Qualcomm Makes Power Play: Snaps Up Autotalks in Strategic Chip Sector Move
Another day, another tech giant swallowing innovation whole—this time it's Qualcomm writing the check. The wireless chip behemoth just locked down Autotalks, a key player in vehicle-to-everything (V2X) communication tech. No price tag disclosed (classic M&A opacity), but you can bet those Autotalks engineers just became very popular at Qualcomm happy hours.
Why this matters: With automakers scrambling to future-proof connected cars, owning Autotalks' crash-prevention tech gives Qualcomm a bulletproof vest in the coming 5G auto wars. Meanwhile, Wall Street analysts are too busy adjusting their spreadsheet macros to notice if this actually creates value.
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Qualcomm said that the Autotalks team will help it offer more reliable safety solutions, especially as vehicle technology becomes more complex. Interestingly, the company has been investing in V2X since 2017 due to its potential to reduce accidents. With Autotalks now on board, Qualcomm plans to speed up the rollout of connected and automated driving systems around the world and add to its Snapdragon Digital Chassis lineup, which is already being used by several automakers.
It is also worth noting that Autotalks makes computer chips specifically for V2X and was the first to develop a V2X chipset. In addition, its products support all major global communication standards, including DSRC and C-V2X (which covers LTE and 5G technology). These products are designed to work in different types of vehicles and across different regions. Now that the company is part of Qualcomm’s platform, Autotalks’ current projects will continue to receive support and focus on improving road safety for all users.
Is Qualcomm a Buy, Sell, or Hold?
Overall, analysts have a Moderate Buy consensus rating on QCOM stock based on eight Buys, eight Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average QCOM price target of $177.75 per share implies 18.6% upside potential.
