Qualcomm AI News, ChatGPT Data Supports These Four Holdings
Our AI thesis is being reinforced by a range of developments, adding supports for these holdings.
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There have been some reports that AlphaWave AWEVF, a U.K.-based semiconductor intellectual property (IP) company, is being pursued by suitors after being approached by Arm Holdings ARM and others.
One of the other companies has been confirmed, and it is our own Qualcomm QCOM. The logic is that the company is interested in AlphaWave’s offerings to improve its AI competitive position against the likes of Broadcom AVGO and others. While Arm has decided not to pursue AlphaWave, Qualcomm has confirmed it is evaluating an offer and has until April 29 to make one or walk away.
As it confirmed this, Qualcomm also announced the acquisition of Vietnam-based MovianAI Artificial Intelligence Application and Research JSC from Vingroup to shore up and expand its AI position in smartphones, PCs and software-defined vehicles. Transaction details were not announced, but we see this as part of Qualcomm’s historical nip-and-tuck M&A efforts. Similar to Apple AAPL, Qualcomm is no stranger to these as it looks to expand the scope of its technology offerings.
Looking at both of these news items, it reinforces the growing importance of AI as a part of a chipset solution, and that reaffirms our positions in Nvidia NVDA and Marvell MRVL. It also implies that we are going to see more AI-related announcements across those three end markets, which contributes to our thinking that network capacity will become congested as AI adoption grows.
To that end, other reports indicate the number of paid ChatGPT subscribers surpassed 20 million, up from 15.5 million at the end of 2024. That is a bit more granular than the comment shared by OpenAI as it completed its latest funding round earlier this week — it has more than 500 million people who use ChatGPT every week.
That jives with the signals we’ve shared in recent weeks about the growing adoption of AI across various industries and other institutions. It also supports the Portfolio’s positions in ServiceNow NOW and Elastic ESTC.
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At the time of publication, TheStreet Pro Portfolio was long QCOM, AAPL, NVDA, MRVL, NOW and ESTC.
