Qualcomm (QCOM) shares surged 5.12% in pre-market trading on Monday, as investors reacted positively to news of extended takeover talks with Alphawave IP Group. The significant stock movement comes amid broader gains in the semiconductor sector, highlighting renewed investor confidence in chip stocks.

According to a statement from Alphawave IP Group, the deadline for Qualcomm to announce a firm intention to make a takeover offer has been extended to May 27. Both companies are reportedly engaged in ongoing negotiations regarding a possible offer. This extension, moved from the previous deadline of May 12, suggests that the talks are progressing and maintains the possibility of a significant acquisition for Qualcomm.

The potential acquisition of Alphawave, a UK-based semiconductor company, could strengthen Qualcomm's position in the highly competitive chip market. While financial details of the potential offer remain undisclosed, the market's reaction indicates that investors view this as a positive strategic move for Qualcomm. The extended negotiations also come at a time when the broader chip sector is showing strength, with several major players, including Nvidia, AMD, and Intel, seeing gains in recent trading sessions.