Can the Snapdragon X2 Elite PC Chip Be a Trump Card for Qualcomm?

Qualcomm Incorporated QCOM recently launched two AI chips for Windows PCs that are likely to redefine the concept of multitasking across resource-intensive workloads. The newest entrants in the Snapdragon X Series are Snapdragon X2 Elite and Snapdragon X2 Elite Extreme – the latter being the advanced edition of the former. Boasting multi-day battery life and groundbreaking AI capabilities, the chips are adept at tackling agentic AI experiences, computationally intense data analytics, professional media editing and scientific research.

Leveraging the best-in-class 3rd Gen Qualcomm Oryon CPU, the Snapdragon X2 Elite enables powerful and efficient multitasking for improved productivity with up to 31% faster performance at ISO power and up to 43% lower power consumption than the previous generation. It is designed to handle Copilot+ and concurrent AI experiences with a 64-bit NPU architecture with increased memory access for the latest AI models. The Snapdragon X2 Elite Extreme offers up to 75% faster CPU performance than competitors and is primarily intended for “ultra-premium” devices with more aggressive performance targets.

The Snapdragon X2 Elite Extreme uses a 192-bit memory interface for a higher bandwidth of 228 GB/s, while the Snapdragon X2 Elite uses a 128-bit memory interface in standard variants for a bandwidth of 152 GB/s. The Snapdragon X2 Elite Extreme features a boost frequency of 5 GHz for single-core compared with 4.7 GHz for the Snapdragon X2 Elite, enabling higher boost clocks and better throughput for heavy workloads.

Some Other Tech Firms Focusing on AI Chips

Intel Corporation INTC is investing to expand its manufacturing capacity to accelerate its IDM 2.0 (Integrated Device Manufacturing) strategy. The company is taking various decisions to gain a firmer footing in the expansive AI sector. Its latest Xeon 6 processors with Performance-cores (P-Cores) can support large AI workloads across diverse sectors. With industry-leading capabilities in AI processing, the Xeon 6 family delivers the industry’s best CPU for AI at a lower total cost of ownership. Intel's innovative AI solutions are likely to benefit the broader semiconductor ecosystem by driving down costs, improving performance and fostering an open, scalable AI environment. 

NVIDIA Corporation NVDA is rapidly gaining traction in enterprise AI, expanding its market beyond cloud providers. Major companies across industries are integrating NVIDIA’s AI platforms to automate workflows, enhance productivity and improve decision-making. The company’s DGX Cloud AI infrastructure, which allows enterprises to train and deploy AI models at scale, has seen increased adoption. The expansion of CUDA software and AI frameworks strengthens NVIDIA’s ecosystem, making it the preferred choice for enterprises developing AI applications. With AI adoption expected to accelerate in 2025 and beyond, NVIDIA’s software and AI cloud solutions are a significant revenue driver.

QCOM’s Price Performance, Valuation and Estimates

Qualcomm shares have gained 0.5% over the past year compared with the industry’s growth of 47.2%.

Going by the price/earnings ratio, the company's shares currently trade at 14.61 forward earnings, lower than 36.51 for the industry. 

Earnings estimates for 2025 have increased 1.2% to $11.89 per share over the past 60 days, while the same for 2026 has moved up 0.4% to $11.88.

Qualcomm currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 

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This article originally published on Zacks Investment Research (zacks.com).

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