Latest news with #CristianoAmon
Miami Herald
18-06-2025
- Business
- Miami Herald
Analysts reset Qualcomm stock price target, send warning
Keeping a business afloat is hard. According to the U.S. Bureau of Labor Statistics, 50% of small private businesses typically fail within five years. This five-year span seems like the breaking point. If your company is still in business after five years, it means you've likely overcome many setbacks and made many tough decisions. There's plenty that can derail even the best businesses. Suppliers may go bankrupt, fail to meet deadlines, or produce shoddy items. Marketing plans may go awry. Workers may defect to rivals. Even your best customers may eventually sour on your solutions, forcing you to pivot your business entirely. Related: Adobe launches genius new mobile app for content creators One company that seems to have been quite unlucky in choosing its business partners is Qualcomm. Apple is one of its biggest customers, and it is slowly but steadily ditching Qualcomm's modems in favor of its own, creating a crisis for the technology company and forcing it to rethink its business. Qualcomm was founded in 1985, and for a business to be turning 40 is an incredible achievement. The company has two different branches of business. One is Qualcomm CDMA Technologies (QCT) and the other is Qualcomm Technology Licensing (QTL). QCT revenue streams are handsets, automotive, and Internet of Things, while QTL controls the patent licensing business. According to Bloomberg and the Bank of America Global Research estimates, Apple's contribution to QCT's handset division was 15% in 2024. On June 9th, Qualcomm (QCOM) announced that it plans to acquire Alphawave Semi, a producer of high-speed wired connectivity, chiplets, and custom silicon. Artificial intelligence training and inference require highly parallel, memory and bandwidth-intensive computations. Accelerators are built on GPUs or custom chiplets, and need better, more efficient interconnections and AlphaWave's technology enables that. "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, president and CEO of Qualcomm Incorporated. Related: Analysts revamp forecast for Nvidia-backed AI stock Qualcomm's pivot to the data center markets may prove a good plan to recoup the lost revenue due to Apple's increasing reliance on its own modems. This acquisition of Alphawave Semi is expected to be completed during the first calendar quarter of 2026 and isn't final. More Tech Stocks: Amazon tries to make AI great again (or maybe for the first time)Veteran portfolio manager raises eyebrows with latest Meta Platforms moveGoogle plans major AI shift after Meta's surprising $14 billion move According to Gartner, semiconductor revenue in data centers almost doubled in 2024 to reach $112 billion, and the firm expects global semiconductor revenue to total $705 billion in 2025. Qualcomm revenue in Q2 of fiscal year 2025 reached $10.9 billion, a 17% increase year-over-year. Majority of the revenue came from QCT part of the company, which had revenue of $9.5 billion. Handset division revenue was $6.9 billion, automotive revenue $959 million and $1.6 billion came from IoT. Bank of America analyst Tal Liani and his team recently updated their opinion on Qualcomm shares. Analysts noted that the Internet of Things and automotive have significant growth potential and were up 27% and 59% year over year in the most recent quarter. However, they warned that smartphones, representing 73% of Qualcomm CDMA revenues, have peaked. They forecast that Apple's contribution will drop from 15% in 2024 to 6% of total handset revenues by fiscal year 2027 and drop to zero beyond 2027. The analysts believe there are only limited near-term catalysts for the stock and lowered their estimates and price objectives to reflect their updated growth outlook. They set a Qualcomm stock price target of $200, down from $245, equal to 15 times their calendar 2026 earnings estimates. Previously, their target price-to-earnings (P/E) ratio was 17. Qualcomm's forward P/E ratio is currently 13. Related: Apple WWDC underwhelms fans in a crucial upgrade While they reduced their target, they still think the upside is enough to justify maintaining their buy rating on the stock. However, they did highlight three risks that could limit Qualcomm's stock in the near term: The handset market is mature and without any visible growth catalyst. They expect recent smartphone growth to reverse, as the impact of product launches and channel fill in China erodes, and share gains at Samsung will subside. Apple will start using its own modem for non-Pro phones. Analysts concluded that "AI PC and data center connectivity could contribute to growth but may take time [to] carry enough weight to offset the smartphone trends." Related: Amazon's latest big bet may flop The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
16-06-2025
- Business
- Yahoo
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. Kārlis Dambrāns/Flickr 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: and Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-06-2025
- Business
- Yahoo
Qualcomm Expands into AI Data Centers with Alphawave IP Acquisition
Qualcomm Incorporated (NASDAQ:QCOM) is one of the 8 Best Inexpensive Stocks to Buy Right Now. On June 9, Qualcomm announced its agreement to acquire Alphawave IP Group for an implied enterprise value of ~$2.4 billion. The acquisition will be carried out through Qualcomm's indirect wholly-owned subsidiary, called Aqua Acquisition Sub LLC. This move aims to expand Qualcomm's presence in the booming AI data center market and reduce its reliance on smartphone chips. Cristiano Amon, President and CEO of Qualcomm, stated that Alphawave's high-speed wired connectivity and compute technologies are complementary to Qualcomm's power-efficient CPU and NPU cores, which include their next-gen custom Qualcomm Oryon CPU and Qualcomm Hexagon NPU processors. This acquisition is expected to provide key assets for Qualcomm's expansion into data centers, where growth in AI inferencing is driving demand for high-performance, low-power computing. An aerial view of a bustling semiconductor production zone showcasing the company's integrated circuits. Alphawave shareholders will be offered 183 pence per share in cash. This represents a premium of ~96% to Alphawave's closing price on March 31, which was the day immediately preceding Qualcomm's disclosure of its interest. The deal is not anticipated to face material regulatory obstacles, especially after Alphawave exited its Chinese joint venture, WiseWave, on June 9. The acquisition is expected to be completed during Q1 2026, pending certain conditions. Qualcomm Incorporated (NASDAQ:QCOM) develops and commercializes foundational technologies for the wireless industry worldwide. It operates through 3 segments: Qualcomm CDMA Technologies/QCT, Qualcomm Technology Licensing/QTL, and Qualcomm Strategic Initiatives/QSI. Alphawave IP Group is a Canadian-founded semiconductor company domiciled in the UK. The company's expertise includes 'serdes' technology, which enhances chip data-processing speeds for AI development. 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 . READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
15-06-2025
- Business
- Yahoo
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. Kārlis Dambrāns/Flickr 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: and Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-06-2025
- Business
- Yahoo
Qualcomm Expands into AI Data Centers with Alphawave IP Acquisition
Qualcomm Incorporated (NASDAQ:QCOM) is one of the 8 Best Inexpensive Stocks to Buy Right Now. On June 9, Qualcomm announced its agreement to acquire Alphawave IP Group for an implied enterprise value of ~$2.4 billion. The acquisition will be carried out through Qualcomm's indirect wholly-owned subsidiary, called Aqua Acquisition Sub LLC. This move aims to expand Qualcomm's presence in the booming AI data center market and reduce its reliance on smartphone chips. Cristiano Amon, President and CEO of Qualcomm, stated that Alphawave's high-speed wired connectivity and compute technologies are complementary to Qualcomm's power-efficient CPU and NPU cores, which include their next-gen custom Qualcomm Oryon CPU and Qualcomm Hexagon NPU processors. This acquisition is expected to provide key assets for Qualcomm's expansion into data centers, where growth in AI inferencing is driving demand for high-performance, low-power computing. An aerial view of a bustling semiconductor production zone showcasing the company's integrated circuits. Alphawave shareholders will be offered 183 pence per share in cash. This represents a premium of ~96% to Alphawave's closing price on March 31, which was the day immediately preceding Qualcomm's disclosure of its interest. The deal is not anticipated to face material regulatory obstacles, especially after Alphawave exited its Chinese joint venture, WiseWave, on June 9. The acquisition is expected to be completed during Q1 2026, pending certain conditions. Qualcomm Incorporated (NASDAQ:QCOM) develops and commercializes foundational technologies for the wireless industry worldwide. It operates through 3 segments: Qualcomm CDMA Technologies/QCT, Qualcomm Technology Licensing/QTL, and Qualcomm Strategic Initiatives/QSI. Alphawave IP Group is a Canadian-founded semiconductor company domiciled in the UK. The company's expertise includes 'serdes' technology, which enhances chip data-processing speeds for AI development. 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 . READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey.
