Shares in Qualcomm Incorporated (Nasdaq: QCOM) are surging in premarket trading this morning after reports emerged that the company may be on the cusp of a deal with artificial intelligence giant OpenAI.
The deal would see Qualcomm CPUs powering a potential OpenAI smartphone—and would be a further sign that AI may shift from being primarily GPU-powered to CPU-powered. Here’s what you need to know.
Will the CPU replace the GPU in the AI space?
Currently, the most important computing component underpinning the AI era is the Graphics Processing Unit (GPU). Traditionally, this was a dedicated processor designed to render 3D graphics and video, and it was especially critical in the gaming sector of the computer industry.
But in the AI era, the processing power of GPUs has made them a perfect tool for high-performance tasks like training and running large language models (LLMs), which are the backbone of chatbots.
The importance of GPUs in AI development has made GPU king Nvidia the most valuable company on the planet.
But in the near future, the AI industry will go through a shift.
The role of CPUs is expected to become even more important in data centers, as CPUs become more advanced and capable. This is good news for CPU makers like Intel Corporation (Nasdaq: INTC), whose stock soared last week, driven primarily by data center and AI (DCAI) revenue growth.
This shift toward the growing importance of CPUs in the AI space is also likely to accelerate, as more advanced CPUs enable more AI models to run locally on personal devices like smartphones, freeing LLMs from the power-hungry GPUs packed into today’s data centers.
Once that happens, smartphone makers will likely be lining up to get their hands on the most capable AI CPUs on the market—and that is something Qualcomm may soon benefit heavily from.
OpenAI’s rumored smartphone may have a Qualcomm chip inside
For years, ChatGPT maker OpenAI has been rumored to be working on a physical device intended to be the primary way you interact with AI.
Some suggest this device might be screenless, taking the form factor of a pen or a pendant, but others suggest that OpenAI may instead just launch its own smartphone.
And now a report from respected TF International Securities analyst Ming-Chi Kuo seems to corroborate this. Writing in a post on X, Kuo says his latest industry checks have revealed that “OpenAI is working with MediaTek and Qualcomm to develop smartphone processors,” and he believes these chips are likely destined for an OpenAI phone.
The report from Kuo, who is known for his excellent track record of sniffing out the biggest plans of large tech giants—including Apple—through his supply-chain sources, is the main reason why Qualcomm stock is soaring today.
If Qualcomm will indeed be one of the major chip partners for a future OpenAI phone, the company’s coffers stand to benefit enormously.
Qualcomm stock surges after OpenAI report
As of this writing, QCOM stock is currently up more than 12.5% to $167.50 per share. The company’s stock price closed at $148.85 on Friday.
Relatedly, on Friday, QCOM stock surged more than 11% after Intel’s earnings report, suggesting the CPU was growing ever more important in the AI era.
It should be noted, however, that neither Qualcomm nor OpenAI has publicly commented on any CPU deal. Fast Company has reached out to both companies for comment.
Still, Kuo’s report seems to have excited investors.
As of Friday’s close, QCOM shares were still down nearly 13% year to date. But with today’s further stock price news driven by the OpenAI speculation, Qualcomm is very close to being back in the green, if today’s premarket jump holds.
Over the past 12 months, QCOM stock was up about 1% as of Friday’s closing price. Qualcomm is expected to announce its Q2 2026 earnings on Wednesday.
