Park West's Qualcomm Play: A Coded Message in a $2.4B AI Deal

LONDON, UK – December 02, 2025

In the high-stakes world of corporate takeovers, the most telling moves often come not from the boardroom, but from the quiet disclosures of sophisticated investors. A recent regulatory filing in the United Kingdom has pulled back the curtain on one such maneuver, revealing how hedge fund Park West Asset Management is positioning itself around Qualcomm Incorporated’s impending $2.4 billion acquisition of UK-based chip designer Alphawave IP Group plc. The mandatory filing, a Form 8.3 required under the UK's stringent Takeover Code, details a series of complex stock and options trades that offer a masterclass in event-driven investing and provide critical signals about the deal's endgame.

While the acquisition itself is a story of strategic ambition—Qualcomm's push deeper into the lucrative data center and artificial intelligence markets—Park West’s trading activity provides the crucial "bottom line" perspective. For market watchers, these disclosures are more than just regulatory compliance; they are a breadcrumb trail left by "smart money," indicating conviction, risk management, and a nuanced view on one of the semiconductor industry's most significant recent transactions.

The Strategic Prize: Qualcomm's Data Center Gambit

Qualcomm's pursuit of Alphawave is anything but a casual purchase. It represents a calculated strike at the heart of the next wave of computing. As the world’s insatiable demand for data and AI processing power reshapes the technology landscape, Qualcomm is determined to expand its dominance beyond mobile handsets and into the high-performance data center. Alphawave, a specialist in high-speed connectivity IP and chiplets, provides the critical building blocks for this expansion. Its technology is essential for knitting together the complex systems that power modern AI and cloud infrastructure.

The strategic rationale is clear: combine Alphawave's connectivity prowess with Qualcomm’s own powerful Oryon CPUs and Hexagon AI processors to create a formidable, low-power, high-performance platform for AI inference workloads. With the acquisition now in its final stages—having cleared antitrust hurdles in the U.S., Germany, and Canada—the market is watching closely. A final court sanction hearing is scheduled for December 16, 2025, with the deal expected to become effective just two days later.

This move is underpinned by Qualcomm's robust financial health. The chip giant recently reported record revenues for its technology division in fiscal 2025, with non-Apple revenues growing 18% and its automotive and IoT segments showing combined 27% growth. This financial strength not only funds the acquisition but also provides a stable platform from which to integrate Alphawave and challenge established players in the data center market.

Decoding the Trades: A Nuanced Bet on the Outcome

Against this backdrop of strategic M&A, Park West Asset Management’s Form 8.3 filing provides a fascinating subplot. As an investment adviser with a stated "event-driven" strategy, Park West specializes in capitalizing on just these kinds of corporate actions. Its dealings in Qualcomm stock on December 1st, meticulously detailed in the filing, reveal a multi-faceted approach.

First, the firm executed a flurry of direct stock purchases, acquiring tens of thousands of Qualcomm shares in numerous small transactions throughout the day at prices hovering between $167 and $168 per share. This methodical accumulation suggests a straightforward bullish conviction, building a larger position as the acquisition's closure nears.

More revealing, however, is the firm's activity in the options market. The filing shows Park West "purchased to close" 57,000 put options on Qualcomm stock. These puts, with a strike price of $150 and an expiry date of January 16, 2026, were essentially a bearish bet or a hedge. By closing this position, Park West is effectively taking its chips off the table for a significant downturn in Qualcomm's stock price. This signals growing confidence that the stock is unlikely to fall below the $150 mark, a floor likely reinforced by the impending deal closure and Qualcomm's strong market performance.

Yet, the story doesn't end there. The same disclosure reveals that Park West continues to hold a substantial position of 146,200 written put options with the same $150 strike price and January 2026 expiry. Writing a put option is a bullish-to-neutral strategy. The writer collects a premium from the option buyer, betting that the stock price will remain above the strike price by the expiration date. If Qualcomm shares stay above $150, Park West simply pockets the income. If the stock were to fall below $150, however, Park West would be obligated to purchase the shares at $150 each. This dual-purpose position generates income while simultaneously signaling a willingness to acquire a large block of Qualcomm stock at what it may perceive as a discount, should unforeseen events derail the current market sentiment.

A Mandate for Transparency

This granular insight into a hedge fund's playbook is made possible by the UK Takeover Code's Rule 8.3. Unlike in many other jurisdictions, the code mandates public disclosure of dealings by any party holding more than a 1% interest in a company involved in a takeover. The rule is designed to promote a fair and transparent market, preventing influential investors from building positions in secret and ensuring all shareholders have access to information that could impact their decisions.

For analysts and investors, these filings are invaluable. They transform abstract market movements into concrete actions by identifiable players. Park West’s disclosure is a case in point, illustrating how institutional capital is navigating the final, critical weeks of the Qualcomm-Alphawave transaction. It shows a firm actively managing its risk, shedding some downside protection while maintaining a position that profits from stability and offers a strategic entry point in the event of a pullback.

As the December 18th effective date for the acquisition approaches, with only a final regulatory nod from South Korea pending, the market is pricing in a high probability of success. Park West’s recent trades seem to reflect this consensus, demonstrating a calculated pivot from hedging risk to positioning for a stable or upward trajectory in Qualcomm’s valuation. These moves, compelled into the light by regulation, underscore the intricate dance between corporate strategy, market speculation, and the relentless pursuit of returns that defines the bottom line.