Qualcomm shares soar 13% on reports of OpenAI partnership for AI smartphone processors

Qualcomm Soars on Report It's Working With OpenAI on Smartphone

Qualcomm Inc. shares jumped in premarket trading on Monday after a closely watched tech industry analyst suggested the chipmaker is working with artificial intelligence giant OpenAI on a smartphone. Shares of the San Diego-based company gained 14% in early trading following a post on X by TF International Securities analyst Ming-Chi Kuo, which said his latest industry checks had revealed that OpenAI was working with MediaTek Inc. and Qualcomm to develop smartphone processors. Kuo added that Luxshare Precision Industry Co. is working as the "exclusive system co-design and manufacturing partner." Luxshare shares jumped as much as 10% in Shenzhen trading. Meanwhile shares of iPhone maker Apple Inc. fell as much as 1.9% in New York. The report says mass production is expected in 2028, although "specifications and suppliers are expected to be finalized by late 2026" or the first quarter of 2027, Kuo said. Representatives from Qualcomm, OpenAI, MediaTek and Luxshare did not immediately respond to Bloomberg News requests for comment. Kuo's report comes at a time of uncertain prospects for Qualcomm, which has seen its shares struggle this year. While the stock had jumped about 20% off a recent low through Friday's close, it remains down 13% in 2026, making it by far the the worst performer in the Philadelphia semiconductor index, which has gained for a record 18 straight days and is up nearly 50% this year. Qualcomm's weakness has come in the face of soaring demand for memory from the build out of AI data centers, which has left makers of consumer electronics devices with limited supply and higher prices. The company is scheduled to report its second-quarter results after the market close on Wednesday.

Qualcomm surges on report of OpenAI tie-up for AI smartphone processors

April 27 (Reuters) - Qualcomm (QCOM.O), opens new tab shares jumped 13% in premarket trading on Monday after an analyst said OpenAI was working with the chip designer and Taiwan's MediaTek (2454.TW), opens new tab to develop smartphone processors. Qualcomm and MediaTek are co-development partners for an AI-first smartphone that the ChatGPT creator is planning, with mass production likely in 2028, TF International Securities analyst Ming-Chi Kuo said in a post on social media platform X. China's Luxshare (002475.SZ), opens new tab, an Apple (AAPL.O), opens new tab supplier, is the exclusive system design and manufacturing partner for the device, according to Kuo, who is ⁠based in Taiwan and known for his accurate predictions on Apple's products. The companies did not immediately respond to requests for comment. OpenAI has been exploring consumer AI devices for years and last May acquired Jony Ive's startup io Products for $6.5 billion, tapping the former Apple designer to lead the efforts. But media reports have indicated that the planned device would not be a smartphone. Altman told employees it would be a "third core device" alongside phones and laptops, the Wall Street Journal reported last year. The ⁠loss-making startup has also pulled back from side projects to focus on coding tools for businesses - one of the few AI areas with clear commercial traction. Launching a smartphone would pit OpenAI directly against deep-pocketed rivals Apple and Samsung, which together command about a 40% ⁠share of the global market for the device. It would also add to signs that the smartphone would likely retain its central role in people's lives in the AI era, after ⁠Reuters reported last month that Amazon (AMZN.O), opens new tab was planning a fresh push into the handset market. Apple shares (AAPL.O), opens new tab were down 1.7%. The company last week named long-time hardware ⁠chief John Ternus as CEO, a sign that devices would continue to play a central role in its business even as it looks to catch up in offering AI to users. Reporting by Deborah Sophia in Bengaluru; Editing by Arun Koyyur Our Standards: The Thomson Reuters Trust Principles., opens new tab

Qualcomm jumps 12% on report it's partnering with OpenAI on smartphone AI chip

Qualcomm is one of the biggest semiconductor companies making chipsets. Qualcomm shares rose in premarket trading Monday following reports that it's partnering with OpenAI to create smartphone processing chips to advance the AI firm's hardware ambitions. The U.S. smartphone chipmaker is set to work alongside Taiwanese semiconductor firm MediaTek to develop the chip for OpenAI, with Chinese manufacturer Luxshare co-designing and building the device, Ming-Chi Kuo, an analyst at TF International Securities, said on X on Monday. Mass production of the device is expected in 2028, according to Kuo. Qualcomm was last up 12% in premarket trading. The stock is down 13% so far this year.

Qualcomm stock is soaring today as rumblings of an OpenAI smartphone deal emerge. Here's what's happening

Shares in Qualcomm Incorporated (Nasdaq: QCOM) are surging in premarket trading this morning after reports emerged that the company may be on the cusp of a deal with artificial intelligence giant OpenAI. The deal would see Qualcomm CPUs powering a potential OpenAI smartphone -- and would be a further sign that AI may shift from being primarily GPU-powered to CPU-powered. Here's what you need to know. Currently, the most important computing component underpinning the AI era is the Graphics Processing Unit (GPU). Traditionally, this was a dedicated processor designed to render 3D graphics and video, and it was especially critical in the gaming sector of the computer industry. But in the AI era, the processing power of GPUs has made them a perfect tool for high-performance tasks like training and running large language models (LLMs), which are the backbone of chatbots.

Qualcomm surges on report of OpenAI tie-up for AI smartphone processors

Qualcomm shares surged on news of a potential OpenAI smartphone processor collaboration. OpenAI is reportedly working with Qualcomm and MediaTek on an AI-focused device. Mass production is anticipated around 2028. This move signals a continued central role for smartphones in the AI era, despite other tech giants also focusing on AI integration. Qualcomm shares jumped 13% in premarket trading on Monday after an analyst said OpenAI was working with the chip designer and Taiwan's MediaTek to develop smartphone processors. Qualcomm and MediaTek are co-development partners for an AI-first smartphone that the ChatGPT creator is planning, with mass production likely in 2028, TF International Securities analyst Ming-Chi Kuo ⁠said in ⁠a post on social media platform X. China's Luxshare, an Apple supplier, is the exclusive system design and manufacturing partner for the device, according to Kuo, who is based in Taiwan and known for his accurate predictions on Apple's products. The companies did not immediately respond to requests for comment. OpenAI has been exploring consumer AI devices for years and last May ⁠acquired Jony Ive's startup io Products for $6.5 billion, tapping the former Apple designer to lead the efforts. But media reports have indicated that ⁠the planned device would not be a smartphone. Altman told employees it would be a "third core device" alongside phones and laptops, the Wall Street Journal reported last year. The loss-making startup has also pulled back from side projects to focus on coding tools for businesses - one of the few AI areas with clear commercial traction. Launching a smartphone would pit OpenAI directly against deep-pocketed rivals Apple and Samsung, which together command about a 40% share of the global market for the device. It would also add to signs that the smartphone would ⁠likely retain its central role in people's lives in the AI era, after Reuters reported last month that Amazon was planning a fresh push into the handset market. Apple shares were down 1.7%. The company last week named long-time hardware chief John Ternus as CEO, a sign that devices would continue to play a central role in its business even as it looks to catch up in offering AI to users.

Qualcomm lifted by speculation of OpenAI partnership

Qualcomm shares rose approximately 9% in pre-market trading on Monday, bolstered by reports from TF International Securities analyst Ming-Chi Kuo suggesting a partnership with OpenAI to develop chips for AI-centric smartphones. According to these reports, the group could collaborate with MediaTek on processor design, while Luxshare would handle device manufacturing. Mass production is reportedly targeted for 2028, although none of the companies involved have officially confirmed the project. This potential partnership would align with OpenAI's strategy to develop a device centered on AI agents, capable of delivering an integrated experience through control over both hardware and the operating system. The smartphone appears to be the preferred medium for such applications due to its ability to continuously collect data, a key element for the operation of real-time artificial intelligence systems. For Qualcomm, a dominant player in mobile processors with its Snapdragon chips, this prospect would strengthen its positioning in next-generation technologies. OpenAI is simultaneously pursuing its hardware ambitions, notably following the acquisition of a startup founded by Jony Ive, Apple's former chief design officer. This reportedly aims to build a comprehensive ecosystem combining devices, services and subscriptions to permanently embed artificial intelligence into daily use.