Shares in Qualcomm Integrated (Nasdaq: QCOM) are surging in premarket buying and selling this morning after experiences emerged that the corporate could also be on the cusp of a take care of artificial intelligence large OpenAI.
The deal would see Qualcomm CPUs powering a possible OpenAI smartphone—and could be an extra signal that AI might shift from being primarily GPU-powered to CPU-powered. Right here’s what you should know.
Will the CPU substitute the GPU within the AI area?
At the moment, crucial computing part underpinning the AI period is the Graphics Processing Unit (GPU). Historically, this was a devoted processor designed to render 3D graphics and video, and it was particularly vital within the gaming sector of the pc business.
However within the AI period, the processing energy of GPUs has made them an ideal device for high-performance duties like coaching and operating giant language fashions (LLMs), that are the spine of chatbots.
The significance of GPUs in AI growth has made GPU king Nvidia probably the most worthwhile firm on the planet.
However within the close to future, the AI business will undergo a shift.
The function of CPUs is predicted to turn into much more vital in knowledge facilities, as CPUs turn into extra superior and succesful. That is excellent news for CPU makers like Intel Company (Nasdaq: INTC), whose stock soared last week, pushed primarily by knowledge heart and AI (DCAI) income development.
This shift towards the rising significance of CPUs within the AI area can be prone to speed up, as extra superior CPUs allow extra AI fashions to run domestically on private units like smartphones, liberating LLMs from the power-hungry GPUs packed into in the present day’s knowledge facilities.
As soon as that occurs, smartphone makers will possible be lining as much as get their palms on probably the most succesful AI CPUs in the marketplace—and that’s one thing Qualcomm might quickly profit closely from.
OpenAI’s rumored smartphone might have a Qualcomm chip inside
For years, ChatGPT maker OpenAI has been rumored to be engaged on a bodily gadget meant to be the first manner you work together with AI.
Some recommend this gadget is likely to be screenless, taking the shape issue of a pen or a pendant, however others recommend that OpenAI might as a substitute simply launch its personal smartphone.
And now a report from revered TF Worldwide Securities analyst Ming-Chi Kuo appears to corroborate this. Writing in a post on X, Kuo says his newest business checks have revealed that “OpenAI is working with MediaTek and Qualcomm to develop smartphone processors,” and he believes these chips are possible destined for an OpenAI cellphone.
The report from Kou, who is thought for his wonderful observe report of sniffing out the largest plans of huge tech giants—together with Apple—by his supply-chain sources, is the primary purpose why Qualcomm inventory is hovering in the present day.
If Qualcomm will certainly be one of many main chip companions for a future OpenAI cellphone, the corporate’s coffers stand to learn enormously.
Qualcomm inventory surges after OpenAI report
As of this writing, QCOM inventory is at the moment up greater than 12.5% to $167.50 per share. The corporate’s inventory value closed at $148.85 on Friday.
Relatedly, on Friday, QCOM inventory surged greater than 11% after Intel’s earnings report, suggesting the CPU was rising ever extra vital within the AI period.
It needs to be famous, nevertheless, that neither Qualcomm nor OpenAI has publicly commented on any CPU deal. Quick Firm has reached out to each firms for remark.
Nonetheless, Kou’s report appears to have excited buyers.
As of Friday’s shut, QCOM shares have been nonetheless down almost 13% 12 months so far. However with in the present day’s additional inventory value information pushed by the OpenAI hypothesis, Qualcomm could be very near being again within the inexperienced, if in the present day’s premarket soar holds.
Over the previous 12 months, QCOM inventory was up about 1% as of Friday’s closing value. Qualcomm is predicted to announce its Q2 2026 earnings on Wednesday.
