Qualcomm Acquires Alphawave for $2.4B to Expand AI Data Center Footprint

Qualcomm Incorporated (NASDAQ:QCOM) is one of the 8 cheap beginner stocks to buy right now. On June 9, Qualcomm Incorporated (NASDAQ:QCOM), which is growing into the rapidly expanding AI data center industry, agreed to buy Alphawave for approximately $2.4 billion.

While Apple ranks as one of Qualcomm’s key customers, the iPhone manufacturer’s increasing uses of in-house processors has led to the semiconductor company to expand its focus on serving industries like data centers and personal computers.

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The same day, Qualcomm Incorporated (NASDAQ:QCOM) also made two other all-share proposals for Alphawave. However, Alphawave intends to unanimously recommend the offer to its investors, believing it to be reasonable and fair. Jefferies analysts stated that given Alphawave’s exit from its Chinese joint venture, WiseWave, they do not anticipate any significant regulatory barriers to the sale. The deal is expected to close in Q1, 2026 depending on regulatory approvals.

In a statement regarding this acquisition, Cristiano Amon, president and CEO of Qualcomm, said the following:

“Qualcomm’s advanced custom processors are a natural fit for data center workloads. The combined teams share the goal of building advanced technology solutions and enabling next-level connected computing performance across a wide array of high growth areas, including data center infrastructure.”

QUALCOMM Incorporated (NASDAQ:QCOM) is a well-known American manufacturer of semiconductors and telecom equipment. The company supplies chips to major companies in a number of high-growth industries, including smartphones and autonomous vehicles.

While we acknowledge the potential of QCOM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

Read More: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds

Disclosure: None.