Why is Qualcomm moving into AI chips for data centers?

Due to mounting pressure in the smartphone market, a memory chip shortage, and major customers like Apple and Samsung developing their own chips.

Who are Qualcomm's competitors in the AI chip market?

The main competitor is Nvidia, which dominates the market, along with other companies like AMD.

Qualcomm says Microsoft, Meta will use its new AI chips

Qualcomm announced that Microsoft and Meta will use its new AI chips, and it will make custom chips for two other unnamed hyperscalers. The shift reflects pressure in the smartphone market.

June 24, 2026

2 min read

Source: Reuters

Qualcomm (QCOM) said on Wednesday that Microsoft (MSFT) and Meta Platforms (META) will use its new AI chips, and that it will make custom chips for two other unnamed hyperscalers. The San Diego-based company, the leader in smartphone chips, held an investor presentation to showcase its move into supplying AI chips for data centers as it tries to gain a foothold in a market dominated by Nvidia (NVDA).

The Product

The new chips are designed for data centers, marking a strategic shift for Qualcomm from its dominance in smartphone chips to the AI data center market. The company aims to compete with Nvidia, which currently holds a commanding lead.

Pricing and Availability

Qualcomm did not disclose pricing or launch dates.

Competition

Qualcomm faces intense competition from Nvidia, which dominates the AI chip market for data centers. Additionally, major customers like Apple (AAPL) and Samsung are developing their own chips in-house.

Potential Impact on the Company

This move represents Qualcomm's attempt to diversify revenue away from the smartphone market, which has been squeezed by a memory chip shortage driven by surging demand for AI infrastructure.

Frequently Asked Questions

Qualcomm announced new AI chips for data centers, which will be used by Microsoft and Meta, along with two other unnamed hyperscalers.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.