Qualcomm in Talks to Provide Chip Design Services to ByteDance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: Newsfilter
- Market Dependency Shift: Qualcomm is in talks with ByteDance to provide chip design services, aiming to reduce its reliance on the smartphone market, its largest revenue source; if successful, ByteDance would become an early customer of Qualcomm's chip design services.
- Technological Collaboration Potential: The discussions involve designing custom chips for ByteDance, partially based on technology from AlphaWave Semi, a high-speed connectivity specialist acquired by Qualcomm last year, which could enhance Qualcomm's competitiveness in the data center chip market.
- Market Environment Challenges: Despite increasing friction between the U.S. and China over AI chips, U.S. tech firms remain eager to collaborate with Chinese companies, and Qualcomm's negotiations indicate its pursuit of new growth opportunities amid a significant decline in global smartphone shipments.
- Future Production Plans: The discussions include designing video processing units (VPUs) with plans to start mass production by the end of the year, which could open new market avenues for Qualcomm while potentially impacting ByteDance's AI chip development efforts.
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Analyst Views on QCOM
Wall Street analysts forecast QCOM stock price to fall
16 Analyst Rating
10 Buy
5 Hold
1 Sell
Moderate Buy
Current: 221.900
Low
165.00
Averages
197.14
High
225.00
Current: 221.900
Low
165.00
Averages
197.14
High
225.00
About QCOM
Qualcomm Incorporated is engaged in the development and commercialization of foundational technologies for the wireless industry, including third generation (3G), fourth generation (4G) and fifth generation (5G) wireless connectivity, and high-performance and low-power computing, including on-device artificial intelligence. Its segments include Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL) and Qualcomm Strategic Initiatives. QCT develops and supplies integrated circuits and system software based on 3G/4G/5G and other technologies, including radio frequency front-end, digital cockpit and advanced driver assistance and automated driving, Internet of things including consumer electronic devices, industrial devices and edge networking products. QTL grants licenses or otherwise provides rights to use portions of its intellectual property portfolio that includes certain patent rights essential to and/or useful in the manufacture and sale of certain wireless products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Dependency Shift: Qualcomm is in talks with ByteDance to provide chip design services, aiming to reduce its reliance on the smartphone market, its largest revenue source; if successful, ByteDance would become an early customer of Qualcomm's chip design services.
- Technological Collaboration Potential: The discussions involve designing custom chips for ByteDance, partially based on technology from AlphaWave Semi, a high-speed connectivity specialist acquired by Qualcomm last year, which could enhance Qualcomm's competitiveness in the data center chip market.
- Market Environment Challenges: Despite increasing friction between the U.S. and China over AI chips, U.S. tech firms remain eager to collaborate with Chinese companies, and Qualcomm's negotiations indicate its pursuit of new growth opportunities amid a significant decline in global smartphone shipments.
- Future Production Plans: The discussions include designing video processing units (VPUs) with plans to start mass production by the end of the year, which could open new market avenues for Qualcomm while potentially impacting ByteDance's AI chip development efforts.
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- Market Dependency Shift: Qualcomm is in talks with ByteDance to provide chip design services, aiming to reduce its reliance on the smartphone market, its largest revenue source; if successful, ByteDance would become an early customer of Qualcomm's chip design services.
- Technological Collaboration Potential: The discussions involve designing custom chips for ByteDance, partially based on technology from AlphaWave Semi, a high-speed connectivity specialist acquired by Qualcomm last year, which could enhance Qualcomm's competitiveness in the data center chip market.
- Market Environment Challenges: Despite increasing friction between the U.S. and China over AI chips, U.S. tech firms remain eager to collaborate with Chinese companies, and Qualcomm's negotiations indicate its pursuit of new growth opportunities amid a significant decline in global smartphone shipments.
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- Japanese Tech Stocks Follow Suit: Japan's technology sector also experienced gains, with Advantest rising 0.6%, SoftBank Group up 1.5%, and laser equipment manufacturer Lasertec increasing by 0.3%, demonstrating a broader recovery trend in regional tech stocks that enhances market optimism.
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