How does on-device AI affect silicon content in phones?

On-device AI increases the need for more powerful processors and larger memory, raising the silicon content per phone.

What is the smartphone upgrade cycle?

It is the period when users replace their phones with newer models, typically every 2-3 years.

Does RF complexity affect phone chips?

Yes, with the evolution of 5G and 6G networks, RF complexity increases, requiring more advanced chips to manage signals.

5 Smartphone Chip Stocks Poised for Next Upgrade Wave

As the next smartphone upgrade cycle approaches, silicon content per handset is quietly repricing due to on-device AI and RF complexity. The analysis identifies five chip stocks that are already splitting into winners and losers before most investors notice the gap.

July 11, 2026

2 min read

Source: 24/7 Wall St.

According to 24/7 Wall St., the smartphone chip market is undergoing a quiet transformation as the next upgrade cycle approaches. The integration of on-device AI and increasing RF complexity are repricing silicon content per device, creating opportunities and challenges for five key stocks.

Details

The analysis identifies five smartphone chip stocks poised for the next upgrade wave, expected to benefit from rising demand for advanced components. With each upgrade cycle, the average silicon content per phone increases, boosting revenues for chipmakers.

Context

These projections come amid a slowdown in smartphone sales, but the new upgrade cycle could stimulate demand. Companies focusing on AI and advanced communications technologies (e.g., 5G and 6G) may be best positioned.

What It Means for Investors

Investors should monitor companies with competitive advantages in on-device AI and RF signal processing, as these areas will be pivotal in the next upgrade cycle. It is advisable to analyze these companies' portfolios and readiness for the new demand wave.

Frequently Asked Questions

The report does not explicitly name the five stocks, but it indicates that leaders in on-device AI and RF technologies are best positioned.

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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.