Stocks/Earnings

Broadcom, Qualcomm Shares Rise on M&A Chatter

Bloomberg says Broadcom wants to buy chipmaking rival 11/03/2017 2:33 PM Eastern

Shares in Broadcom and Qualcomm rose Friday following a report by Bloomberg that Broadcom is exploring a deal to acquire the fellow chip-making giant.

The report comes just a day after Broadcom announced it was moving its headquarters back to the U.S. (from Singapore) that was paired with praise by and a photo op with President Donald Trump.

RELATED: Broadcom Moving Back Stateside

If such a deal were to come to fruition, it would be the largest takeover of a silicon maker, according to Bloomberg, which warned that there’s no guarantee that a deal will come out of the talks.

But the report caused Broadcom shares to rise 4%, and Qualcomm shares to soar more than 15% in mid-day trading Friday.

Bloomberg also noted that the M&A talks also arrive as Qualcomm tries to close its $47 billion acquisition of NXP Semiconductors. Elsewhere, Qualcomm has lobbed a lawsuit at Apple, alleging that the smartphone maker had shared proprietary code with Intel Corp. The Wall Street Journal reported that Apple was also looking to drop Qualcomm and leaning on Intel for modem chips in iPhones and iPads.

Want to read more stories like this?
Get our Free Newsletter Here!