Qualcomm’s (QCOM) new chip could help boost competition between Android and Apple’s (AAPL) iOS.
The company has debuted the Snapdragon 8 Elite mobile platform powered by a new 2nd generation Oryon CPU called .[f]”Testing the World’s Mobile CPUs,” he said at the Snapdragon Summit on Monday. Qualcomm said the new Snapdragon platform can support multimodal generative artificial intelligence capabilities.
Qualcomm says the new Oryon CPU is 45% faster and 44% more power efficient. Qualcomm primarily designs chips for mobile devices with the Android operating system. As the iPhone maker rolls out Apple intelligence capabilities, the new Snapdragon 8 platform could help smartphone companies compete with Apple on the AI frontier. Apple also has a deal with ChatGPT maker OpenAI to integrate ChatGPT-4o into the new iOS 18, iPadOS 18, and macOS Sequoia.
Meanwhile, the Wall Street Journal (NWSA) reported in September that Qualcomm has expressed interest in acquiring Intel (INTC) in a deal worth $90 billion. According to Bloomberg, alternative asset manager Apollo Global Management (APO) also proposed an equity-like investment in Intel worth up to $5 billion.
Qualcomm may wait until after next month’s U.S. presidential election to decide on acquiring Intel, Bloomberg reported, citing unnamed people familiar with the matter. Qualcomm wants to see who wins the election before making a deal, considering potential implications for antitrust laws and tensions with China, people told Bloomberg. That’s what it means.
Analysts at Bank of America Global Research (BAC) say Qualcomm could potentially expand its size by acquiring Intel and gain leadership in the mobile, PC, and server core processor unit (CPU) markets. In a memo that could be won and given access to Intel’s vast chip manufacturing facility. They added that Qualcomm’s $33 billion in chip revenue and Intel’s $52 billion in revenue would make Qualcomm the world’s largest semiconductor company.
But analysts said the regulatory and financial challenges of a potential deal would outweigh those benefits. They are skeptical of the proposed takeover and believe the confusion surrounding the deal could benefit Intel’s rivals.
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