Qualcomm Granted More Time for Alphawave Bid Amid Strong Earnings and AI Chip Interest

Alphawave IP Group (LON:AWE) announced Monday that the U.K. Takeover Panel has extended Qualcomm’s (NASDAQ:QCOM) deadline to submit a formal acquisition offer to May 27. The extension follows a previously revised deadline of May 12, originally pushed from April 29 under U.K. takeover regulations due to ongoing talks between the two companies.

Alphawave has drawn acquisition interest from major tech players like Qualcomm and Arm, thanks to its expertise in "serdes" technology, a critical component in advanced AI chip design. This strategic importance has made Alphawave a hot target in the semiconductor space.

Qualcomm recently beat Wall Street expectations for its fiscal second quarter, reporting adjusted earnings per share of $2.85 versus the $2.82 forecast, and revenue of $10.84 billion, ahead of the projected $10.66 billion. However, for the upcoming quarter, Qualcomm guided for adjusted earnings of $2.70 per share and revenue of $10.3 billion—marginally missing analyst revenue forecasts.

The softer outlook reflects continued weak demand for smartphone chips, with Apple, Qualcomm's biggest customer, shifting to in-house modem development. This move is expected to gradually reduce Apple's reliance on Qualcomm’s components.

While Qualcomm’s chips have not been directly impacted by U.S. tariffs, concerns persist over the broader effects of U.S.-China trade tensions on tech demand. CFO Akash Palkhiwala noted during the company’s earnings call that third-quarter projections were based on existing tariff conditions, which could quickly change with geopolitical shifts.

In a recent filing, Qualcomm acknowledged uncertainty around the impact of ongoing trade policies, signaling potential volatility in its operations amid a challenging global economic environment.