Why Qualcomm Stock Dropped This Morning
Qualcomm (NASDAQ: QCOM) stock shed about 2.5% through 12:30 p.m. ET on Tuesday, but the reasons why relate more to what's happening at a rival chip company than to anything occurring at Qualcomm itself.
If you are unfamiliar with MediaTek, it's worth getting acquainted. With a market capitalization of $47 billion, the Taiwan-based "fabless" semiconductor producer is barely one-third of Qualcomm's size. Yet it has been making some impressive moves this week.
Late Monday night, CNET reported that MediaTek is taking a page from Qualcomm's book, aiming to get in on the artificial intelligence action by building a new chip that will make it easier to use "ChatGPT-like" AI services "on-device" on smartphones. The significance of "on-device" is that it aims to provide smartphones with enough internal processing power to give useful AI responses to questions without pinging a data center for a cloud-based answer. This will be especially useful when a device can't get a wireless connection, for example, and can't access the cloud.
Source Fool.com
Qualcomm Inc. Stock
The stock is one of the favorites of our community with 36 Buy predictions and 1 Sell predictions.
With a target price of 172 € there is a slightly positive potential of 3.07% for Qualcomm Inc. compared to the current price of 166.88 €.
