Qualcomm Inc. (NASDAQ: QCOM) announced the introduction of two new high-end processors, the Snapdragon 8 Elite Gen 6 and the Snapdragon 8 Elite Extreme Gen 6, at its annual Snapdragon Summit. The company is positioning these chips as AI-first solutions designed to run artificial intelligence tasks directly on devices.
The new chips feature sensing hubs capable of running models with up to 200 million parameters. Qualcomm stated that phones utilizing this technology can run a personal scribe, distinguish between speakers, and build memory from user activity to provide task suggestions. Additionally, the chips support a complete voice-in, voice-out AI agent directly on the device. The Extreme version is capable of locally running a 30-billion-parameter mixture-of-experts model, while the standard Gen 6 includes a new accelerator designed to run AI models more efficiently.
Qualcomm is positioning its latest processors against Apple Inc.’s (NASDAQ: AAPL) A20 Pro, which powers the iPhone 18 Pro lineup. The company is using Taiwan Semiconductor Manufacturing Co. Ltd.’s (NYSE: TSM) most advanced manufacturing technology for the chips, putting Qualcomm and Apple on increasingly similar footing in the underlying chip production process. The Extreme chip adds higher-end camera features, including 8K video at 60 frames per second and 4K video at 240 frames per second. Both chips can also use AI to boost vocals and reduce background noise during calls.
Motorola announced that its Signature 27 smartphone will use the Snapdragon 8 Elite Extreme Gen 6, with availability expected this year. The launch comes as higher memory prices raise smartphone costs and pressure demand. Counterpoint expects global smartphone shipments to decline 14% this year. For Qualcomm, the strategy increasingly centers on powering the most expensive, AI-focused Android smartphones.
Regarding the company's stock, Qualcomm shares were down 0.39% at $197.49 in premarket trading on Wednesday. The stock is 12.2% above its 20-day simple moving average of $175.93 and 16.9% above its 50-day SMA of $168.91. Qualcomm carries a Hold consensus rating, with an average price forecast of $196.95.
