Qualcomm (NASDAQ:QCOM) has long dominated the mobile chip market, but its latest push into artificial intelligence (AI) hardware raises questions for investors. With the AI boom driving massive gains for leaders like Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD),

The company is launching chip-based AI accelerator cards for AI inference and data center racks, and is counting Saudi Arabian AI firm Humain as its first customer.

Qualcomm is evolving from a smartphone chipmaker to a comprehensive AI technology leader. The transition won’t happen overnight, but the strategy appears appealing and the timing is favorable.

Qualcomm had datacenter envy back when Intel ruled the bit barns of the world, and now it has it even worse now that Nvidia has shown how AI processing

Qualcomm announced the AI200 and AI250 and has plans to release AI chips annually.

Qualcomm's announcement of new AI-enabling chips will allow it to go toe-to-toe with powerhouses like Nvidia and AMD.

Qualcomm announced new chips for AI data centers on Monday, in a move that could mean more competition for leading AI chipmakers such as Nvidia and AMD.

Available beginning in 2026, the AI200 is both the name of Qualcomm’s individual AI accelerator and the full server rack it slots into, complete with a Qualcomm CPU. The AI250 is Qualcomm’s next-generation AI accelerator and server coming in 2027. A third chip and server are scheduled for 2028.

Qualcomm Incorporated (NASDAQ:QCOM) is one of the most undervalued large cap stocks to buy right now. On October 27, HUMAIN, which is a PIF company, and Qualcomm announced a transformative collaboration to deploy advanced AI infrastructure in Saudi Arabia.