Qualcomm Poised to Outshine Nvidia, AMD, Broadcom in AI Semiconductor Boom
Qualcomm is poised to outperform its peers in the AI semiconductor boom, according to recent developments. Despite lagging behind Nvidia, AMD, and Broadcom in terms of growth, Qualcomm's influence in AI chips is growing rapidly. The company has secured partnerships with major hyperscalers, including Meta Platforms and Amazon, to supply its Dragonfly data center CPUs and custom AI chips.
Qualcomm's valuation is attractive at present, trading under 17 times forward earnings, cheaper than its peers. However, an acceleration in the company's growth rate could be rewarded with a higher valuation, potentially sending the stock price higher. The company estimates that its data center revenue will hit $5 billion in fiscal 2027 and scale up to $15 billion in fiscal 2029.