Qualcomm's AI chip niche attracts investors, while AMD's AI business is not performing well.

From Nasdaq: 2024-06-12 07:45:00

Chipmakers AMD and Qualcomm have had differing fortunes in 2024 so far, with Qualcomm stock up 45% compared to 28% gains for the PHLX Semiconductor Sector index. Qualcomm’s robust position in the AI chip niche is attracting investors, while AMD’s AI business isn’t performing as strongly as expected. Who will come out on top in the AI chip market?

AMD has been late to the AI chip party dominated by Nvidia, but its revenue from data center chips is growing. The company increased its 2024 forecast for AI-related data center GPU revenue to $4 billion, up from $2 billion in previous estimates. New product developments and increased AI-enabled PC adoption could boost AMD’s AI business.

Qualcomm is capitalizing on the AI smartphone market, with Snapdragon processors powering on-device AI capabilities in flagship Galaxy smartphones. The company is targeting mid-range smartphones as well and aims to dominate the market for AI smartphone chips. Revenue is expected to increase, benefiting from the adoption of AI-enabled smartphones and PCs. Investors are drawn to Qualcomm’s dominant position in the fast-growing AI smartphone space, making it an attractive investment option over AMD.



Read more at Nasdaq: Better Artificial Intelligence (AI) Stock: AMD vs. Qualcomm