Qualcomm Poised for AI Growth Spurt with New Chips Challenging Nvidia's Dominance
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Nvidia pioneered AI chips with its graphics processing units, fueling huge revenue and stock price growth, but its valuation is very rich.
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Qualcomm gets most revenue from smartphones, but AI smartphones are expected to surge over 300% by 2027, capturing over 80% of that market.
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Qualcomm launched new Snapdragon chips to power AI features in smartphones, including generative models, aiming to lead the AI phone market.
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Qualcomm is entering the AI PC market in 2024, which is growing 50% annually, presenting a big growth opportunity.
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Qualcomm trades at cheaper earnings multiples than tech stocks, presenting good value before growth accelerates from AI phones and PCs.