This week, Intel launched its Lunar Lake chip, designed to power AI applications, as part of its push to regain a competitive edge. However, Intel outsourced significant portions of the chip’s fabrication to TSMC, a shift from its historical reliance on in-house production.
Qualcomm’s expansion strategy
With the potential acquisition, Qualcomm could significantly expand its footprint in the PC chip market, which is becoming increasingly intertwined with AI-driven computing. Gogia adds that such a deal would “allow Qualcomm to carve out a niche for supporting devices that allow AI tasks to be run without an internet connection.” This could further strengthen Qualcomm’s relationship with Microsoft, especially as both companies continue to explore opportunities in AI PCs.
Qualcomm may also be interested in Intel’s server and HPC segments, opined Neil Shah, VP for Research at Counterpoint Research. “This is a key market where Qualcomm is not yet playing, but where Intel is struggling against NVIDIA and AMD,” he said adding that Intel’s Altera (FPGA) and Movidius (Visual Processing Units) would help fill gaps in Qualcomm’s portfolio.