Extreme Networks weighs sale following buyer interest, sources say
Shares rose around 17% on November 6 as the networking company, with a market capitalization of about $3 billion, considers a potential sale.
Alphabet takes nearly $548 million stake in Qualcomm
The investment comes as Qualcomm expands its data-center business, with the chipmaker expecting revenue from those chips to reach $15 billion by 2029.
Alphabet acquired a Qualcomm stake valued at nearly $548 million during the third quarter, adding an equity investment to the companies' longstanding technology partnership. The chipmaker is seeking to expand beyond smartphones into processors for AI data centers.
Qualcomm shares gained 3% in premarket trading on November 6. The company has spent the past year seeking customers among cloud service providers for its custom AI processors, as those companies develop their own chips and look for alternatives to Nvidia's costly products.
Qualcomm expects revenue from data-center chips to reach $15 billion by 2029. A September agreement allows Amazon to purchase up to $60 billion in Qualcomm AI data-center chips and related products. Qualcomm also issued warrants allowing Amazon to buy its shares. Microsoft and Meta have placed orders for Qualcomm's data-center processors as well.
The relationship with Google already spans several product categories. Qualcomm processors power Google's premium Googlebook laptops, while its smartphone chips are used in virtually every major handset running Android. In 2024, the companies agreed to develop chips and software aimed at bringing AI into the automotive industry.