Qualcomm's new AI chip is here! Is Nvidia worried?

Qualcomm announced the launch of two AI inference-optimized chips, AI200 and AI250, to compete with Nvidia in the data center market. Qualcomm's stock price soared over 19% intraday.

Today, Decoder Brother will talk about this with everyone.

First, will the competitive landscape of the AI chip market change? Decoder Brother believes competition will intensify, but it will be difficult to overturn Nvidia's dominant position in the entire AI chip market in the short term.

Qualcomm's AI200 and AI250 chips are positioned for the data center inference market, which differs from Nvidia's current flagship products that focus more on AI training and high-performance computing. Although the growth rate of the inference market is not as fast as the training market, demand is rapidly increasing, especially in generative AI deployment scenarios like large model inference.

Qualcomm has the advantage of low-power expertise. Its partnerships with cloud providers (e.g., AWS, Google Cloud) may help its chips enter the market quickly. Additionally, Qualcomm's presence in the automotive and edge computing sectors can provide synergies for AI inference. Meanwhile, the inference market has relatively less competition. Nvidia holds 98% of the market share in the data center training market, while the inference market has more players and is not dominated by a single company. Qualcomm may gain market share through differentiated competition.

However, Nvidia's CUDA software ecosystem and GPU architecture are deeply entrenched in AI development, and the developer community heavily relies on its platform. Qualcomm needs to invest significant resources to build a compatible software stack; otherwise, it will struggle to attract developers.

Another practical issue is that AI200 and AI250 won't be commercially available until 2026 and 2027, respectively. This delay may cause Qualcomm to miss the early benefits of the current AI boom, while Nvidia and AMD are already accelerating iterations.

In the short term, Qualcomm will find it difficult to shake Nvidia's dominance, as the latter's lead in the training market and software ecosystem is too strong. In the long run, if Qualcomm can resolve software ecosystem issues and deepen ties with cloud providers, the market landscape may see partial changes, and the inference market could form a multi-player competitive dynamic of "Nvidia + AMD + Qualcomm + Intel."

$Qualcomm(QCOM.US) Qualcomm (QCOM) surged over 11% yesterday, reflecting market optimism about its AI strategy.

Previously, Qualcomm released AI100, which sold moderately, not due to poor technology but because of ecosystem lag and missed timing. Now, Qualcomm is entering the AI chip market with new products, which could be a new growth driver.

Decoder Brother is cautiously optimistic about Qualcomm. If it can stabilize at 180, the stock price may test historical highs. Next week's Q4 earnings report is due, and Decoder Brother believes the short-term hype won't fade. Set a profit-taking range, and partial profit-taking could be considered at 205-215.

$NVIDIA(NVDA.US) Although Nvidia (NVDA) faces challenges from Qualcomm, it still saw a moderate rise on the 27th. It surged early in the session before pulling back, then bottomed at 188.43 in the afternoon before rebounding in a V-shape, closing at $191.49, up 2.81%.

Qualcomm's entry into the AI chip market intensifies competition and boosts sentiment across the AI ecosystem. Despite competition, Nvidia's 98% share in the training market and CUDA ecosystem barriers make it the biggest beneficiary in the eyes of the market, with its stock driven by the tech sector. Recently, many tech giants have been focusing on To G business. Nvidia and Deutsche Telekom plan to invest €1 billion in building a data center in Munich to expand AI infrastructure in Europe, with SAP as a key client. Business cooperation has been strong.

Breaking the 200 resistance level will require more effort, but the upward momentum is strong, and call options can be considered. $GraniteShares 2x Long NVDA Daily ETF(NVDL.US)