Qualcomm shares surged 12 percent on May 22 to a record high. The stock is up 75 percent over the past month. The move came as Wall Street recognised Qualcomm’s central position in the physical AI boom, CNBC reported.

Qualcomm has lagged Nvidia in the race for AI model chips. But it is solidifying its position as a key chip supplier for connected devices such as smart glasses, cars and robots, backed by its dominance in smartphones, CNBC reported.

OpenAI is also reported to be working with Qualcomm to develop AI chips for next-generation devices based on AI agents.

Qualcomm is emphasising "edge AI", which processes AI on devices rather than in the cloud. It supplies chips for Microsoft Surface PCs and smart glasses from Google and Meta. Arm-based chips supplied by Qualcomm are more energy-efficient than Intel and AMD chips, CNBC reported.

Qualcomm announced a contract with automaker Stellantis on May 21. Under the partnership, Stellantis will adopt Qualcomm Snapdragon processors across vehicle cockpits, connectivity and advanced driver-assistance systems.

Qualcomm has signed similar agreements with Bosch, Volkswagen, Hyundai and BMW. In its latest results, revenue from its automotive segment rose 38 percent from a year earlier to $1.3 billion. The company says the number of vehicles already running self-driving systems using Qualcomm processors has topped 1 million.

Data-centre chips are also a growth driver. AI200 and AI250, announced last year, are scheduled to launch in the second half of this year and will be offered as a full-rack system similar to Nvidia Vera Rubin and AMD Helios. Qualcomm CEO Cristiano Amon (크리스티아노 아몬) said in an April earnings release that it would supply data-centre chips to a large hyperscaler this year.