QUALCOMM Inc ( QCOM ) shares are trading higher Monday after the company announced it reached an agreement to acquire Alphawave Semi for $2.4 billion.

What To Know: Qualcomm ( QCOM ) will acquire Alphawave at an implied enterprise value of approximately $2.4 billion. The company said that Alphawave's assets will help accelerate its push into the data center market, where demand for low-power, high-performance chips is rising alongside growth in AI workloads.

Qualcomm ( QCOM ) noted that the acquisition supports its strategy to expand its custom processor business and capitalize on the transition to AI-driven compute infrastructure.

The $2.4 billion deal will be completed through Aqua Acquisition Sub LLC, a subsidiary of Qualcomm ( QCOM ), and is expected to close in the first quarter of 2026.

“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,” said Cristiano Amon, president and CEO of Qualcomm ( QCOM ).

The acquisition remains subject to customary closing conditions, including regulatory approvals and shareholder and court sign-offs in the U.K.

QCOM Price Action: At the time of writing, Qualcomm ( QCOM ) shares were up 4.32% at $155.70, according to data from Benzinga Pro.

Read Next:

$100 Invested In This Stock 5 Years Ago Would Be Worth This Much Today

Image: Shutterstock.