Qualcomm under pressure following issues with new Samsung AI laptop

Shares of Qualcomm (QCOM) are sliding on Thursday following a news report saying that Samsung’s (SSNLF) AI laptop has encountered problems running some software programs including some popular games. Samsung’s Galaxy Book 4 Edge went on sale Tuesday and contains Qualcomm’s (QCOM) Snapdragon processor.

ISSUES WITH NEW AI LAPTOP: According to a report by The Wall Street Journal, Samsung said its latest AI-powered laptop has encountered problems running some software programs including popular games. Samsung’s Galaxy Book 4 Edge, which went on sale Tuesday in the U.S., South Korea and some other markets, contains Qualcomm’s Snapdragon processor. It runs a version of Microsoft’s (MSFT) Windows 11 for PCs that uses technology from U.K.-based Arm (ARM).

On Wednesday, Samsung put a notice on its Korean-language product site listing applications that it currently determines are incompatible with the new laptop or can’t be installed. The list included some Adobe (ADBE) software as well as popular games such as “League of Legends” and “Fortnite,” WSJ’s Yang Jie writes. “We’ve asked app developers for improvements, and will check on app improvement schedules to provide continual updates,” Samsung said.

For decades, PCs running Microsoft’s Windows typically used Intel (INTC) processors. However, PC makers—including Microsoft itself in some of its devices—have recently touted their use of Qualcomm’s Snapdragon chips, the report noted.

WHAT’S NOTABLE: A month ago, Microsoft announced new computers with advanced chips designed to run artificial intelligence features in Windows. The company unveiled a Surface Laptop and a Surface Pro tablet with a Qualcomm chip that could run some AI tasks without an internet connection. This came as other computer makers like Lenovo (LNVGY), Dell (DELL), HP (HPQ), Asus, Acer and Samsung were also preparing to launch AI PCs powered by Qualcomm’s Snapdragon X Elite and X Plus processors.

PRICE ACTION: In afternoon trading, shares of Qualcomm have dropped almost 6% to $214.47.