Will Marvell Technology and Broadcom respond by acquiring key AI interconnect IP to counter Qualcomm’s Alphawave move?

Qualcomm Incorporated’s USD 2.4 billion acquisition of Alphawave IP Group plc (Alphawave Semi) has reshaped the competitive dynamics in AI data centre interconnects, challenging Marvell Technology and Broadcom Limited to counter‑innovate or consolidate. Qualcomm’s move strengthened its position in SerDes, chiplet packaging, and wired connectivity IP. With chip‑scale modular architectures gaining strategic importance, investors are now asking whether Marvell or Broadcom will act to protect market share in next‑generation AI compute markets.

Historically, Marvell has relied on its acquisition of Inphi in 2021 to establish a position in high‑speed optics while Broadcom has built its dominance on enterprise Ethernet and custom ASIC platforms. Both firms now face increased pressure to deepen their wired-interconnect IP portfolios in response to Qualcomm’s Alphawave integration. Industry observers suggest that the coming months could see notable strategic shifts as both firms respond.

Could Marvell Technology pursue acquisition of connectivity IP firms to defend its position in AI data centre interconnect?

Marvell Technology’s current strength lies in its substantial investments in optical interconnect and chiplet integration, built on the foundation laid by the USD 10 billion Inphi acquisition in 2021.

The American semiconductor infrastructure developer reported a net loss of USD 885 million for fiscal 2025, largely reflecting elevated R&D and acquisition amortisation costs. However, Marvell forecasts that AI-related revenue will exceed USD 1.5 billion this year, amounting to roughly 30 percent of total revenue. That mix now offers a compelling backdrop for further investment or inbound M&A in adjacent high‑speed IP capabilities.

Investors and analysts are focused on whether Marvell will pursue smaller IP vendors to accelerate chipset skills and optical integration more rapidly. Potential targets include CXL interposer specialists or SerDes IP vendors that complement Marvell’s existing silicon photonics roadmap.

Market sentiment is building as institutional holdings in Marvell have increased by more than 26 percent year‑to‑date, signalling that asset managers anticipate momentum in the firm’s strategic pivot. If licensing partnerships with hyperscalers emerge, they could serve as public confirmation of more cohesive downstream strategy aligned with modular AI infrastructure trends.

Could Broadcom Limited respond with strategic IP acquisitions to fortify its networking chip leadership after Qualcomm’s chiplet push?

Broadcom Limited, a major force in enterprise networking silicon, has produced industry‑leading performance through its Tomahawk 6 Ethernet switch chips, supporting 102.4 Tbps of network capacity with chiplet‑in‑package integration built on advanced process nodes such as 3 nm.

The American enterprise networking specialist reported approximately USD 4.4 billion in AI-related revenue last quarter, representing a 46 percent year‑over‑year increase in what remains a small but rapidly growing segment. Market estimates suggest that Broadcom’s AI chip revenue could approach USD 36 billion by 2027—a projection supported by broad-based hyperscaler demand.

On the heels of Qualcomm’s Alphawave bid, Broadcom may be compelled to respond to emerging competitive threats. Industry commentators expect the enterprise networking powerhouse to consider acquisitions of specialised IP vendors such as Rambus, creator of high‑bandwidth memory controllers, or Astera Labs, which supplies PCIe and CXL link and interposer technology. Analysts view such acquisitions as an efficient means to bundle IP with Broadcom’s already dominant networking ASICs and card platforms, in turn neutralising potential entry by newer firms leveraging chiplet architectures.

What types of hyperscaler partnership announcements would indicate Marvell or Broadcom are entering the AI interconnect arms race?

Hyperscaler commitment is a critical proxy for momentum in the AI interconnect domain. Marvell has already signed contracts with major cloud service providers, including Amazon Web Services and a range of global clients, for silicon‑photonic and high‑speed interface IP. That provides early visibility on the company’s ability to build ecosystems that support hyperscale data centre designs. Broadcom, while less transparent in its disclosures, supports networking systems for Google, Meta, Microsoft and other platforms—making any future announcements of co-designed platforms for PCIe Gen 6, CXL, or chiplet interposers of notable significance.

Industry analysts highlight that announcements around collaborative optical transceiver roadmaps, die‑to‑die packaging pilots, or plug‑and‑play HPC clusters featuring Marvell or Broadcom IP would be strong indicators of escalating competition. Any formal co-development memorandum of understanding, hyperscale evaluation board deployment, or tier‑one OEM support would signal to investors that Marvell and Broadcom are matching Qualcomm’s Alphawave-fuelled expansion into advanced AI infrastructure.

Which smaller IP vendors are most likely to become acquisition targets for Marvell or Broadcom in reaction to Qualcomm’s Alphawave acquisition?

With Alphawave Semi now formally aligned with Qualcomm’s roadmap, industry attention is rapidly turning to a second tier of semiconductor IP vendors that offer specialized capabilities in high-speed interconnect, chiplet integration, and modular packaging—each of which are vital to the AI data center architectures of the next decade. These smaller but strategically significant firms may offer Marvell Technology or Broadcom Limited an opportunity to respond competitively to Qualcomm’s aggressive vertical integration strategy.

Among the most frequently mentioned potential targets is Credo Semiconductor, a California-based connectivity IP provider known for its high-performance SerDes (serializer-deserializer) technology. Credo’s IP is widely used in chiplet and patch panel applications, supporting die-to-die communication and high-speed I/O needed in AI accelerators. Its technology supports both copper and optical links across PCIe and Ethernet-based infrastructures, making it especially attractive to acquirers aiming to scale interconnect performance without incurring substantial thermal or power penalties. Analysts suggest Credo’s existing design wins with Tier-1 cloud service providers make it a viable bolt-on target for Broadcom, which already dominates switch silicon but has room to expand in chiplet interconnects.

Astera Labs, based in Santa Clara, is another high-profile player in the IP spotlight. The company is best known for its PCIe, CXL (Compute Express Link), and memory interconnect solutions tailored for disaggregated server architectures. Astera’s Leo and Aries platforms have gained significant traction among hyperscalers for enabling dynamic connectivity between GPUs, CPUs, and accelerators. The firm’s deep integration with TSMC’s advanced packaging ecosystem and its customer base that includes Amazon Web Services, Microsoft Azure, and other top-tier cloud platforms adds to its strategic value. As modular server designs become more central to AI infrastructure scaling, acquiring Astera could provide Marvell or Broadcom with a shortcut to deeper hyperscaler penetration and ecosystem lock-in.

Meanwhile, Achronix Semiconductor Corporation offers a differentiated value proposition. Unlike traditional IP vendors, Achronix combines embedded FPGA (eFPGA) IP with full-chip development capabilities, allowing for adaptive compute fabrics that can be integrated directly into AI and networking SoCs. This programmable logic approach supports edge inference, reconfigurable data paths, and workload-specific optimizations—all critical features in environments where latency and energy efficiency are tightly coupled to architecture design. Achronix’s Speedcore eFPGA IP is already licensed by multiple AI hardware startups, and its Speedchip products combine hardwired logic with eFPGA flexibility in a way that complements chiplet-centric strategies. For Marvell, which has been emphasizing adaptable data infrastructure, or Broadcom, which is seeking greater control over custom logic, Achronix offers strategic depth.

Rambus Inc., the longest-standing name in the group, presents a somewhat different acquisition thesis. The firm specializes in memory interface IP, security IP cores, and high-bandwidth memory (HBM) controller technology. Rambus has been a consistent player in enabling DRAM and HBM integration in data center-class hardware. Its IP is found in both GPU-centric AI platforms and high-performance networking ASICs. As AMD, Intel, and NVIDIA continue to increase reliance on 3D memory stacking and silicon interposers, Rambus’ capabilities have become increasingly central to achieving performance-per-watt targets. Given Broadcom’s limited in-house capabilities around HBM interface design, acquiring Rambus would immediately give it a competitive edge in memory-intensive workloads that dominate AI training clusters.

Each of these IP-rich firms is valued within a range of approximately USD 200 million to USD 1 billion, making them accessible M&A targets for either Broadcom or Marvell. Both acquirers have the financial flexibility to pursue such transactions, especially in light of their strong free cash flow profiles and history of accretive bolt-on acquisitions. Unlike mega-mergers, these smaller strategic buys can be executed quickly, with minimal integration risk, and can deliver immediate synergies through ecosystem consolidation.

Industry analysts suggest that investors watch for early signals such as newly inked IP licensing deals with hyperscalers, development kit announcements, or sudden spikes in developer interest and SDK adoption. These often precede acquisition announcements by months and are indicative of increasing traction among systems architects. For instance, should any of these IP vendors announce co-designed interconnect platforms with Amazon, Google, or Meta, it could significantly increase their strategic valuation.

Moreover, as hyperscalers begin to design more of their own silicon, demand for flexible, modular IP will only rise. This makes the prospect of vertical integration not just a competitive strategy—but potentially a defensive necessity for legacy chipmakers who risk being disintermediated. Marvell and Broadcom, both of which have historically succeeded through tightly aligned customer co-design, may view these emerging vendors not just as optional add-ons, but as core enablers of their relevance in a chiplet-dominated world.

The Alphawave acquisition by Qualcomm has certainly set off a ripple effect that elevates smaller modular IP firms into the strategic spotlight. Credo Semiconductor, Astera Labs, Achronix Semiconductor Corporation, and Rambus represent the most likely next wave of targets. Their specialized IP portfolios, proven integrations, and alignment with hyperscaler priorities make them critical players in the unfolding AI interconnect arms race. As Qualcomm consolidates its position, the question now shifts to how quickly Marvell and Broadcom will move to secure their own strategic footholds in the interconnect value chain.

How will competitive moves by Marvell, Broadcom, and Nvidia reshape the broader AI chip and networking ecosystem?

The competitive field is evolving beyond mere device performance. Interconnect efficiency, modular chiplet packaging, and cross‑platform synergy have become defining variables in future infrastructure computing. Broadcom and Marvell, through strategic acquisitions and hyperscaler alliance building, can potentially counter Nvidia’s growing in‑package interconnect strategies such as co‑packaged optics in Spectrum platforms. Nvidia is also using GPU‑based acceleration pipelines that depend on smooth interconnect performance and ecosystem support.

Institutional and analyst discourse already suggests bifurcation: GPU-first compute stacks optimised for raw parallelism, versus modular compute fabric built on IP layers and system-level readiness. If Marvell or Broadcom reinforce their ecosystems through IP acquisitions or hyperscaler engagements, they could capture market share in emerging disaggregated infrastructure—while a failure to act promptly may leave efficiency gains exclusively to Nvidia and new entrants like Qualcomm.

What financial and investor metrics should be monitored to gauge M&A and strategic responses?

Institutional investors and asset managers should keep track of fund flow for high-growth IP stocks normally trading under USD 5 billion market capitalization. Rising 13F disclosures in Achronix, Credo Semiconductor, or Astera Labs may reflect advanced interest from hedge funds or corporate venture signals. Licence revenue inflections, accelerated R&D spending, and developer ecosystem support can serve as proxies for upcoming deal momentum.

On the larger scale, Marvell and Broadcom share repurchases and M&A disclosure trends—particularly if capital expenditures are reduced in favour of IP acquisition strategies—would indicate resource prioritization consistent with competitive response. Surveillance of keyword mentions in earnings call transcripts, especially references to chiplet modularity and hyperscale partnerships, could provide an early warning of directional strategy shifts.