Qualcomm (QCOM, Financial) has confirmed it is considering a potential acquisition offer for UK-listed semiconductor company Alphawave IP Group. Although no formal offer or terms have been decided, Qualcomm is required to declare its intentions by the end of April. Alphawave, which went public in 2021 with an initial price of 410 pence per share, has seen its stock price consistently fall below this level. Following unsuccessful negotiations with Arm (ARM), Alphawave is exploring a sale.
The acquisition news led to a 45% surge in Alphawave's stock price to 135.70 pence, raising its market valuation to approximately £1.03 billion ($1.3 billion). The stock had initially increased by up to 53% but has declined about 22% over the past year. Alphawave specializes in high-speed semiconductors and connectivity technology, crucial for data centers and AI applications, with growing demand driven by products like OpenAI's ChatGPT.
In its latest performance report, Alphawave revealed a 44% year-over-year increase in fourth-quarter orders, reaching a record $185.7 million. CEO Tony Pialis attributed this growth to demand from North American AI clients. The company has also launched its first "silicon product" to enhance high-speed connectivity in large data centers.
