Qualcomm Targets Data Center CPUs With Nvidia Integration – Eyes Market Dominated by Intel, AMD

Qualcomm (QCOM) announced Monday that it is reentering the data center CPU market, with processors engineered to work in tandem with Nvidia’s AI chips.

Its return to the data center CPU market will put it head-to-head with Intel (INTC) and Advanced Micro Devices (AMD), which currently dominate the CPU market. Even Nvidia makes its own “Grace” CPU in collaboration with Arm Holdings. 

The new CPUs will use Nvidia technology to enable fast, seamless communication with Nvidia GPUs, which are dominant in AI workloads. 

“I think we see a lot of growth happening in this space for decades to come, and we have some technology that can add real value,” Cristiano Amon, CEO of Qualcomm, told CNBC in an interview on Monday. “So I think we have a very disruptive CPU.”

Amon stated that the company will announce the CPU roadmap and the timing of its release “very soon,” without offering specifics.

“As long as ... we can build a great product, we can bring innovation, and we can add value with some disruptive technology, there’s going to be room for Qualcomm, especially in the data center,” Amon said. ”[It] is a very large addressable market that will that will see a lot of investment for decades to come.”

Qualcomm quit the data center market in 2018 after a failed effort to build Arm servers.

Qualcomm’s revival of efforts comes after the company acquired a team of ex-Apple chip designers in 2021 when it bought Nuvia from Arm Holdings – an acquisition that has been embroiled in legal controversy. 

After this, the company known for its Snapdragon chips used to power smartphones, reportedly began holding discussions with Meta about a data center CPU in February this year. 

Qualcomm also announced on Monday that it is teaming with Advantech to integrate its AI and connectivity technology into Advantech’s edge computing platforms.

Qualcomm's Dragonwing technology, introduced in 2025, is designed to deliver high AI performance and low latency at the edge, according to the company. Advantech will incorporate several Dragonwing processors (QCS6490, IQ8, and IQ9) into its products, such as AI cameras, smart panels, embedded modules, and robotic controllers.

Qualcomm’s stock traded flat pre-market. The shares are down 1.6% this year, and have fallen more than 21% over the past 12 months. 

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