Qualcomm Inc. (NASDAQ:QCOM) is pushing deeper into premium smartphones with two new high-end AI-first processors designed to run more artificial intelligence tasks directly on devices.
Qualcomm Expands On-Device AI Push
On Tuesday, Qualcomm introduced the Snapdragon 8 Elite Gen 6 and higher-end Snapdragon 8 Elite Extreme Gen 6 at its annual Snapdragon Summit, targeting premium Android devices.
The chips include new sensing hubs capable of running models with up to 200 million parameters. Qualcomm said phones can use the technology to run a personal scribe, distinguish between speakers and build memory from users’ activity to provide better task suggestions, TechCrunch reported on Tuesday.
The chips can also support a complete voice-in, voice-out AI agent directly on the device.
The Extreme version can locally run a 30-billion-parameter mixture-of-experts model, while the standard Gen 6 includes a new accelerator designed to run AI models more efficiently.
Takes Aim At Apple’s Premium Chips
Qualcomm is positioning its latest processors against Apple Inc.’s (NASDAQ:AAPL) A20 Pro, which powers the iPhone 18 Pro lineup.
The company is also using Taiwan Semiconductor Manufacturing Co. Ltd.’s (NYSE:TSM) most advanced manufacturing technology, putting Qualcomm and Apple on increasingly similar footing in the underlying chip production process, CNBC reported on Tuesday.
Qualcomm’s Extreme chip adds higher-end camera features, including 8K video at 60 frames per second and 4K video at 240 frames per second. Both chips can also use AI to boost vocals and reduce background noise during calls.
Motorola announced that its Signature 27 smartphone will use the Snapdragon 8 Elite Extreme Gen 6, with availability expected this year.
Premium Smartphones Take Greater Importance
The launch comes as higher memory prices raise smartphone costs and pressure demand. Counterpoint expects global smartphone shipments to decline 14% this year.
That backdrop is pushing Apple and Android manufacturers toward higher-priced devices.
For Qualcomm, the strategy increasingly centers on powering the most expensive, AI-focused Android smartphones while consumers continue to use phones as a primary platform for AI applications.
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Qualcomm Stock Analysis
Qualcomm stock traded slightly lower Wednesday in premarket trading. The move came even as broader U.S. stock futures edged higher. Nasdaq futures were up 0.01%, while S&P 500 futures gained 0.07%.
Qualcomm’s early weakness appears to reflect profit-taking and premarket positioning after a strong multi-month rally. The stock has climbed well above its major moving averages. That can prompt traders to lock in gains, even when the broader trend remains positive.
Qualcomm remains in a strong technical position. The stock is 12.2% above its 20-day simple moving average of $175.93. It is also 16.9% above its 50-day SMA of $168.91 and 17% above its 200-day SMA of $168.79.
The moving averages also remain favorably aligned. The 20-day average is above the 50-day average, while the 50-day sits above the 200-day. The latter followed a golden cross in September.
However, the stock’s distance above its shorter-term averages suggests it may be extended. That could leave it vulnerable to pullbacks as traders take profits.
Momentum remains positive. The MACD is above its signal line, while the histogram is positive. That indicates buyers have regained some control following the previous pullback.
Resistance sits near $233.50. Qualcomm’s 52-week high is $259.92. Support is around $190.50.
Analyst Outlook
Qualcomm carries a Hold consensus rating, with an average price forecast of $196.95.
Piper Sandler initiated coverage with a Neutral rating and $190 price forecast on Sept. 10. RBC Capital maintained a Sector Perform rating and raised its price forecast to $180 on Sept. 9. Rosenblatt maintained a Buy rating and $235 price forecast the same day.
The stock trades at a price-to-earnings ratio of about 22.7.
Qualcomm Benzinga Edge Rankings
The Benzinga Edge scorecard gives Qualcomm a momentum score of 83.81 and a quality score of 92.32.
However, its value score stands at 27.04, while its growth score is 32.57.
The readings point to strong momentum and business quality, while valuation and growth remain comparatively weaker parts of the setup.
ETF Exposure
Qualcomm is a major holding in several exchange-traded funds.
The First Trust Nasdaq Semiconductor ETF (NASDAQ:FTXL) has a 6.71% weighting in Qualcomm. The Tema Global Royalties ETF (NASDAQ:ROYA) has a 5.25% weighting, while the VanEck Fabless Semiconductor ETF (NASDAQ:SMHX) has a 4.99% weighting.
That exposure means significant flows into or out of those funds can translate into additional buying or selling of Qualcomm shares.
Qualcomm Price Action
Qualcomm shares were down 0.39% at $197.49 in Wednesday premarket trading, according to Benzinga Pro data.
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