Qualcomm Incorporated appears to be nearing an agreement to acquire AI chip developer Modular Inc in a transaction that would value the startup at roughly $4 billion, people familiar with the matter said. While the companies have not issued public statements and a definitive agreement has not been announced, sources indicated that an announcement could occur in the near term.
If completed, the Modular acquisition would be the second significant AI chip deal involving Qualcomm within a short span. Separately, the company has been reported to be in advanced discussions to acquire Tenstorrent in a transaction estimated between $8 billion and $10 billion. Taken together, those two potential purchases would involve Qualcomm committing in excess of $14 billion to reconfigure its AI silicon portfolio in only a few weeks.
Market trading reflected the news cycle. Qualcomm shares ended Monday's session down 1.84% at $221.96, having retreated from an intraday peak of $233.44. The report about the Modular talks surfaced after the market close, and the stock edged down a further 0.05% to $221.78 in after-hours trade, based on available market data. Despite the pullback, the shares have climbed about 44.9% over the last year, a performance that market participants have associated with the company’s strategic shift toward AI infrastructure.
Strategic context
The reported acquisitions fit within a wider strategy under CEO Cristiano Amon to expand Qualcomm's addressable market beyond its historical mobile processor business. The company has earlier acquired RISC-V specialist Ventana Micro Systems and connectivity IP provider Alphawave Semi. Management has also said that shipments of custom ASIC data-center chips have been moved forward into calendar year 2026.
At an estimated $4 billion, Modular would be a smaller complement to the larger Tenstorrent pursuit. Public information about Modular's technical contributions is limited: the company operates a platform that enables developers to deploy AI models across different chips without rewriting code. The precise mix of technology Modular would bring to Qualcomm - whether focused on edge inference, compiler tooling, custom silicon, or other capabilities - has not been disclosed.
Wall Street reaction and analyst commentary
Brokerage and equity research responses to Qualcomm's recent M&A activity have been measured. Bernstein analyst Rasgon acknowledged the strategic rationale for adding low-latency AI inference assets but cautioned about integration risks. Rasgon wrote that a $10 billion price tag for a startup could be expensive, and questioned how such acquisitions would interact with the company's existing portfolio - whether they would be additive or act as a hedge. Bernstein indicated it was making no changes to its financial models and maintained a Market-Perform rating.
On the same day the Modular reports emerged, Cantor Fitzgerald raised its price target on Qualcomm to $200 from $150 while keeping a Neutral rating. The firm projected $3 billion in data-center revenues as part of its outlook and outlined a bull case in which data-center sales hitting $30 billion could lift the stock to $300. Qualcomm's most recent closing price was above Cantor Fitzgerald's revised target, suggesting the market may already be pricing in a more aggressive data-center ramp than the firm's base case assumes.
Deal details, disclosures and unknowns
Neither Qualcomm nor Modular Inc has publicly commented on the reported discussions. Important components of any transaction - including deal structure and whether consideration would be paid in cash, equity, or a mix - remain undisclosed. Potential regulatory review and its implications have also not been detailed.
Modular's most recent valuation prior to the reported talks was recorded at $1.6 million in a September 2025 funding round, a figure that financial observers have noted in reviewing the company’s capital history. Beyond valuation, the public record does not contain additional specifics about Modular's revenue, customer base, or technical roadmap.
Upcoming catalysts
The next scheduled moment for corporate clarity is Qualcomm's Investor Day on June 24, where management is widely expected to present the company's AI infrastructure strategy. Analysts and investors will look for any on-record confirmation of the Modular and Tenstorrent discussions and for updated data-center revenue trajectories.
Further out, Qualcomm is slated to report its third fiscal quarter results on August 5, 2026. Consensus analyst estimates point to earnings per share of $2.21 for the quarter. That report will be the first formal opportunity for management to discuss any completed M&A transactions and to outline their expected financial impacts. Notably, there have been 23 downward EPS revisions against one upward revision over the past 90 days, indicating a cautious near-term earnings backdrop ahead of the results.
Summary takeaway
Qualcomm appears poised to add Modular to its roster of AI-related acquisitions, potentially valuing the startup near $4 billion. The deal would follow ongoing discussions for Tenstorrent and sit alongside prior purchases such as Ventana Micro Systems and Alphawave Semi. Key details remain private, and investors will be watching the company's Investor Day and the August earnings report for confirmation and further guidance.