New York, October 28, 2025 — Qualcomm stock (NASDAQ: QCOM) jumped 11% on Monday after the company announced its bold entry into the AI data center market with two new processors — the AI200 and AI250 — positioning itself as a serious contender to industry giants Nvidia (NVDA) and AMD (AMD).
Qualcomm Steps Into the AI Arena
The QCOM stock rally came after the company unveiled its AI200 and AI250 chips and full rack-scale servers, designed specifically for AI inference — the process of running trained artificial intelligence models. Qualcomm’s approach differs from Nvidia and AMD, whose GPUs are often used for both AI training and inference.
The AI200, set to launch in 2026, will serve as Qualcomm’s first full server system equipped with a Qualcomm CPU and its signature Hexagon Neural Processing Unit (NPU). The AI250, arriving in 2027, promises a 10x improvement in memory bandwidth, enhancing performance for large-scale data center deployments. A third-generation chip and server setup is expected in 2028, as Qualcomm plans to follow an annual upgrade cycle.
Competing With Nvidia and AMD in the AI Chip Market
The move brings Qualcomm into direct competition with Nvidia and AMD stock holders closely watching the emerging AI chip race. While Nvidia dominates the training market with its H100 and upcoming Blackwell GPUs, and AMD continues to expand its MI300 series, Qualcomm is betting on energy efficiency and lower total cost of ownership as its competitive advantage.
According to Durga Malladi, Qualcomm’s Senior VP and GM for Technology Planning and Data Centers, the new products will allow customers flexibility — they can buy individual chips, partial systems, or full server setups. Interestingly, Malladi hinted that even rivals like Nvidia or AMD could potentially use Qualcomm’s chips as part of hybrid systems, creating a unique dynamic of both competition and collaboration.
A Return to the Data Center Market
This isn’t Qualcomm’s first attempt at data center dominance. In 2017, the company introduced the Centriq 2400 platform in collaboration with Microsoft, but the project was eventually shelved due to stiff competition from Intel and AMD, as well as internal challenges.
However, the company appears to have learned from those setbacks. Qualcomm’s AI200 and AI250 systems are designed as dedicated AI servers, unlike its earlier AI 100 Ultra card, which functioned as an add-on for existing hardware.
Why the AI Push Matters for Investors
The surge in Qualcomm stock reflects renewed investor optimism that the company can diversify beyond mobile processors into the high-growth AI infrastructure sector. The AI chip industry is projected to be worth more than $400 billion by 2030, and Qualcomm’s entrance signals that it wants a meaningful slice of that market.
With its focus on AI inference efficiency, scalable server design, and lower power consumption, Qualcomm could become a strong alternative for data centers seeking affordable AI hardware solutions. Analysts suggest that QCOM stock could see further upside if the company secures key data center clients in 2026.
Outlook for QCOM Stock and AI Market
As the AI race intensifies, the success of Qualcomm, Nvidia, and AMD stock will depend on who can balance performance, cost, and energy efficiency most effectively. With the first AI200 servers expected to ship next year, investors are watching closely to see if Qualcomm’s AI strategy can translate into sustained market share growth.
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