Qualcomm Inc. saw its biggest share rally since 2019 on Monday after launching a new lineup of artificial intelligence (AI) processors and computing systems aimed at the booming AI data centre market, directly challenging industry leader Nvidia Corp.
The chipmaker’s stock surged 22% to $205.95, while Arm Holdings Plc, which supplies foundational chip technology used by Qualcomm, rose 4.7% to $178.69.
Qualcomm’s Push Into AI Data Centres
The San Diego-based company, best known as the world’s largest maker of smartphone processors, is now seeking to capture a slice of the fast-growing AI infrastructure market — one that has already reshaped the global semiconductor industry and propelled Nvidia to become the world’s most valuable company.
Qualcomm introduced its AI200 chip series, which will begin shipping in 2026, with Saudi Arabian AI start-up Humain as its first customer. Humain plans to build 200 megawatts of computing capacity using Qualcomm’s new processors.
Distinctive Design and Energy Efficiency
Leveraging its expertise in mobile chip design, Qualcomm emphasized that the AI200 series will stand out due to its energy efficiency and memory architecture, key features that could appeal to clients looking for cost-effective AI computing solutions.
The company will offer the chips in multiple configurations — as individual components, plug-in cards for existing systems, or complete server racks delivered directly by Qualcomm. The firm also announced plans for a next-generation AI250 chip, expected in 2027.
These chips can be integrated into servers powered by processors from Nvidia or other rivals, or used as part of Qualcomm’s end-to-end server solutions, positioning the company to compete both as a component supplier and a full-system provider.
Expanding Beyond Smartphones
Under CEO Cristiano Amon, Qualcomm has been diversifying beyond smartphones amid slowing global handset sales. The company has already made inroads into automotive and PC chips, but its new data centre initiative marks its most ambitious move yet into the AI processor ecosystem — the most lucrative segment in the semiconductor market.
Qualcomm is reportedly in talks with major hyperscale clients — including Microsoft, Amazon Web Services, and Meta Platforms — to deploy server racks powered by its new AI chips. Securing deals with these tech giants could open up a major new revenue stream for the company.
