Qualcomm (QCOM) says it plans to develop an artificial intelligence (AI) microchip for use in smartphones.
The company says it will take the technology it has developed for AI data centers and adapt it for use in future smartphones, which would improve how AI runs on mobile devices. The chipmaker is already a leading supplier of processors for smartphones and wearable devices, including Apple’s (AAPL) iPhone.
News of the AI chips for smartphones comes days after Qualcomm officially entered the data center chip industry with its announcement that it is creating new microchips for use in AI data centers, saying it aims to fill the current supply shortage gap.
Qualcomm’s AI Opportunity
Qualcomm’s management team has said they see big opportunities with AI chips and are eyeing personal computers and motor vehicles as well as smartphones and data centers. The company’s High Bandwidth Compute architecture stacks chips vertically instead of placing them side-by-side, which puts memory and compute closer together, improving data speed and flow in the process.
Qualcomm says that its first data center chips will launch next year, with commercial availability expected in 2028. The company has not said when the AI processors for smartphones and other handheld devices will hit the market.
Is QCOM Stock a Buy?
Qualcomm’s stock has a consensus Hold rating among 32 Wall Street analysts. That rating is based on 10 Buy, 19 Hold, and three Sell recommendations issued in the last three months. The average QCOM price target of $218.36 implies 11% upside from current levels.
