Qualcomm’s strategic shift to AI, including a $4 billion acquisition, drives shares up 66% in three months amid data center expansion.
Qualcomm has accelerated its pivot to artificial intelligence, acquiring AI software firm Modular in a $4 billion all-stock deal. The move strengthens its position in the AI data center market, targeting Nvidia’s dominance in inference processing.
Shares of Qualcomm have climbed 66% over the past three months, outpacing broader tech sector gains. The acquisition adds Modular’s cross-platform AI software and a new programming language, positioning Qualcomm to compete with Nvidia’s CUDA ecosystem.
Analysts note Qualcomm’s focus on edge computing and custom processors could exploit gaps in Nvidia’s GPU-heavy approach. The stock remains attractively valued relative to peers, despite recent gains.