This week, Intel launched its Lunar Lake chip, designed to power artificial intelligence applications, as part of its effort to regain a competitive edge. However, Intel outsourced significant portions of chip manufacturing to TSMC, marking a shift from its historical reliance on in-house production.
Qualcomm's expansion strategy
With the potential acquisition, Qualcomm could significantly expand its presence in the PC chip market, which is increasingly tied to AI-based computing. Gogia adds that such a deal would “allow Qualcomm to create a niche to support devices that enable 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-powered PCs.
Qualcomm could also be interested in Intel's server and HPC segments, said Neil Shah, vice president of research at Counterpoint Research. “This is a key market that Qualcomm is not yet in, but where Intel is fighting 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.