Qualcomm's stock surged 5.12% in pre-market trading on Monday, following news that the deadline for its potential takeover of Alphawave IP Group has been extended. This extension signals ongoing negotiations between the two companies, fueling investor optimism about Qualcomm's strategic moves in the semiconductor industry.

According to the latest update, the deadline for Qualcomm to announce a firm intention to make a takeover offer or walk away from the deal has been pushed to May 27. This marks the second extension of the deadline, originally set for April 29 and previously extended to May 12. The continued talks suggest that both parties see potential value in the acquisition, although no financial details have been disclosed yet.

The positive movement in Qualcomm's stock aligns with a broader trend in the chip sector, as various semiconductor stocks gained in overnight trading. While Qualcomm's surge outpaced its peers, companies like Astera Labs, Microchip, Marvell, and industry giants such as Broadcom, AMD, and Nvidia also saw increases. This sector-wide momentum, coupled with the potential Alphawave acquisition, appears to be driving investor confidence in Qualcomm's future prospects.