Qualcomm Explores AI Data Center Opportunity Amid Nvidia Competition

Qualcomm is positioning itself as a potential compute supplier for Abu Dhabi's 5-gigawatt AI campus project, marking its second attempt to challenge Nvidia's data center dominance. The semiconductor firm's previous Centriq server chips failed in 2018, but improved financials now support renewed ambitions.

Nvidia's stock performance has dramatically outpaced Qualcomm since April, coinciding with market turbulence following Trump-era tariff announcements. While Qualcomm remains primarily known for wireless communications, this data center push could diversify its $170 billion market cap business.

The AI infrastructure race is heating up globally, with Middle Eastern sovereign wealth funds aggressively investing in alternatives to Western tech providers. Qualcomm's cash reserves and licensing revenue provide a stronger foundation for this venture compared to its earlier failed attempt.