Qualcomm: What Monday's Jump Tells Us About the Stock's Prospects

Core Viewpoint - Qualcomm's recent stock performance indicates a potential turnaround, driven by a significant acquisition and a shift in focus towards AI infrastructure and data centers [2][10]. Group 1: Stock Performance - Qualcomm shares rose 4%, marking one of the best single-day performances in recent weeks, significantly outperforming the S&P 500 [1][2]. - The stock closed at its highest level since March, suggesting a possible shift in momentum after a prolonged period of stagnation [2][10]. - Analysts project a 12-month price target of $189.88, indicating a potential upside of 21.07% from current levels [7]. Group 2: Acquisition Details - Qualcomm announced a $2.4 billion acquisition of UK-based Alphawave IP Group, which specializes in high-speed connectivity for AI data centers [3][4]. - The acquisition is expected to close in the first quarter of next year, with minimal regulatory resistance anticipated [5]. - CEO Cristiano Amon emphasized that Alphawave's technology complements Qualcomm's existing capabilities, reinforcing its ambitions in AI infrastructure [6]. Group 3: Market Positioning - The acquisition signals Qualcomm's strategic pivot away from smartphones towards infrastructure and server-side growth, aiming to diversify its business [4][10]. - Analysts have noted that Qualcomm's stock has struggled to keep pace with competitors like NVIDIA and Broadcom, highlighting the need for a fresh narrative to attract investor interest [7][9]. - The recent stock movement above the $155 resistance level could pave the way for further gains, potentially reaching $175 [8].