TLDR
- Qualcomm ($QCOM) dropped as it announced plans to acquire Arduino.
- Arduino to retain its brand, tools, and open-source mission under Qualcomm.
- Deal enhances Qualcomm’s AI and IoT expansion through Dragonwing technology.
- Arduino UNO Q board introduced, merging Linux and real-time microcontroller functions.
- Acquisition awaits regulatory approval; Arduino’s co-founder to exit post-deal.
Qualcomm (QCOM) shares dropped sharply during the trading day, closing at $165.46, down 1.87% from the previous day, after peaking near $171 in the morning. However, the stock showed a slight recovery in after-hours trading, rising 0.27% to $165.90 by 4:29 PM EDT.
The financial terms remain undisclosed. The acquisition marks another strategic move by Qualcomm to deepen its presence in artificial intelligence (AI) and the Internet of Things (IoT) sectors.
Arduino’s Legacy and Global Reach
Founded in 2005 at the Interaction Design Institute Ivrea in Italy, Arduino gained global recognition for its easy-to-use programmable boards, becoming a symbol of the “makers” movement. Over time, it evolved from educational and hobbyist applications to industrial and IoT systems. Between 2022 and 2023, Arduino raised $54 million in funding, with CDP Venture Capital playing a key role.
CEO Fabio Violante emphasized that joining Qualcomm will strengthen Arduino’s industrial and cloud infrastructure capabilities and expand its role in Edge AI—AI performed on local devices. He confirmed that the R&D team, largely based in Turin, Italy, will remain and likely grow.
Strategic Synergy in AI and Edge Computing
Qualcomm’s acquisition of Arduino aligns with its broader vision of integrating hardware, software, and cloud services for intelligent systems. Nakul Duggal, Qualcomm’s Group General Manager for Automotive, Industrial, and Embedded IoT, said the deal accelerates the democratization of AI and computing access for developers. By merging Arduino’s open-source ecosystem with Qualcomm’s cutting-edge platforms, the companies aim to empower millions of developers to build smarter solutions faster.
New Launch: Arduino UNO Q and AppLab
As part of the collaboration, Qualcomm introduced the Arduino UNO Q, a “dual-brain” board built on the Dragonwing QRB2210 chip. The device supports AI-driven vision and sound applications for smart homes and industrial automation. It features a Linux-compatible microprocessor and a real-time microcontroller, and it’s the first board to integrate with Arduino AppLab, a new environment unifying real-time, Python, and AI development.
Deal Terms and Future Outlook
The transaction remains subject to regulatory approval and standard closing conditions. Arduino will continue to operate independently, retaining its brand and mission while supporting multi-vendor hardware. Co-founder Massimo Banzi will assist during the transition before stepping down after two decades.
For Qualcomm, this acquisition follows the integration of Edge Impulse and Foundries.io, reinforcing its strategy to deliver a full-stack AI platform. As the company diversifies beyond smartphones into IoT and edge computing, the addition of Arduino’s community of 33 million users provides a strong foundation for innovation.
Performance Overview
As of October 7, 2025, Qualcomm’s trailing returns show a YTD gain of 13.83%, outperforming many peers despite lagging the S&P 500’s 14.72%. Over the past five years, QCOM has delivered 55.5% total returns, underscoring steady growth amid its evolving AI and IoT strategy.
