Qualcomm shares are down on Tuesday before one of the year’s most anticipated investor days in the chip industry. The stock was set to open 5% lower in premarket trading as a broader tech selloff hit the markets, trimming some of its 72% gain from the past three months. A possible acquisition and Wednesday’s investor day could show if the rally will continue. Here’s what investors are focusing on.
According to Bloomberg, Qualcomm is in advanced talks to acquire Modular, an AI developer platform, in a deal worth about $4 billion. Modular’s platform helps developers and companies run AI models efficiently on different types of hardware, which would support Qualcomm’s move into custom data center chips. Qualcomm and Modular did not respond to requests for comment right away.
Wednesday’s investor day is the main short-term focus. Qualcomm is expected to announce a major customer for its custom data center chip and share more details about its next-generation processors. J.P. Morgan predicts the company could set a data center revenue goal of over $3 billion for 2027, rising to $35 billion by 2031. The market has been expecting good news from the event, which has helped drive the stock’s 72% gain over the past three months.
Tuesday’s drop is due to both weakness across the tech sector and the typical moves before a big event with already high expectations.
