Aqua Acquisition Sub LLC, a subsidiary of Qualcomm. This acquisition is structured as a Court-sanctioned scheme of arrangement and involves an Exchangeable Securities Offer to Alphawave’s shareholders. The acquisition is expected to enhance Qualcomm’s position in the semiconductor industry by integrating Alphawave’s advanced connectivity solutions.

Alphawave IP Group Issues Shares to Key Executives Under Incentive Plan

Alphawave IP Group has announced the issuance of ordinary shares to fulfill the vesting of awards under its Long Term Incentive Plan for certain managerial personnel. This move involves the distribution of shares to key executives, including Rahul Mathur, Babak Samimi, and Mohit Gupta, reflecting the company’s commitment to rewarding its leadership and aligning their interests with shareholders. The issuance of shares is expected to enhance the company’s operational focus and strengthen its market positioning by incentivizing its top management.

Alphawave IP Group Announces Corporate Secretary Change and Office Relocation

Alphawave IP Group has announced a change in its company secretary, appointing Prism Cosec Limited to replace MUFG Corporate Governance Limited. Additionally, the company has relocated its registered office to Highdown House in Worthing, West Sussex, UK. These changes are part of the company’s ongoing efforts to streamline its corporate governance and operational efficiency.

Alphawave IP Group Executives Acquire Shares, Signaling Confidence

Alphawave IP Group announced that key managerial personnel have purchased shares under the company’s Employee Share Purchase Plan. Rahul Mathur, the Chief Operating and Chief Financial Officer, acquired 1,806 ordinary shares, while Mohit Gupta, EVP & GM of IP and Custom Silicon, purchased 9,170 shares. This move reflects confidence in the company’s future prospects and aligns the interests of the management with shareholders, potentially impacting stakeholder perceptions positively.

Alphawave IP Group Updates Share Capital Structure

Alphawave IP Group has announced that as of September 30, 2025, the company’s issued share capital consists of 787,027,923 ordinary shares, each with voting rights. This update is significant for shareholders as it provides the necessary denominator for calculating their interest or changes in interest in the company, in compliance with the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules.

Alphawave IP Group Reports H1 2025 Results Amid Qualcomm Acquisition

Alphawave IP Group reported its interim results for the first half of 2025, highlighting a 13% increase in revenue to $103 million despite global economic uncertainties and customer hesitations due to its impending acquisition by Qualcomm. The company faced a significant operating loss of $172.8 million, impacted by non-recurring costs related to the acquisition and other impairments. The acquisition by Qualcomm, valued at $2.4 billion, is seen as a testament to Alphawave’s strategic progress and platform quality, although it has led to deferred customer purchases and a 29% drop in bookings. The company remains focused on executing its strategy and supporting Qualcomm in completing the acquisition process.