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QCOM Expands AI Capabilities With Strategic Buyout: Stock to Gain?
Zacks Equity Research
4 min read
In This Article:
QCOM -3.90%
AVGO +1.23%
INTC -7.36%
Qualcomm Technologies, Inc. QCOM recently announced the acquisition of MovianAI, the former generative AI division of VinAI, a prominent Vietnam-based AI company. The buyout extends Qualcomm’s decades of collaboration with the Vietnamese technology ecosystem. Vietnam’s information and communication technology industry has extensively utilized Qualcomm’s expertise to drive advancements in areas such as 5G, IoT and automotive technologies.
The acquisition will give Qualcomm access to VinAI’s comprehensive expertise in generative AI, machine learning, computer vision, and natural language processing. This will significantly accelerate Qualcomm’s effort in fundamental AI research. The integration of VinAI’s portfolio with Qualcomm’s extensive R&D expertise will facilitate the development of state-of-the-art AI-driven solutions for a wide range of industries, including smartphones, PCs, software-defined vehicles and more.
Will the Strategic Buyout Drive QCOM’s Share Performance?
Qualcomm is aiming to be the driving force of the next wave of AI innovation. Its strategic acquisitions and innovation initiative perfectly aligned with that strategy. The company has recently inked an agreement to acquire Edge Impulse Inc., a cutting-edge AI platform provider that enables developers to create, deploy and monitor AI models for various edge devices. Enterprises across industries are steadily integrating AI across their IoT devices to streamline workflows, leveraging rapid data collection and AI-enabled analysis. With the acquisition of Edge Impulse, Qualcomm is aiming to capitalize on this growing AI traction in the IoT ecosystem across several sectors, including consumer, security, healthcare, retail, energy and more. The acquisition of VinAI’s generative AI division will push the boundaries of customized AI models and engineering and strengthen its AI leadership across industries.
Shift in the share among OEMs at the premium tier has reduced Qualcomm's near-term opportunity to sell integrated chipsets from the Snapdragon platform. Qualcomm is facing intensifying competition from MediaTek in the mid-range and budget smartphone segment and Samsung’s Exynos processors in the premium smartphone segment.
Apple, Inc. AAPL has been a major buyer of Qualcomm’s chips over the years. However, the company is steadily pushing for in-house modem chip development. Apple’s acquisition of Intel Corporation’s INTC modem business was the commencement of this initiative. In March 2025, Apple rolled out the M3 Ultra, featuring the most powerful GPU and CPU to deliver impressive performance with efficiency. This development can impact Qualcomm’s revenue-generating capability.
Despite recent setbacks, Intel has remained a major player in chipset development. Moreover, Intel is witnessing solid momentum in the emerging market of AI PCs.
To counter these factors, Qualcomm is ramping up its AI initiatives, as evident from its recent acquisitions and product launches. It is placing a strong emphasis on developing advanced chipsets for AI PCs. QCOM took the market by storm with the launch of the Snapdragon X chip for mid-range AI desktops and laptops. The Snapdragon 8 Elite Mobile Platform is designed to support advanced AI features and is included in Samsung’s flagship smartphone. Such initiatives will likely allow Qualcomm to maintain its competitive edge amid intensifying competition.
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