Core Viewpoint - Qualcomm is positioned to benefit from the growing AI market, with significant potential in AI accelerators and CPUs for AI servers, despite current market models not reflecting this opportunity [1][2][3] Qualcomm's AI Strategy - Qualcomm has been selling AI accelerators for years, and the introduction of next-generation parts could enhance its competitive position in the AI space [1][3] - The company has substantial option value in AI, which is not currently reflected in market models [2][3] Market Dynamics and Competition - The inference market is expected to be more fragmented compared to the trading market, which is dominated by Nvidia [5][6] - There is potential for Qualcomm to gain market share in inference, as the total addressable market (TAM) is large enough to accommodate multiple players [6][7] Nvidia's Position - Nvidia is expected to maintain a strong position in the inference market, but increased competition could impact its market dominance [7][8] - The key question for Nvidia is not pricing but the ability to continue improving performance, which has historically allowed them to maintain margins despite rising costs [10][12] Future Outlook - The overall opportunity in the AI market remains significant, and as long as the market continues to grow, there is room for various companies to benefit [9][10] - Nvidia's strategy focuses on enhancing GPU performance, which is crucial for sustaining margins in a competitive landscape [12][13]