Qualcomm (QCOM) Executes $2.4Bn AI Data Center Market Counteroffensive

TipRanks

Wed, Jun 18, 2025, 9:25 AM 5 min read

Qualcomm’s (QCOM) $2.4 billion acquisition of Alphawave highlights the company’s renewed push into the rapidly expanding AI data center market. This move follows Qualcomm’s earlier efforts in the data center CPU space, which were ultimately scaled back due to cost-cutting measures, legal challenges, and intense competition.

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It also marks Qualcomm’s second significant acquisition in this arena, following its purchase of Nuvia, as the company seeks to reestablish a foothold in high-performance computing. With a growing range of revenue streams beyond its traditional mobile business, Qualcomm’s strategic pivot into AI and infrastructure markets strengthens the long-term investment case, despite the competitive landscape.

Investment in AI infrastructure is accelerating at an unprecedented pace. Microsoft (MSFT) has announced plans to spend $80 billion on AI data centers in 2025, while Amazon (AMZN) is committing over $100 billion to similar initiatives. According to McKinsey & Company, global data center investments could reach $6.7 trillion by 2030 to meet the soaring demand for compute power.

This surge is driven not only by the widespread adoption of generative AI and enterprise applications but also by growing geopolitical urgency. Many now view semiconductors as strategic assets—comparable to nuclear technology—prompting nations to make significant investments to secure technological leadership.

One example is the Stargate Project, backed by President Trump, which aims to channel $500 billion into AI infrastructure over the next few years. In this context, it’s no surprise that major tech companies are aggressively positioning themselves to capitalize on what may be one of the most transformative growth opportunities of the decade.

Qualcomm, best known for its Snapdragon processors that power a majority of smartphones, has been steadily expanding its footprint in AI infrastructure. Its 2021 acquisition of Nuvia marked a strategic re-entry into the high-performance computing space, laying the groundwork for broader ambitions.

In 2025 alone, Qualcomm has made a series of targeted acquisitions, including Autotalks (focused on vehicle-to-everything communication), Edge Impulse (specializing in edge AI development), and most recently, Alphawave Semi.