Qualcomm acquires Alphawave Semi for $2.4B to boost data center ambitions

Qualcomm has announced plans to acquire data center chip specialist Alphawave Semi for $2.4 billion, marking a significant expansion of its data center ambitions. The acquisition complements Qualcomm’s recent re-entry into the custom CPU market and positions the company to compete more aggressively in AI infrastructure, following its earlier deals with Nvidia and Saudi AI firm Humain.

The big picture: Qualcomm is making a serious push into the data center market after years of focusing on mobile chips, viewing it as the next frontier for diversification similar to its successful expansion into PCs.

What you should know: Alphawave Semi’s high-speed connectivity and compute technologies will integrate with Qualcomm’s existing Oryon CPUs and Hexagon Neural Processing Units.
• The combined portfolio targets the growing demand for high-performance, low-power computing driven by AI inferencing and the transition to custom CPUs in data centers.
• Alphawave’s products serve essential infrastructure needs across data centers, data networking, and data storage.
• The acquisition is expected to close during the first quarter of 2026.

Recent momentum: Qualcomm has been rapidly building its data center capabilities through strategic partnerships and acquisitions.
• Just weeks ago, the company announced it would build custom CPUs that integrate with Nvidia’s solutions.
• Qualcomm also struck a deal with Saudi artificial intelligence firm Humain, backed by Saudi Arabia’s Public Investment Fund, to develop data center and chip infrastructure.
• The company previously acquired silicon startup Nuvia in 2021 for its CPU technology, though that deal led to extended legal battles with Arm over licensing.

What they’re saying: Industry leaders see the acquisition as a natural fit for expanding Qualcomm’s reach in high-growth markets.
• “Under Tony’s leadership Alphawave Semi has developed leading high-speed wired connectivity and compute technologies that are complementary to our power-efficient CPU and NPU cores,” said Cristiano Amon, Qualcomm’s president and CEO.
• “By combining our resources and expertise, we will be well-positioned to expand our product offerings, reach a broader customer base, and enhance our technological capabilities,” said Tony Pialis, Alphawave Semi’s president and CEO.

The reality check: Despite the ambitious plans, Qualcomm faces significant challenges in establishing a meaningful data center presence.
• SemiAnalysis Analyst Sravan Kundojjala noted that “Qualcomm’s DC revenue is near zero” and expects it to remain minimal for the next 2-3 years.
• The company must build a complete software stack, industry ecosystem, and coherent AI strategy combining server CPUs, AI inference, and networking capabilities.
• Alphawave’s close relationship with Arm as a licensee could potentially trigger another licensing pricing battle similar to the Nuvia acquisition.

Historical context: This isn’t Qualcomm’s first attempt at data center dominance—the company launched Centriq processors in 2017 but had to pause those efforts to focus on core business challenges and protect positions in automotive and IoT markets.