Qualcomm Incorporated QCOM is expanding its presence in the compute market through its Snapdragon X series processors, aiming to become a major player in artificial intelligence (AI)- powered computing. The company is utilizing its expertise in power-efficient processors and wireless connectivity to strengthen its position in personal computers.
Qualcomm’s Snapdragon X Elite and Snapdragon X Plus processors are gaining traction for their ability to compete with traditional PC chips. Built on advanced technology and powered by its custom Oryon CPU cores, these processors deliver strong performance with lower power consumption, helping PC makers develop thinner, lighter and longer-lasting devices.
The company is also benefiting from the growing demand for AI PCs. Its processors include powerful Neural Processing Units (NPUs) that support features such as real-time translation, AI assistants, image generation and productivity tools. Major PC manufacturers like Dell Technologies, HP, Lenovo and Microsoft are using Snapdragon-powered chips in their latest devices.
As the global PC industry enters an AI-driven upgrade cycle, Qualcomm’s expansion into the compute arena could support long-term growth. Its focus on high-performance chips and advanced AI features may help improve its position in the evolving PC market.
How Are Competitors Advancing in the AI PC Market?
Qualcomm faces competition from Apple Inc. AAPL and Advanced Micro Devices, Inc. AMD. Apple is strengthening its AI PC business with the Apple Intelligence platform, which brings AI features to Mac devices. The company launched new Mac devices powered by M-series chips to support AI features such as real-time translation, writing tools and image generation. Apple is seeing rising demand for Mac Mini and Mac Studio devices for AI-related workloads and applications.
Advanced Micro is expanding its presence in the AI PC market through its Ryzen AI processors, which support AI features and on-device AI workloads. The company launched Ryzen AI 400 series chips with improved AI performance and better power efficiency for PCs and laptops. AMD is also working with PC makers like Lenovo, HP and Acer to launch more AI-powered PCs.
QCOM’s Price Performance, Valuation and Estimates
Qualcomm shares have gained 37.4% over the past year compared with the industry’s growth of 100.2%.
Image Source: Zacks Investment Research
Going by the price/earnings ratio, the company’s shares currently trade at 18.76 forward earnings, lower than 34.6 for the industry.
Image Source: Zacks Investment Research
Earnings estimates for fiscal 2026 have declined 3.4% to $10.79 over the past 60 days, while those for fiscal 2027 have also decreased 6.3% to $10.79.
Image Source: Zacks Investment Research
Qualcomm currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks’ Research Chief Names “Stock Most Likely to Double”
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company’s customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
