Qualcomm Inc. (NASDAQ QCOM) took a major step forward in its artificial-intelligence (AI) strategy when it launched the Snapdragon X Plus PC processor with 8 cores at the IFA conference held in Berlin.
Qualcomm’s latest offering, which is designed to handle AI tasks on Windows-powered PCs with impressive energy efficiency marks Qualcomm’s ambitious move into the PC market. This move could threaten the dominance of giants in the industry like Intel and AMD.
Qualcomm’s stock fell slightly in premarket trade on Wednesday despite this exciting development. This continued a recent trend of weakness.
Industry experts such as Neil Shah from Counterpoint Research believe that this new AI chips could be a turning-point for Qualcomm and set the stage for the stock to recover in the coming months.
Expertise in mobile AI technology
Neil Shah praised Qualcomm for its strategic entry into the PC industry and its timing. He also highlighted the company’s expertise in mobile AI.
Shah said that transferring this expertise to PC form factors was a natural progression. This will allow Qualcomm to capitalize on the increasing demand for AI capabilities within personal computers.
Qualcomm’s move may signal a change in its competitive position as the AI landscape expands, especially against established rivals.
Qualcomm is a major player in the smartphone chips market. It has supply agreements with companies such as Apple Inc.
Diversification of the company into the automotive and Internet of Things sectors (IoT), further bolsters revenue streams. This makes it a well rounded investment option.
Why is Qualcomm stock a good investment in September?
This month, investors may find Qualcomm stock attractive due to several key reasons.
The new AI chip from the company could be a key driver of future growth in the rapidly growing AI market.
Qualcomm’s shares currently trade at a multiple of 21 for price to earnings, making it one of more affordable options among the major semiconductor stocks.
Qualcomm offers a dividend yield as high as 2.08%. This adds to its appeal for long-term investments.
Qualcomm is also well positioned to grow, given the ongoing upgrade cycles of the smartphone industry and the shift to 5G.
Wall Street analysts predict that QCOM could reach $219. This would represent a potential gain of over 35% compared to its current levels.
Investors who want to profit from the AI revolution, and the evolution of the tech sector, may find that Qualcomm’s stock is a great opportunity.
This post Qualcomm launches AI powered PC chip: Is QCOM ready to rebound? This post may be updated as new information unfolds
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