Qualcomm (QCOM) chips may help Samsung (SSNLF) leapfrog Apple (AAPL) in the AI smartphone stakes as the South Korean manufacturer touted its latest devices.
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Samsung on Wednesday released its newest Galaxy S25 smartphones, powered by Qualcomm’s chips and Alphabet’s (GOOGL) artificial-intelligence model, as it seeks to boost sales in the face of stiffening competition from both the U.S. and China.
For Samsung it marks its latest efforts in pushing AI to the forefront of its devices, with the launch leaning heavily on AI tools. The new Galaxy S25 series uses Google’s Gemini AI model as the AI engine.
The company also previewed a slimmer version of the flagship models, with the goal of getting a jumping on Apple’s own slimmed-down devices by launching the Galaxy S25 Edge in the first half of the year.
For QCOM it comes at an important juncture ahead of its next earnings report and fears about potential losses from Apple earnings, something one analyst suggests should be discounted.
Samsung Market Share Central to QCOM
Alongside the Samsung announcement came Qualcomm, which unveiled the Snapdragon 8 Elite Mobile Platform for Galaxy.
Samsung said this is the most powerful chipset ever on the Galaxy S Series, delivering a performance boost of 40% in the all-important neural processing unit demanded by AI functions.
As such, the chip’s power means more functions that were previously cloud-based can be carried out on the device itself.
According to ZDNet editor Sabrina Ortiz, with the QCOM and GOOGL-powered phones Samsung has overtaken Apple in terms of AI in consumer devices.
“With the Snapdragon 8 Elite for Galaxy, we are not just enhancing performance; we are redefining the user experience by integrating cutting-edge on-device AI and connectivity features that will shape the future of mobile technology,” said O.H. Kwon, senior vice president and president, Qualcomm APAC.
It’s been a busy time for QCOM’s Arm-based Snapdragon series. At CES 2025, the company unveiled an 8-core Snapdragon X chip that will power budget laptops and mini-PCs in the $600 range.
Meanwhile, earlier this week five-star JPMorgan analyst Samik Chatterjee placed QCOM on a “positive catalyst watch”, citing potential share wins with Samsung to lead to a positive earnings print, ahead of the 2025 Fiscal first quarter release on January 29th.
He cited potential gains from the Samsung Galaxy S25 smartphone as a key reason to be positive, and highlighted a shift in investor’s focus from AAPL-related revenue losses to QCOM-driven factors such as a higher silicon content supporting AI functions on high-end devices. The analyst also noted that company is experiencing a boost from its engagement with Chinese smartphone makers.
Is QCOM a Good Stock to Buy?
Overall, Wall Street has a Moderate Buy rating on QCOM, based on 11 Buys, 10 Holds and one Sell. The average QCOM price target of $198.05 implies around 16% upside from current levels. Shares in QCOM are up 13% in the last year.
