Qualcomm Stock (QCOM) Falters Despite Vietnam AI Push

U.S. chipmaker Qualcomm (QCOM) continued its AI expansion today by launching a new research and development center in Vietnam.

GenAI Focus

Investors weren’t too overwhelmed, with the stock down 0.3% in pre-market trading, but Qualcomm hopes the move will boost AI development in the Asian country, which is increasingly a favorite for blue-chip firms looking for new supply chain routes away from China.

The AI R&D center will have facilities in Hanoi and Ho Chi Minh City, with teams of scientists, researchers, and AI specialists developing generative AI and agentic-AI solutions. This will be across smartphones, personal computers, extended reality, automotive, and Internet of Things applications.

Qualcomm said the move is aligned with Vietnam’s strategy to boost AI, semiconductors, and digital transformation. It will focus on transferring technology, ecosystem collaboration, and capacity building.

AI Deals

The new center will be Qualcomm’s second R&D site in the country. The first center opened in Hanoi in 2020 and focuses on 5G chipsets and related technologies.

The move follows Qualcomm’s acquisition in April this year of Vietnamese AI research startup MovianAI, the now-former generative AI division of VinAI Application and Research JSC (VinAI). It specializes in R&D in the areas of generative AI, machine learning, computer vision, and natural language processing.

It also builds on Qualcomm’s recent $2.4 billion deal to acquire U.K.-based chipmaker Alphawave IP Group as it looks to expand beyond mobile chips and deepen its presence in AI and data center technologies.

Despite its dip today, the Qualcomm share price is up nearly 5% year-to-date as the global AI revolution gathers pace.

Is QCOM a Good Stock to Buy Now?

On TipRanks, QCOM has a Moderate Buy consensus based on 8 Buy, 8 Hold and 1 Sell ratings. Its highest price target is $245. QCOM stock’s consensus price target is $177.75 implying a 11.70% upside.

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