Qualcomm is pushing to expand its business beyond mobile phones, recently partnering with San Diego Gas & Electric while preparing to pitch investors on its high-stakes artificial intelligence pivot.
On The Journal, reporter Asa Fitch broke down the company's strategy to capture a slice of the lucrative data center chip market. Fitch highlighted that during their April earnings call, they announced they had a major customer for their data center chips, suggesting they have "some ingredients that could really work well in the data center if they're all put together."
But challenging the market leader will not be easy. Fitch pointed to NVIDIA as "the elephant in the room, and it's really hard to displace that elephant." While Qualcomm has a "reasonable chance of success" if the AI boom continues apace, the company's upcoming investor meeting will be the true test of whether they can convince the market they can actually compete.