Bank of America analysis confirms Qualcomm data center AI chip initiative as a meaningful new growth engine for the company.

Qualcomm Inc (NASDAQ:QCOM, ETR:QCI) is making a strategic pivot into artificial intelligence data center chips, a move Bank of America describes as pivotal diversification away from its slowing smartphone business. The chipmaker last week unveiled its new AI accelerator chips, the AI200 and AI250, expanding its product line and footprint into the fast-growing data center market. According to Bank of America analysts, "This announcement is a needed diversification away from the low growth smartphone market," with roughly 75% of Qualcomm's chip revenue still deriving from mobile devices.

The data center AI chip market represents substantial growth potential, with Bank of America estimating the market could reach $114 billion by 2030. The company's expansion, which includes its recent acquisition of Alphawave for high-speed connectivity and compute capabilities complementing its power-efficient CPU and NPU (Neural Processing Unit) cores, strengthens what analysts call its "diversification roadmap," building on prior moves into automotive and Internet-of-Things markets. While Qualcomm is currently targeting the lower end of the AI accelerator market, Bank of America expects its portfolio will evolve and expand. The firm estimates that even a modest 5% share of the projected non-GPU AI accelerator market could generate approximately $5.5 billion in annual revenue by 2030, or roughly 14% of Qualcomm's chip division sales.

Qualcomm shares are up 22% year-to-date, though they continue to lag behind competitors Nvidia and AMD, which have gained 43% and 115%, respectively. Bank of America notes that "High exposure to Apple's expected declines and risks of losing parts of Samsung's business explain Qualcomm's stock underperformance and low valuation." Despite the new growth prospects, the 2026 opportunity remains limited, with only one key deal and the need for Qualcomm to prove its technical execution. Nevertheless, Bank of America believes "these factors make the stock interesting for investors given the potential for total addressable market expansion and share gains."