Qualcomm stock spikes more than 20% as company enters AI chip race, taking on Nvidia, AMD

Core Insights - Qualcomm's shares increased over 20% following the announcement of its entry into the data center market with the AI200 and AI250 chips, aiming to compete with Nvidia and AMD in the multibillion-dollar sector [1] Product Launch - The AI200 will be available in 2026 and serves as both an AI accelerator and a full server rack, while the AI250 is set for 2027 and will be a next-generation AI accelerator [2] - A third chip and server are planned for release in 2028, with Qualcomm committing to an annual release schedule for future products [2] Technology and Design - The AI200 and AI250 utilize Qualcomm's custom Hexagon NPU, which has been adapted from its Windows PC chips for data center applications [3] - The AI chips are specifically designed for AI inference, focusing on running AI models rather than training them [4] Cost Efficiency - Qualcomm emphasizes the total cost of ownership as a significant advantage of its servers, highlighting low power consumption as a key benefit for data center builders [4][5] Product Differentiation - The AI250 will provide 10 times the memory bandwidth compared to the AI200, offering customers flexibility in choosing between individual chips or complete server setups [6] Market Positioning - Qualcomm's potential customers may include competitors like Nvidia and AMD, indicating a complex relationship where companies could be both rivals and partners [7] - This is not Qualcomm's first attempt in the data center market; a previous venture in 2017 with the Centriq 2400 platform faced challenges from Intel and AMD [7]