Can Qualcomm Stock Benefit From a Foray Into Mid-Range AI Chips?

Core Insights - Qualcomm has launched the Snapdragon X chip for mid-range AI desktops and laptops, featuring an 8-core Oryon CPU and a neural processing unit (NPU) capable of 45 TOPS, aimed at enhancing AI capabilities in Windows devices [1][7] Qualcomm's Product Development - The Snapdragon X chip is the fourth in the Snapdragon X processor line, following the Snapdragon X Plus 8-core, Snapdragon X Plus, and Snapdragon X Elite series [1] - The NPU in the Snapdragon X chip accelerates AI workloads, making it suitable for Microsoft's AI-first Copilot+PCs [1][2] AI PC Market - AI PCs are equipped with specialized processors to enhance AI functionalities, including personal assistants and task automation, while also promising improved battery life [2] - Qualcomm's chips, based on Arm Holdings designs, are expected to provide extended usage without frequent charging [2] Competitive Landscape - NVIDIA is expanding its presence in enterprise AI, with its DGX Cloud AI infrastructure gaining traction among companies for automating workflows and improving decision-making [4] - Intel is investing in its IDM 2.0 strategy to enhance manufacturing capacity and support large AI workloads with its Xeon 6 processors, which are designed for cost-effective AI processing [5] Financial Performance - Qualcomm's shares have increased by 13% over the past year, while the industry has seen a growth of 41% [6] - The company's earnings estimates for fiscal 2026 have risen by 2% to $12.15 per share, and for fiscal 2027, they have increased by 3.4% to $12.6 [9][10] - Qualcomm's shares currently trade at a price/earnings ratio of 14.16, significantly lower than the industry average of 34.14 [8]