QUALCOMM Incorporated (NASDAQ: QCOM announced on Monday that it plans to re-enter the data center CPU market with NVIDIA Corporation (NASDAQ: NVDA ). The company will develop custom central processing units for data centers that use NVIDIA's technology to connect efficiently with its artificial intelligence chips.
A bird's-eye look at a busy area dedicated to semiconductor manufacturing, highlighting the company’s integrated circuits.
This is not the first time that QUALCOMM Incorporated (NASDAQ:QCOM) will be making CPUs for data centers. Back in 2010, the company began the development and testing of Arm-based CPUs with Meta Platforms. However, these developments were scaled back due to cost constraints and legal challenges. The CEO of QUALCOMM Incorporated (NASDAQ:QCOM), Cristiano Amon, noted that they have been quietly reviving their data center CPU ambition by being in talks with Meta Platforms, and they also recently signed a letter of understanding with an AI firm in Saudi Arabia to co-develop custom data center CPUs.
Now, the company will incorporate its CPUs with NVIDIA’s GPUs to deliver high-performance, energy-efficient computing tailored for AI applications. This initiative, which was announced at COMPUTEX 2025, aligns with QUALCOMM Incorporated’s (NASDAQ:QCOM) broader strategy to diversify its revenue streams. During the fiscal second quarter of 2025, the company highlighted that it is targeting $22 billion in non-handset revenue by 2029, with AI being a key driver of growth.
Although we recognize the appeal of investing in QCOM, we feel that certain AI stocks offer better prospects for achieving substantial gains with reduced risk. Should you seek an AI stock deemed more promising than QCOM, potentially offering up to 100 times return, consider reviewing our detailed report on this opportunity. cheapest AI stock .
READ NEXT: 11 Most Promising New Technology Stocks According to Analysts and 12 Top Growth Stocks to Purchase and Keep for the Long Haul .
Disclosure: None
0 Comments