Qualcomm Stock (QCOM) Rises after Launch of New PC and Robotics Chips

Semiconductor giant Qualcomm (QCOM) is continuing to expand into the PC market with the introduction of the Snapdragon X2 Plus, a new entry-level chip for Microsoft (MSFT) Windows laptops. The chip joins the Snapdragon X2 Elite and X2 Elite Extreme processors as part of Qualcomm’s plan to compete more directly with longtime PC chip leader Intel (INTC) and rival Advanced Micro Devices (AMD). Importantly, Qualcomm wants to reduce its reliance on smartphones and build a stronger presence in the PC market.

The Snapdragon X2 Plus is designed for both consumer and business PCs and will be offered with either six or 10 CPU cores. Notably, Qualcomm says that it delivers up to 35% faster peak performance than the previous Plus model while using 43% less power, which allows for multiday battery life. The chip also includes a built-in neural processing unit capable of up to 80 trillion operations per second, a key measure of how well a device can run AI applications.

Qualcomm’s move into PCs comes at a time when competition is heating up. Indeed, Intel is working on a turnaround and recently launched its Core Ultra Series 3 chips based on its new 18A technology, which could make competition tougher for Qualcomm and AMD. Separately, Qualcomm also revealed that it is pushing into humanoid robots and other physical AI systems. As part of that plan, the company introduced its Dragonwing IQ10 chip and said it believes the physical AI market could reach $1 trillion by 2040. Unsurprisingly, investors seemed to like these developments, as shares rose in today’s trading.

Is QCOM Stock a Good Buy?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on QCOM stock based on 11 Buys, four Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average QCOM price target of $198.93 per share implies 12.9% upside potential.

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