Can Completion of Qualcomm's Alphawave Buyout Deal Propel Its Shares?

Qualcomm Incorporated QCOM has completed the acquisition of U.K.-based chip firm Alphawave Semi for an enterprise value of approximately $2.4 billion. The buyout offers Qualcomm an opportunity to expand its presence in high-growth applications, including data centers, artificial intelligence (AI), data networking and data storage. With advanced technology solutions that are complementary to power-efficient CPU and NPU cores, Alphawave Semi delivers connectivity products and chiplets that drive faster, more reliable data transfer with higher performance and lower power consumption for 5G wireless, AI and data center applications. The acquisition, therefore, provides the firepower to enable Qualcomm to be the driving force of the next wave of AI innovation. Over the past few quarters, Qualcomm has aimed to expand its footprint in AI chips through focused R&D initiatives and strategic acquisitions. In April, the company acquired MovianAI, the former generative AI division of VinAI, a prominent Vietnam-based AI firm. The transaction provided Qualcomm access to VinAI’s comprehensive expertise in generative AI, machine learning, computer vision and natural language processing, significantly accelerating its fundamental AI research. The integration of VinAI’s portfolio with Qualcomm’s extensive R&D expertise facilitated the development of state-of-the-art AI-driven solutions for a wide range of industries, including smartphones, PCs, software-defined vehicles and more.Other Tech Firms Focusing on AI ChipsAdvanced Micro Devices, Inc. AMD has strengthened its position in the semiconductor market on the back of its evolution as an enterprise-focused company from a pure-bred consumer-PC chip provider. The latest MI300 series accelerator family strengthens its competitive position in the generative AI space. The accelerator from Advanced Micro is based on AMD CDNA 3 accelerator architecture. It supports up to 192 GB of HBM3 memory, enabling efficient running of large language model training (up to 80 billion parameters) and inference for generative AI workloads. Advanced Micro is also benefiting from strong enterprise adoption and expanded cloud deployments. Intel Corporation INTC has launched the Intel Core Ultra (Series 2) processors engineered to redefine mobile computing for a wide range of use cases, such as gaming, content creation, IT applications and various other businesses. This state-of-the-art lineup brings significant advancements in AI capabilities, improved performance and efficiency, setting new standards for AI computing. Intel has also introduced a new lineup of leading-edge processors to support AI workloads for edge devices. The Intel Core Ultra processors offer greater scalability, energy efficiency and impressive performance at the edge for a diverse range of use cases such as industrial IoT, autonomous vehicles and more.QCOM’s Price Performance, Valuation and EstimatesQualcomm shares have gained 10.7% over the past year compared with the industry’s growth of 35.3%.Image Source: Zacks Investment ResearchGoing by the price/earnings ratio, the company's shares currently trade at 14.3 forward earnings, lower than 33.8 for the industry and the stock’s mean of 16.89. Image Source: Zacks Investment ResearchEarnings estimates for fiscal 2026 and fiscal 2027 have increased 2% to $12.15 per share and 3.4% to $12.60, respectively, over the past 60 days.Image Source: Zacks Investment ResearchQualcomm currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intel Corporation (INTC): Free Stock Analysis Report QUALCOMM Incorporated (QCOM): Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks