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Qualcomm Incorporated (QCOM) experienced a significant surge in its stock price on October 27, 2025, following the company’s announcement that it is entering the artificial intelligence data center market. The mobile device chipmaker revealed two new AI inference-optimized solutions designed to challenge industry leader Nvidia in what has become the fastest-growing segment of the semiconductor industry.

The announcement marks a strategic expansion for Qualcomm as it seeks to diversify beyond its traditional smartphone business into the lucrative AI infrastructure space where hundreds of billions of dollars are being invested.

Inside Qualcomm’s AI200 and AI250 Chip Launch
 

Qualcomm announced two new AI inference-optimized products for data centers: the Qualcomm AI200 and AI250 chip-based accelerator cards and racks. The AI200 rack will be available commercially in 2026, followed by the AI250 rack in early 2027, with the company committing to an annual release cadence for new AI data center products.

Saudi Arabia-based Humain became the first customer, targeting deployment of 200 megawatts of Qualcomm AI systems starting in 2026.

The new processors are designed with a focus on performance per dollar per watt, leveraging Qualcomm’s expertise in power-efficient designs originally developed for mobile devices. According to senior vice president Durga Malladi, these solutions aim to redefine rack-scale AI inference capabilities, enabling customers to deploy generative AI at unprecedented total cost of ownership while maintaining flexibility and security.

The offerings will be available as standalone components, cards that can be added to existing machines, or as complete server racks, giving customers multiple deployment options.
 

AI Entry Boosts Qualcomm’s Market Cap Past $216 Billion
 

As of 10:35 AM EDT on October 27, 2025, Qualcomm stock was trading at $203.65, up $34.71 or 20.55% for the day, representing the biggest intraday gain in more than six months. Year to date, QCOM stock has gained over 32%, significantly outperforming the S&P 500’s 16.42% return, though over the past 12 months the stock is up approximately 20%.

The company’s market capitalization stands at $216.26 billion with a forward P/E ratio of 13.95 and analyst price targets ranging from $140 to $225.

Qualcomm’s entry into the AI data center market represents a critical diversification effort as the company seeks to reduce dependence on smartphones, which no longer deliver the rapid sales growth they once did. The AI data center market is currently dominated by Nvidia, which is on target to generate more than $180 billion in revenue from its data center unit this year alone.

Qualcomm is in discussions with major cloud computing buyers including Microsoft, Amazon, and Meta Platforms about deploying server racks based on its new hardware, which could provide a significant new revenue stream for the chipmaker.

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