Qualcomm has unveiled two new AI chips designed for data centers, signaling a strategic shift to diversify beyond its core smartphone business amid slowing market growth. The announcement sent its shares soaring 20%, reflecting investor confidence in its AI ambitions.
The AI200 and AI250 chips, set for commercial release in 2026 and 2027 respectively, promise enhanced memory capacity and optimized performance for AI inference tasks. This positions Qualcomm to compete with industry leader Nvidia in the rapidly expanding AI infrastructure sector, where global investments have surged to support generative AI tools and large language models.
In a significant partnership, Saudi Arabia's AI startup Humain – backed by the nation's sovereign wealth fund – plans to deploy 200 megawatts of Qualcomm's AI racks starting in 2026. Analysts view this as evidence of growing demand for decentralized, cost-efficient AI solutions beyond current market leaders.
While Nvidia maintains dominance through superior performance and entrenched ecosystem advantages, Qualcomm's entry highlights the semiconductor giant's broader diversification strategy. The company has recently expanded into PC chips challenging Intel and AMD, while remaining the world's top smartphone modem chip supplier.
Joe Tigay of Rational Equity Armor Fund noted: "The Saudi deal shows the AI compute market is fragmenting. No single player can meet all global needs." This development underscores Asia's growing role in shaping next-generation tech infrastructure, with implications for investors and tech professionals worldwide.
