Core Viewpoint - Wells Fargo maintains an Underweight rating on Qualcomm (QCOM) amid its expansion into AI technologies, highlighting competitive pressures in the semiconductor market [4]. Group 1: Company Developments - Qualcomm has officially launched its AI200 and AI250 accelerator cards and racks, specifically designed for AI inference, indicating a strategic move into datacenter solutions [2]. - The company has secured a deal with Saudi Arabia's Humain to deploy 200MW of Qualcomm AI systems starting in 2026, which could generate approximately $2 billion in revenue [3]. Group 2: Competitive Landscape - Competition in the AI semiconductor space is intensifying, with major players like Intel, AMD, and Nvidia targeting similar markets with their respective products [3]. - Wells Fargo analyst Aaron Rakers noted that Qualcomm's focus on rack-scale systems was unexpected, suggesting a shift in its strategic direction [2]. Group 3: Financial Outlook - Despite competitive challenges, Qualcomm is viewed as an attractive option for income investors due to its consistent dividend payouts, having raised dividends for 21 consecutive years [4]. - Wells Fargo has set a price target of $140 for Qualcomm, reflecting a cautious outlook on the stock's performance [4].