{"id":569943,"date":"2026-07-05T11:39:11","date_gmt":"2026-07-05T11:39:11","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/569943\/"},"modified":"2026-07-05T11:39:11","modified_gmt":"2026-07-05T11:39:11","slug":"this-ai-chip-stock-just-signed-massive-deals-with-3-hyperscalers-and-it-still-looks-like-a-great-buy-right-now-hint-not-nvidia-or-intel","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/569943\/","title":{"rendered":"This AI Chip Stock Just Signed Massive Deals With 3 Hyperscalers, and It Still Looks Like a Great Buy Right Now (Hint: Not Nvidia or Intel)"},"content":{"rendered":"\n

Ever since OpenAI<\/a> released ChatGPT in November 2022, the AI industry has been characterized by ever-growing demand for compute. That demand has taken several forms over the years. <\/p>\n

First, massive data centers required as many GPUs as they could find, leading to a boom in Nvidia<\/strong> (NASDAQ: NVDA) sales. Then, GPUs required more and more high-bandwidth memory. In the age of agentic AI, many developers see a growing need for CPUs, like those from Intel<\/strong> (NASDAQ: INTC). <\/p>\n

Missed Nvidia in 2009? This Rare Signal Is Flashing Again.<\/strong>\u00a0In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia.\u00a0For the first time in years, that same “Total Conviction” signal is flashing for a company 1\/100th the size of Nvidia.\u00a0Continue \u00bb<\/strong><\/a> <\/p>\n

One company is making the most of its opportunity, recently signing three massive deals with hyperscalers<\/a>. Qualcomm<\/strong> (NASDAQ: QCOM) expects to grow its data center chip business from practically nothing last year to $15 billion by 2029. And it’s off to a strong start. <\/p>\n

\"Rows<\/a> Image source: Getty Images. The AI chip company is taking a share of the data center market <\/p>\n

Qualcomm said it’s developing a custom silicon solution with a leading hyperscaler back in April and expects to start ramping it later this year. At its investor day last month, management said it now has two hyperscalers under contract for at least $1 billion, as well as a deal to start selling its next-generation CPUs designed for AI agents to Meta Platforms<\/strong> starting in the second half of 2028. Management now expects $5 billion in revenue from its data center business in fiscal 2027, growing to $15 billion by 2029. <\/p>\n

The opportunity in data center CPUs is massive relative to Qualcomm’s current business. Intel, for example, generated $5.1 billion in sales through its Data Center and AI segment last quarter and $17 billion over the past year. And it’s had a multiyear head start in the data center CPU space. <\/p>\n

Qualcomm expects the total addressable market to exceed $1 trillion across connectivity chips, custom silicon, AI accelerators, and CPUs, all of which it participates in or actively develops. And $15 billion is just 1.5% of that market, so it’s not a high bar. <\/p>\n

Qualcomm’s trailing-12-month revenue is $44.5 billion, suggesting a substantial growth opportunity for the business. It also sees opportunities to grow its device CPU business as demand for on-device AI increases. <\/p>\n

That said, it has to compete with Intel and, more recently, Nvidia on that front. While selling chips directly will yield a lower operating margin than licensing its technology through its legacy wireless chip business, management sees significant leverage as the business scales, which should produce very strong earnings growth over the next few years. <\/p>\n

Management sees EPS climbing to more than $18 by 2029. That represents 18% annualized growth from expectations for the current year. Meanwhile, the stock trades for less than 18 times forward earnings expectations, making it an excellent opportunity for investors right now. <\/p>\n

Should you buy stock in Qualcomm right now? <\/p>\n

Before you buy stock in\u00a0Qualcomm, consider this: <\/p>\n

The Motley Fool\u00a0Stock Advisor\u00a0analyst team just identified what they believe are the\u00a010 best stocks<\/strong><\/a>\u00a0for investors to buy now\u2026 and\u00a0Qualcomm\u00a0wasn’t one of them.\u00a0The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. <\/p>\n

Consider when\u00a0Netflix<\/strong>\u00a0made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you’d have $418,761<\/strong>!*\u00a0Or\u00a0when\u00a0Nvidia<\/strong>\u00a0made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation,\u00a0you’d have $1,195,804<\/strong>!* <\/p>\n

That performance is why people listen. With a track record of\u00a0beating the S&P 500 by 4x<\/strong>,\u00a0Stock Advisor\u00a0offers a distinct advantage. Don’t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built for the long haul. <\/p>\n

See the 10 stocks \u00bb<\/strong><\/a> <\/p>\n

*Stock Advisor returns as of July 5, 2026. <\/p>\n

Adam Levy<\/a> has positions in Meta Platforms and Qualcomm. The Motley Fool has positions in and recommends Intel, Meta Platforms, Nvidia, and Qualcomm. The Motley Fool has a disclosure policy<\/a>. <\/p>\n

This AI Chip Stock Just Signed Massive Deals With 3 Hyperscalers, and It Still Looks Like a Great Buy Right Now (Hint: Not Nvidia or Intel)<\/a> was originally published by The Motley Fool <\/p>\n","protected":false},"excerpt":{"rendered":"Ever since OpenAI released ChatGPT in November 2022, the AI industry has been characterized by ever-growing demand for…\n","protected":false},"author":2,"featured_media":569944,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[261],"tags":[291,289,290,92155,986,18,19,3572,17,3393,292,15567,82],"class_list":["post-569943","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-custom-silicon","tag-data-centers","tag-eire","tag-ie","tag-intel","tag-ireland","tag-nasdaq","tag-nvidia","tag-qualcomm","tag-technology"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/116867181212964628","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/569943","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=569943"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/569943\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/569944"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=569943"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=569943"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=569943"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}