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Qualcomm Enters AI Chip Arena
Mobile chipmaker Qualcomm is set to debut its first artificial intelligence data center processor in 2024. This move marks Qualcomm’s entry into the AI sector, where Nvidia currently holds an estimated 90% market share. Qualcomm’s stock rose over 11% following the announcement of two new processors tailored for AI data centers.
Market Context and Growth Potential
The global market for data center chips is projected to grow from around $16 billion to over $60 billion by 2034, with a 15% annual growth rate. Qualcomm previously acquired AI specialize Alphawave Semi for $2.4 billion, signaling its intent to capture a share of this lucrative market. Meanwhile, AMD has reported a 14% year-over-year increase in its data center revenue, indicating that competitors are beginning to challenge Nvidia’s dominance.
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