Wall Street Rally Fueled by Qualcomm, Quantum Computing Stocks: Semiconductor Race Heats Up
Qualcomm Surge on Wall Street: A Shot Across the Bow in the AI Semiconductor Race?
On October 27, 2025, Wall Street witnessed a surge in semiconductor optimism, driven by a sharp rise in Qualcomm's stock price. The stock jumped as much as 20% intraday, capturing significant market attention. This surge is attributed to the announcement of Qualcomm's plans to launch next-generation AI accelerator chips, fueling hopes that it can challenge Nvidia and AMD in the burgeoning AI semiconductor market. With the planned releases of the AI200 in 2026 and the AI250 in 2027, Qualcomm is signaling its serious intent to compete in this space. The company further showcased its technological prowess with the 'Snapdragon 8 Gen 3' application processor (AP), demonstrating the ability to implement generative AI on smartphones without requiring an internet connection.
Qualcomm's moves are viewed as part of a broader effort to expand the AI ecosystem. The company currently operates the 'Qualcomm AI Hub,' fostering a community of AI developers. Furthermore, to counter Nvidia's dominance, Qualcomm is collaborating with Google and Intel on the 'oneAPI' open-source project, aiming to diversify the AI software ecosystem. The 'oneAPI' project, spearheaded by the UXL Foundation – a consortium formed by Qualcomm, Google, and Intel last year – aims to enable developers to easily create and deploy AI models across various hardware platforms. Vinesh Sukumar, Head of AI and Machine Learning at Qualcomm, stated, "We are actually showing developers a way to move away from the Nvidia platform," clearly signaling a challenge to Nvidia.
In other news, Qualcomm has secured Humane, an AI company backed by Saudi Arabia's Public Investment Fund, as its first customer, signaling a push into the Middle Eastern market. Qualcomm and Humane have signed a memorandum of understanding (MOU) to build advanced AI data centers. Cristiano Amon, Qualcomm's CEO, stated, "We will help establish a technology ecosystem to accelerate Saudi Arabia's AI ambitions to become a hub for intelligent computing by establishing advanced AI data centers powered by the industry's best inference solutions." The fact that Amon accompanied former U.S. President Donald Trump on his state visit to the Middle East in May suggests strong U.S. government support for Qualcomm's efforts in the region.
However, the overall New York Stock Exchange (NYSE) ended the day on a mixed note. On October 27, 2025 (local time), the Dow Jones Industrial Average closed at 46,590.41, down 334.33 points (0.71%) from the previous session. The S&P 500 also closed lower at 6,699.40, down 35.95 points (0.53%), and the Nasdaq Composite Index finished at 22,740.40, marking a decline of 213.27 points (0.93%). This downturn is attributed to concerns about the U.S. national debt exceeding $38 trillion and U.S. Treasury Secretary Scott Bessent's confirmation that the U.S. is considering broad export restrictions on products containing U.S. software, which dampened investor sentiment. Moreover, the renewed uncertainty surrounding U.S.-China trade relations, as Chinese Vice Premier He Lifeng began talks with U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamison Greer, weighed on the market.
Amid these market conditions, Qualcomm's stock surge can be interpreted as a reflection of investors' strong interest in the AI semiconductor market. It remains to be seen whether Qualcomm can emerge as a significant competitor in the AI semiconductor market currently dominated by Nvidia and AMD. Meanwhile, Tesla announced its third-quarter revenue of $28.1 billion and EPS of $0.50. South Korean President Lee Jae-myung has consistently emphasized policy support to strengthen the competitiveness of the domestic semiconductor industry, and U.S. President Donald Trump is also actively supporting efforts to secure U.S. technological competitiveness. According to data released by the U.S. Treasury Department on October 21, the U.S. national debt surpassed $38 trillion, following a previous mark of $37 trillion in August, raising concerns about fiscal soundness. On October 27, 2025 (local time), the Dow Jones Industrial Average closed at 47,544.59, the S&P 500 Index closed at 6,875.16, and the Nasdaq Composite Index closed at 23,637.46 on the New York Stock Exchange.
