Is QUALCOMM Incorporated (QCOM) Set to Acquire a Startup?

QUALCOMM Incorporated (NASDAQ:QCOM) is one of the 10 Best Semiconductor Stocks to Buy According to Billionaires.

Reuters reported on June 24 that QUALCOMM Incorporated (NASDAQ:QCOM) is set to acquire AI startup Modular in an all-stock deal worth nearly $4 billion. Through the acquisition, Qualcomm will gain software that enables AI models to run across different chips without requiring developers to write separate code for each processor.

The acquisition also puts Qualcomm in competition with CUDA, the software platform that has been central to Nvidia’s dominance in AI by helping build a large developer ecosystem around its chips.

As part of the deal, Qualcomm expects to issue up to 19.2 million shares of its common stock to Modular’s equity holders.

Is QUALCOMM Incorporated (QCOM) Set to Acquire a Startup?

Founded in 2022, Modular has raised $380 million, including $250 million in a September funding round. Reuters also cited The Information reporting that Qualcomm is also discussing a potential $8 billion to $10 billion acquisition of artificial intelligence chip startup Tenstorrent.

QUALCOMM Incorporated (NASDAQ:QCOM) is a firm that develops and markets core technologies and products for mobile devices and other wireless products. It functions in Qualcomm CDMA Technologies, Qualcomm Technology Licensing, and Qualcomm Strategic Initiatives divisions.

While we acknowledge the risk and potential of QCOM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than QCOM and that has 10,000% upside potential, check out our report about the cheapest AI stock.

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