Qualcomm Wants to Beat Nvidia in AI Chips, but QCOM Stock Needs to Win Over Wall Street First

Qualcomm (QCOM) was touted as a great 5G technology stock, but it never lived up to the hype. With AI dominating Wall Street these days, QCOM has another challenge at hand: convincing Wall Street that the chipmaker has great AI prospects. In the past, Qualcomm’s legal feud with Apple (AAPL) was largely responsible for the negative sentiment. Despite resolving those issues, the company continues to operate under the shadows of AI giants like Nvidia (NVDA), Broadcom (AVGO), and AMD (AMD).

The chipmaker has no shortage of quality products and a product pipeline. It is working on bringing AI to devices, also called “edge” computing. It recently announced the Snapdragon 8 Elite Gen 5 SoC(System on a Chip), which combines components like the CPU, GPU, and memory onto one chip. This system is designed specifically for mobile devices, but QCOM also has a solution that will power edge computing on future cars, helping develop Advanced Driver Assistance Systems(ADAS). The company’s Snapdragon Digital Chassis platform will go a long way in defining its role in fully software-defined vehicles of the future, helping it tap into multiple segments of the automotive industry.