Home Large Cap Stocks Qualcomm Inc. (NASDAQ: QCOM) Chief Pitches ‘Intelligent Edge’ As It Ponders AI

Qualcomm Inc. (NASDAQ: QCOM) Chief Pitches ‘Intelligent Edge’ As It Ponders AI

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Qualcomm Inc.
Qualcomm Inc.

Qualcomm Inc. (NASDAQ: QCOM) plunges over 2.03% in pre trading session on Wednesday as The company believes that the future of AI will need more computational power than the cloud can deliver.

According to Alex Katouzian, senior vice president of Qualcomm, the world’s largest producer of smartphone chips is shifting from a communications company to a “intelligent edge computing” corporation. The edge in issue is the mobile device that a user taps to access a network or service, and Katouzian used his time at the Computex exhibition in Taipei to make the case for how enormous a market that will be.

The US company’s processors enable smartphones to use AI for anything from photo processing to virus detection. Katouzian and his colleagues joined a flurry of firms portraying themselves as beneficiaries of a surge in demand for artificial intelligence by highlighting the “AI-capable” components of their goods. According to him, the business has shipped 2 billion AI-capable gadgets to date.

“As the number of connected devices and data traffic grows and data center costs rise, it simply will not be possible to send everything to the cloud,” Katouzian added. People will not want to do so if personal information is involved, he adds.

Chip demand for AI tools like as Open AI’s ChatGPT is propelling shares of chipmaker Nvidia Corp. to new highs. The broader interest in AI has encouraged firms ranging from semiconductor designer Arm Ltd. to Taiwan’s Asustek Computer Inc. to focus on their AI-related services, with more than one CEO stating that a new computer era had begun.

In contrast to Nvidia, whose sales forecast for the current quarter exceeded expectations by more than 50%, Qualcomm’s forecast fell far short of expectations due to slow worldwide demand for mobile devices. According to Katouzian, the inventory excess will be depleted in the third or fourth quarter of this year. Some Qualcomm customers have begun to increase orders for smaller components, indicating an increase in demand, he added.