Semiconductor manufacturer Qualcomm (QCOM) revealed its new mobile chip, the Snapdragon 8 Elite, at its annual Summit in Hawaii. This chip is designed to bring computer-like capabilities to smartphones, strengthening Qualcomm’s position in the rapidly evolving generative AI market.
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It is worth highlighting that the chip has already received significant interest from major smartphone manufacturers. Companies like Samsung Electronics (GB:SMSN), OnePlus, and Xiaomi (HK:1810) have all agreed to use the new chip in their upcoming devices.
Snapdragon 8 Elite to Enhance Performance
The new chip features Qualcomm’s Oryon processor, which was originally developed for laptops, and is built using TSMC’s (TSM) advanced 3nm process. Compared to its predecessor, Snapdragon 8 Gen 3, the new mobile chip delivers a 45% improvement in both single-core and multi-core performance while using 27% less power.
To fully leverage this new technology, Qualcomm is equipping software developers with specialized tools that go beyond those provided by Alphabet’s (GOOGL) Android operating system. These tools will help developers unlock the advanced features of the Snapdragon 8 Elite chip.
By combining improved performance with enhanced developer support, Qualcomm aims to strengthen its position in the mobile chip market. Moreover, the introduction of the Snapdragon X Elite chip positions Qualcomm to compete more directly with Advanced Micro Devices (AMD) and Intel (INTC).
Is QCOM Stock a Buy?
Turning to Wall Street, QCOM has a Moderate Buy consensus rating based on 12 Buys, eight Holds, and one Sell assigned in the last three months. At $214.13, the average Qualcomm price target implies 26.7% upside potential. Shares of the company have gained about 19% year-to-date.
