The Modular transaction would represent Qualcomm’s second major AI chip acquisition in a short period of time.

The San Diego-based semiconductor manufacturer is also engaged in advanced discussions with AI chip startup Tenstorrent, in a deal reportedly valued between US$8 billion and US$10 billion.

If both transactions are completed, Qualcomm will have spent more than US$14 billion within a matter of weeks to reshape its AI chip portfolio.

Qualcomm (NASDAQ: QCOM) shares closed down 1.84% on Monday. Reports regarding the potential Modular acquisition surfaced after the market close, sending the stock lower in after-hours trading.

Despite Monday’s decline, Qualcomm shares have gained approximately 44.9% over the past year, reflecting investor optimism surrounding the company’s transition toward AI infrastructure.

Qualcomm has already acquired RISC-V startup Ventana Micro Systems and connectivity IP supplier Alphawave Semi, while bringing forward the shipment timeline for its data-center-focused custom ASIC products to calendar year 2026.

Although the proposed US$4 billion Modular acquisition is relatively small compared with a potential Tenstorrent deal, it could serve as a complementary addition to Qualcomm’s broader AI strategy.

However, the specific technologies Modular would contribute—whether in edge AI inference, compiler toolchains, or custom silicon—have not yet been publicly disclosed.

Modular operates a platform that enables developers to deploy AI models across different computing chips without having to rewrite code.

Wall Street’s reaction to Qualcomm’s acquisition strategy has been relatively cautious.

Following reports regarding the potential Tenstorrent transaction, Bernstein commented that it recognized the strategic logic of expanding Qualcomm’s portfolio of low-latency AI inference assets, while also highlighting the execution and integration risks associated with such acquisitions.

On the same day the Modular news emerged, Cantor Fitzgerald raised its price target on Qualcomm from US$150 to US$200, while maintaining a Neutral rating.

The firm also forecast that Qualcomm’s data center business could eventually generate US$3 billion in revenue.

However, Qualcomm’s stock closed well above the new target price, suggesting that much of the expected growth from its data center business may already be reflected in market valuations.

The next major catalyst will be Qualcomm’s Investor Day on June 24, where management is expected to provide a comprehensive update on the company’s AI infrastructure strategy.

Investors will be watching closely to see whether management formally confirms discussions involving Modular and Tenstorrent, as well as any updates to its data center revenue targets.

Market Analysis:

Qualcomm is scheduled to report its third-quarter earnings on August 5, 2026.

The market currently expects earnings per share of US$2.21.

The upcoming earnings report will provide management with its first formal opportunity to discuss any completed acquisitions and their financial implications.

Over the past 90 days, analysts have revised EPS estimates downward 23 times, compared with only one upward revision, indicating that expectations for the quarter remain relatively cautious.

As a result, investors may increasingly look to acquisition announcements as a catalyst for reshaping Qualcomm’s long-term growth narrative.