Qualcomm acquires Alphawave for $2.4B to expand into the AI data center market

Qualcomm is making a big move into the AI data center space. On Monday, the U.S. chipmaker announced that it’s acquiring the British semiconductor company Alphawave for approximately $2.4 billion, Reuters reported. The news sent Alphawave shares soaring nearly 25%. The deal is expected to close in the first quarter of 2026.

This is Qualcomm’s second major AI acquisition in less than two months. Back in April, the tech giant picked up the generative AI division of Vietnamese startup VinAI, a move aimed at boosting its on-device AI capabilities. The Alphawave deal, meanwhile, puts Qualcomm in a stronger position to compete in the growing AI data center market.

Alphawave, listed on the London Stock Exchange under the ticker AWE.L, develops high-speed connectivity technology used in data centers. It becomes the latest in a wave of UK-based tech companies snapped up by American buyers, with valuations still lagging and public markets less attractive for homegrown listings.

For Qualcomm, this isn’t just about another acquisition—it’s about shifting gears. Known for its dominance in smartphone chips, the company is pushing harder into areas like AI infrastructure, data centers, and PCs to rely less on phones. That shift has picked up urgency as Apple, one of Qualcomm’s biggest clients, keeps moving chip production in-house.

“Qualcomm also made two alternative all-share offers for Alphawave on Monday after multiple deadline extensions from the UK takeover panel. However, Alphawave plans to unanimously recommend the cash offer to its shareholders, deeming it fair and reasonable,” Reuters reported.

“The acquisition of Alphawave Semi aims to further accelerate and provide key assets for Qualcomm’s expansion into data centers,” the company said.

Cristiano Amon, Qualcomm’s president and CEO, said Alphawave “has developed leading high-speed wired connectivity and compute technologies that are complementary to our power-efficient central processing unit and neural processing unit cores.”

Alphawave shareholders will get 183 pence per share—a massive 96% premium over the stock’s closing price back on March 31, right before Qualcomm first showed interest. Even with the stock now trading above the offer price, the board plans to unanimously recommend the deal, calling it “fair and reasonable.”

Qualcomm didn’t stop at one offer. It made two alternative all-share bids before settling on this all-cash proposal, after several deadline extensions by the UK takeover panel.

Meanwhile, SoftBank-owned Arm had also been in the mix, exploring a takeover earlier this year, but ultimately decided not to pursue it, according to sources cited by Reuters.

Jefferies analysts say the acquisition isn’t likely to hit any serious regulatory roadblocks, especially after Alphawave exited its China joint venture, WiseWave.