In a bid to penetrate the personal computer industry, Qualcomm (NASDAQ:QCOM) Inc. has introduced its potent laptop processor, Snapdragon X. The chip, which boasts 12 high-performance cores running at 3.8 gigahertz, is said to be twice as fast as Intel (NASDAQ:INTC)'s comparable 12-core processor and consumes 68% less power. This development heightens competition in the computer processors market, where Nvidia Corp . (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD) Inc. are also developing their own CPUs using Arm technology.
Following the announcement, Qualcomm's stock initially rose by 1.5% but later declined amid a broader tech downturn. Qualcomm's CEO, Cristiano Amon, views these developments as a validation of Qualcomm’s decision to enter the PC market and is confident that the market will embrace Arm technology.
The Snapdragon X is claimed to run 50% faster at peak times than Apple’s M2, which Apple (NASDAQ:AAPL) promotes as the leading computer processor. To secure a significant position in the PC market, currently dominated by Intel’s technology, Qualcomm must substantiate these claims.
Amon suggests that PCs are evolving into communication devices and anticipates that AI capabilities will bring further transformation. The Snapdragon X was developed after Qualcomm acquired Nuvia Inc., a startup founded by ex-Apple executive Gerard Williams. This acquisition reduced Qualcomm's reliance on Arm's technology.
The new processor includes features tailored for AI workloads. Qualcomm proposes that AI can fully realize its potential if it migrates from data centers to end-user devices like phones and PCs.
Nvidia leads in data center chips enhancing AI computing and its move into PC processors intensifies competition. Nvidia's PC offering, along with AMD's new Arm chip, is expected to launch as early as 2025.
Intel, a dominant player since the 1980s, is feeling the pressure and is investing significantly in new technology under CEO Pat Gelsinger to regain its position. Concurrently, Qualcomm announced a new version of its Snapdragon 8 lineup for smartphones. This system on a chip, designed with AI workloads in mind, includes a processor, modem, and other components.
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