Alphabet Reveals $548m Qualcomm Stake

Alphabet, the parent company of Google, has disclosed a $548 million stake in chipmaker Qualcomm, comprising nearly 3 million shares, as of September 30. This disclosure was made through a regulatory filing that lists Alphabet's holdings in other companies.

The stake in Qualcomm is worth $547.9 million, and the news led to a rise of more than 3% in Qualcomm's shares in premarket trading. The filing does not provide information on when Alphabet acquired the shares or the reasons behind the investment.

In addition to the Qualcomm stake, Alphabet also increased its holding in SpaceX to about 555 million shares, up from 551.2 million previously. Alphabet first invested in SpaceX in 2015, when it joined Fidelity in a $1 billion funding round.

The disclosure of the Qualcomm stake comes at a mixed time for the chipmaker. Qualcomm recently missed Wall Street expectations for quarterly smartphone chip sales due to weak demand. However, the company forecast better-than-expected revenue for its data centre business, where it is trying to grow beyond phones.

## Why it matters The investment in Qualcomm is significant, given the existing partnership between the two companies. Qualcomm makes the Snapdragon chips that power many Android phones, and the companies have also collaborated on AI agents for cars. Furthermore, Google designs its own AI chips, called TPUs, for its data centres, which is the same market that Qualcomm is now trying to enter. The disclosure covers holdings as of September 30, the end of the third quarter, and is a requirement for large US investors.

The stake in Qualcomm and the increased holding in SpaceX demonstrate Alphabet's continued interest in investing in companies that align with its strategic goals. As the tech industry continues to evolve, such investments can have significant implications for the future of innovation and competition.