Chip Giants Arm, Qualcomm Target Alphawave To Capture AI Success Like Broadcom

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British chip designer Arm Holdings ARM explored snapping up semiconductor intellectual property supplier Alphawave.

That is, until discussions collapsed.

Qualcomm Inc QCOM, an Arm rival, also considered acquiring Alphawave, according to Reuters. Both companies are vying for serializer-deserializer technology. This type of tech enabled companies like Broadcom Inc AVGO to win AI chip customers like Alphabet Inc’s GOOG GOOGL Google and OpenAI.

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The technology gained traction by enabling chatbots and other applications to operate smoothly by simultaneously stringing thousands of chips together.

Arm’s chips have gained traction among cloud computing companies as the electricity of AI data centers has surged over the years. Arm expects its data center central processing unit market share to reach 50% by the end of 2025, up from around 15% in 2024.

Both Arm and Qualcomm supply companies with data center CPUs.

Reportedly, Arm planned to boost prices by up to 300% and has discussed manufacturing its chips. It aims to increase annual smartphone revenue by ~$1 billion over the next ten years.

Arm, majority owned by Japanese conglomerate SoftBank Group, recorded over 90% market share within the mobile applications market. According to Statista, it boasted a 65% share of the Internet of Things and embedded computing markets globally in 2022.

Price Action: ARM stock is down 0.13% at $106.84 at last check Wednesday.

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Image: Shutterstock

Got Questions? Ask
Which semiconductor companies could benefit from Arm's strategy?
How will Qualcomm's plans impact its market position?
Are there investment opportunities in AI chip technology?
Which data center providers might favor Arm's upcoming products?
How might Broadcom respond to Arm's pricing strategy?
Will SoftBank leverage its loan for strategic acquisitions?
Which cloud computing firms are most affected by CPU market shifts?
How will mobile app developers react to Arm's price hikes?
What risks do investors face with Arm's aggressive pricing?
Are there emerging markets for IoT chips to explore?
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