Qualcomm announced its entry into the artificial intelligence chip race on Monday, unveiling two new AI accelerator chips—the AI200 (launching in 2026) and AI250 (set for 2027)—to compete directly with Nvidia and AMD in the booming AI data center market.
BREAKING: Qualcomm stock, $QCOM, surges over +10% after announcing new AI chips to compete with AMD and Nvidia. pic.twitter.com/JZNiextsG6
— The Kobeissi Letter (@KobeissiLetter) October 27, 2025
Following the announcement, Qualcomm’s stock surged 15%, CNBC reported. The chips, designed for full liquid-cooled server racks, are based on Qualcomm’s Hexagon neural processing units used in smartphones but scaled up for AI inference, the process of running trained models.
Qualcomm claims its systems are more energy-efficient and cost-effective than rivals, with each rack using roughly 160 kilowatts of power.
BREAKING: Qualcomm $QCOM enters the data center AI chip market with AI200 and AI250 accelerators, challenging Nvidia's 90%+ dominance.
— WOLF (@WOLF_Financial) October 27, 2025
The AI200 launches in 2026, followed by AI250 in 2027. Both target enterprise data centers with accelerator cards and rack systems.
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The global race for AI chip dominance is intensifying, with Nvidia controlling over 90% of the market and a valuation above $4.5 trillion.
Qualcomm’s entry adds fresh competition as tech giants like Google, Amazon, and Microsoft also develop their own AI accelerators.
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TIPP Staff
