Shares in Snapchat (SNAP) were higher today after its subsidiary Specs sealed a deal with Qualcomm Technologies (QCOM) to help deliver its vision of AI-powered glasses later this year.
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More Private Smart Glasses
Specs has announced a multi-year strategic agreement with Qualcomm to use its Snapdragon system-on-a-chip designed to power augmented and virtual reality devices. Specs, whose glasses will also be known as Specs are, according to Snapchat, standalone, see-through glasses that “bring the digital world to you, allowing you to see, hear, and interact with digital content just like it’s in your physical space.”
It hopes that Snapdragon platforms will “provide the foundation that enables intelligent, context‑aware experiences to run directly on-device, for faster and more private interactions.”
Snapchat has been floating the idea of smart glasses for some time now and earlier this year spun off a new company specifically focusing on the business venture.
Long-Running Saga
According to TechCrunch, Snap originally began developing the product over a decade ago. The last consumer-facing version of the glasses was released in 2019. Since 2024, the glasses have been a developer-only product. However, it hopes to finally launch the glasses later this year driven by the Qualcomm tie-up.
“We believe the future of computing will be more human and grounded in the real world,” said Evan Spiegel, co-founder and CEO, Snap Inc. “Our work with Qualcomm provides a strong foundation for the future of Specs, bringing developers and consumers advanced technology and performance that pushes the boundaries of what’s possible.”
“The next era of computing will be defined by devices that understand what you see, hear and say as well as context, and respond instantly to the world around you,” said Cristiano Amon, President and Chief Executive Officer, Qualcomm Incorporated. “Our work on future generations of Specs will enable power-efficient interactive AR devices that deliver agentic experiences that feel natural, intuitive and integrate seamlessly into daily life.”
The smart glasses market is increasingly a crowded space with other tech titans such as Meta (META) leading the way. Their eyes are on a large prize, given that the U.S. AI smart glasses market is projected to grow from around $0.40 billion in 2025 to $1.11 billion by 2035.
Is SNAP a Good Stock to Buy Now?
On TipRanks, SNAP has a Hold consensus based on 4 Buy, 19 Hold and 2 Sell ratings. Its highest price target is $15. SNAP stock’s consensus price target is $7.81, implying a 57.78% upside.
