Qualcomm (QCOM), a leading mobile device chipmaker, announced its strategic entry into the fast-evolving market for artificial intelligence data center processors on Monday, resulting in a significant boost for its stock prices. The shares surged over 18% during morning trading, reaching 200.62.
The company unveiled two new AI inference-optimized solutions for data centers: the Qualcomm AI200 and AI250 chip-based accelerator cards and racks. The AI200 rack is slated for commercial release in 2026, with the AI250 following in early 2027. This release marks Qualcomm’s commitment to an annual launch of new AI data center products, affirming its ambition to capture a share of this competitive market.
Humain, based in Saudi Arabia, has signed on as an initial customer, aiming for deployment of 200 megawatts of Qualcomm AI systems starting in 2026. Qualcomm’s senior vice president, Durga Malladi, emphasized that the AI200 and AI250 redefine what is feasible for rack-scale AI inference. He highlighted the potential for generative AI deployment while maintaining flexibility and security, crucial for modern data center environments.
The company’s AI processors prioritize performance per dollar per watt, thus enhancing the value proposition for businesses integrating AI technology. “Our rich software stack and open ecosystem support make it easier than ever for developers and enterprises to integrate, manage, and scale already trained AI models on our optimized AI inference solutions,” Malladi noted. The compatibility with leading AI frameworks and one-click model deployment features are designed to promote rapid innovation and seamless adoption.
The AI data center market has traditionally been dominated by Nvidia (NVDA), with other notable players including Advanced Micro Devices (AMD) and Broadcom (AVGO). Qualcomm’s entry could shake up this landscape, offering new alternatives that focus on cost efficiency and performance.
Overall, Qualcomm’s bold move into AI data centers not only demonstrates its adaptability in a changing tech environment but also positions the company for significant growth in a sector that shows immense potential. With its new offerings, Qualcomm is set to innovate and expand its influence within the AI landscape, fostering opportunities for its clients and the broader market.