Qualcomm Stock Surges 12% After Launching New AI Chips to Challenge Nvidia
Qualcomm (NASDAQ: QCOM) shares jumped 12% on Monday after the chipmaker unveiled two new AI inference chips designed for data center computing — a move that directly challenges Nvidia’s (NASDAQ: NVDA) dominance in the artificial intelligence hardware market.
Qualcomm Enters the Data Center AI Race
The semiconductor company introduced the Qualcomm AI200 and AI250 accelerator cards and rack solutions, both optimized for generative AI inference workloads. Qualcomm claims the new lineup offers industry-leading efficiency and total cost of ownership, positioning it as a serious contender in the AI infrastructure space.
The AI200 features 768 GB of LPDDR memory per card, while the AI250 introduces a near-memory computing architecture that delivers over 10x higher effective memory bandwidth with significantly lower power consumption. Both chips support PCIe and Ethernet connectivity and include direct liquid cooling for improved thermal performance.
Strategic Partnership with HUMAIN in Saudi Arabia
Alongside the product launch, Qualcomm announced a major collaboration with HUMAIN, a technology firm based in Saudi Arabia. The agreement involves deploying 200 megawatts of AI infrastructure using Qualcomm’s AI200 and AI250 rack systems starting in 2026, helping establish the Kingdom as a global AI hub.
“With Qualcomm’s world-class AI infrastructure, we’re shaping the foundation of the Kingdom’s AI future,” said Tareq Amin, CEO of HUMAIN.
Cristiano Amon, CEO of Qualcomm, added: “By powering advanced AI data centers, we’re helping Saudi Arabia build a next-generation technology ecosystem and accelerate its intelligent computing ambitions.”
Analysts React to Qualcomm’s AI Expansion
According to Bernstein analyst Stacy Rasgon, the 200-megawatt project equates to roughly 1,250 AI racks, each rated at 160 kW. Rasgon, who maintains an Outperform rating on Qualcomm, said that while market traction for the new products remains to be seen, investors should start factoring in Qualcomm’s growing AI exposure.
“Plenty of companies are benefiting from the ‘small slice of a big pie’ thesis — perhaps it’s time to give Qualcomm some of that benefit,” Rasgon said.
Rasgon noted that Qualcomm has been selling AI accelerators for years, including the AI100 in 2019, but the new AI200 and AI250 mark the company’s first rack-scale architecture — a significant step into large-scale data center operations.
A New Era for Qualcomm’s AI Strategy
The launch highlights Qualcomm’s strategic expansion beyond its mobile processor roots into the data center AI market, which is projected to grow rapidly through the decade. The company has pledged an annual AI product cadence, focusing on inference performance, energy efficiency, and competitive pricing.
Commercial availability is expected in 2026 for the AI200 and in 2027 for the AI250.
