Qualcomm launches AI-powered PC chip: Is QCOM stock ready to rebound?

Qualcomm Inc. (NASDAQ: QCOM) has taken a significant step forward in its artificial intelligence (AI) strategy by launching the Snapdragon X Plus 8-core PC processor at the IFA conference in Berlin.

This latest offering, designed to handle AI tasks directly on Windows-powered personal computers with impressive energy efficiency, marks Qualcomm’s ambitious push into the PC market. This move could challenge the dominance of industry giants like Intel and AMD.

Despite this exciting development, Qualcomm’s stock dipped slightly in premarket trading on Wednesday, continuing a trend of recent weakness.

However, industry experts like Neil Shah of Counterpoint Research suggest that this new AI chip could be a turning point for Qualcomm, potentially setting the stage for a stock recovery in the coming months.

Established expertise in mobile AI technology

Neil Shah praised Qualcomm’s timing and strategic entry into the PC market, highlighting the company’s established expertise in mobile AI technology.

Shah noted that transitioning this expertise to the PC form factor was a natural progression, positioning Qualcomm to capitalize on the growing demand for AI capabilities in personal computers.

Qualcomm’s move could signal a shift in its competitive standing as the AI landscape continues to expand, especially against well-established rivals.

In addition to its AI advancements, Qualcomm remains a formidable player in the smartphone chip market, where it continues to secure supply agreements with major companies like Apple Inc.

The company’s diversification into the automotive and Internet of Things (IoT) sectors further bolsters its revenue streams, making it a well-rounded investment option.

Why is Qualcomm stock worth owning in September?

Investors may find Qualcomm stock particularly attractive this month due to several key factors.

The company’s new AI chip strengthens its position in the burgeoning AI market, potentially driving future growth.

Qualcomm’s shares are currently trading at a price-to-earnings multiple of 21, making it one of the more affordable options among major semiconductor stocks.

Qualcomm also offers a dividend yield of 2.08%, adding to its appeal as a long-term investment.

Moreover, with ongoing upgrade cycles in the smartphone industry, particularly the shift to 5G, Qualcomm is well-positioned for growth.

Wall Street analysts project that QCOM stock could reach $219, indicating a potential upside of over 35% from its current levels.

As Qualcomm continues to innovate and expand its market reach, its stock may present a compelling opportunity for investors looking to benefit from the AI revolution and the ongoing evolution of the tech industry.