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INTC vs. QCOM: Which Semiconductor Stock Is a Better Buy?
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Key Takeaways
Intel is expanding AI capabilities through collaborations with major OEMs and cloud players.
Qualcomm is advancing mobile chipsets while pushing into AI PCs and automotive segments.
Both companies face intensifying competition and shifting dynamics in global semiconductor markets.
Intel Corporation (INTC - Free Report) and Qualcomm Incorporated (QCOM - Free Report) are two major players in the semiconductor industry. Intel is focused on CPUs and foundry services, while Qualcomm leads in mobile chips and wireless technology, making them key players in the evolving AI and connectivity markets.
Growing AI proliferation across industries is driving demand for AI chips. AI data centers, advanced packaging, AI factories, IoT adoption, automotive use cases such as ADAS, industrial automation & robotics are propelling the semiconductor sector in several verticals. Silicon sovereignty, export controls, domestic production facilities and securing a stable supply chain for chips have become a strategic priority for major economies worldwide. These factors are reshaping the industry dynamics.
Both Qualcomm and Intel are steadily advancing their semiconductor portfolios to bolster their competitive edge. Let us analyze in depth the competitive strengths and weaknesses of the companies to understand who is in a better position to maximize gains from the emerging market trends.
The Case for Intel
Intel has been taking several initiatives to gain a strong foothold in the expansive AI sector. The company has been closely collaborating with major original equipment manufacturers such as HP, Dell, Lenovo and Samsung to develop leading-edge AI chips. The company expanded its strategic collaboration with Microsoft. Leveraging its complementary capabilities, the organization aims to launch a broad set of Intel Core Ultra 200V series Copilot+ PCs for commercial customers. Per a report from Precedence Research, the worldwide AI market is projected to expand from $757.6 billion in 2025 to $4.21 trillion in 2035 with a compound annual growth rate of 18.73%. With growing prowess in the AI PC domain, Intel is well-positioned to capitalize on this market trend.
Recently, Intel also expanded its multiyear collaboration with Alphabet Inc. (GOOGL - Free Report) to develop next-gen AI infrastructure. The key takeaway of the deepening partnership is growing usage of Intel Xeon processors for AI training coordination, Inference workloads and general cloud computing. Intel and Google will work to codevelop custom ASIC-based Infrastructure Processing Units (IPUs). These IPUs offload tasks such as networking, storage and security functions from host CPUs. This results in greater system efficiency, better utilization of resources and predictable performance across hyperscalers’ complex AI environments.
AI systems are becoming too complex for single-chip solutions. Scaling AI demands a balanced system and proper workload distribution. With this strategic collaboration, Intel and Google are aiming to address those requirements. Intel is also collaborating with SombaNova to advance agentic AI development with Xeon 6. Intel has secured a $5 billion investment from NVIDIA Corporation (NVDA - Free Report) to jointly develop cutting-edge solutions that are likely to play an integral role in the evolution of the AI infrastructure ecosystem. Leveraging the core strengths of both firms, namely NVIDIA’s AI and accelerated computing and Intel’s CPU technologies and x86 ecosystem, the collaboration is expected to sow the seeds of innovation through the development of state-of-the-art custom data center and PC products. Such growing collaboration with industry leaders bodes well for long-term growth.
The Case for Qualcomm
Qualcomm is strengthening its foothold in the mobile chipsets market with innovative product launches. The company has strong parentship with major manufacturers such as Samsung, Apple, Xiaomi, Vivo and others. Its one of the most premium chips introduced in the first quarter of 2026 is Snapdragon 8 Elite Gen 5 Mobile Platform, which blends record-breaking speed and peak efficiency, effectively supporting multitasking, fast-paced gameplay and other demanding use cases.
Samsung has already deployed the chipset in its most advanced flagship S26 series smartphones. Apart from this, Qualcomm’s leading-edge smartphone lineup includes Snapdragon 7s Gen 3 Mobile Platform, Snapdragon 6 Gen 4 Mobile Platform and Snapdragon 4s Gen 2 Mobile Platform used in mid-range smartphones.
However, the company is facing aggressive competition in the mobile phone chipset market. Many of its major clients, such as Apple and Samsung, are pushing for in-house chip development. It has been facing challenges from low-cost chip manufacturers like MediaTek and Rockchip.
Qualcomm has been taking steps to reduce reliance on the mobile chipset vertical by venturing into emerging markets such as AI PCs and ADAS. The company inked agreements to acquire MovianAI to augment its efforts in fundamental AI research. Despite its initiative to ramp up its AI initiatives, Qualcomm has been facing tough competition from Intel in the AI PC market. Competition is also likely to come from rivals like Broadcom, AMD and NVIDIA.
How Do Zacks Estimates Compare for INTC & QCOM?
The Zacks Consensus Estimate for Intel’s 2026 sales implies a year-over-year increase of 1.76%, while estimates for EPS indicate growth of 11.9%. The EPS estimates of 2026 have remained unchanged, while estimates for 2027 have been trending northward, on average, over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Qualcomm’s fiscal 2026 sales suggests a year-over-year decline of 1.63%, while estimates for EPS imply a decrease of 8.23%. The EPS estimates have been trending southward over the past 60 days.
Image Source: Zacks Investment Research
Price Performance & Valuation of QCOM & INTC
Over the past year, Qualcomm has declined 8.4% against the industry’s growth of 65%. Intel has surged 212.7% over the same period.
Image Source: Zacks Investment Research
QCOM looks more attractive than INTC from a valuation standpoint. Going by the price/sales ratio, Intel shares currently trade at 5.64 forward sales, higher than 3.11 for Qualcomm.
Image Source: Zacks Investment Research
End Note
Intel carries a Zacks Rank #2 (Buy), while Qualcomm has a Zacks Rank #4 (Sell).
Both Intel and Qualcomm are working on advancing their portfolios to capitalize on the emerging AI infrastructure space. Qualcomm’s strong collaboration with major smartphone OEMs and expansion into the AI PC market are positive. However, the company is facing stiff competition in its core vertical of mobile chipsets. The growing trend of in-house chip manufacturing by its long-term client base will likely hinder margins in the long run.
With strategic collaborations with industry leaders such as Google, Microsoft and NVIDIA, Intel is well-positioned to gain from the growing AI PC market. The company boasts a strong client base that includes major PC makers such as HP, Dell, Lenovo and others. With AI inference, edge AI applications and development of IPUs, Intel is rapidly expanding its portfolio to support the end-to-end AI ecosystem. With a better price performance and Zacks Rank, Intel appears to be a better investment option at the moment.
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INTC vs. QCOM: Which Semiconductor Stock Is a Better Buy?
Key Takeaways
Intel Corporation (INTC - Free Report) and Qualcomm Incorporated (QCOM - Free Report) are two major players in the semiconductor industry. Intel is focused on CPUs and foundry services, while Qualcomm leads in mobile chips and wireless technology, making them key players in the evolving AI and connectivity markets.
Growing AI proliferation across industries is driving demand for AI chips. AI data centers, advanced packaging, AI factories, IoT adoption, automotive use cases such as ADAS, industrial automation & robotics are propelling the semiconductor sector in several verticals. Silicon sovereignty, export controls, domestic production facilities and securing a stable supply chain for chips have become a strategic priority for major economies worldwide. These factors are reshaping the industry dynamics.
Both Qualcomm and Intel are steadily advancing their semiconductor portfolios to bolster their competitive edge. Let us analyze in depth the competitive strengths and weaknesses of the companies to understand who is in a better position to maximize gains from the emerging market trends.
The Case for Intel
Intel has been taking several initiatives to gain a strong foothold in the expansive AI sector. The company has been closely collaborating with major original equipment manufacturers such as HP, Dell, Lenovo and Samsung to develop leading-edge AI chips. The company expanded its strategic collaboration with Microsoft. Leveraging its complementary capabilities, the organization aims to launch a broad set of Intel Core Ultra 200V series Copilot+ PCs for commercial customers. Per a report from Precedence Research, the worldwide AI market is projected to expand from $757.6 billion in 2025 to $4.21 trillion in 2035 with a compound annual growth rate of 18.73%. With growing prowess in the AI PC domain, Intel is well-positioned to capitalize on this market trend.
Recently, Intel also expanded its multiyear collaboration with Alphabet Inc. (GOOGL - Free Report) to develop next-gen AI infrastructure. The key takeaway of the deepening partnership is growing usage of Intel Xeon processors for AI training coordination, Inference workloads and general cloud computing. Intel and Google will work to codevelop custom ASIC-based Infrastructure Processing Units (IPUs). These IPUs offload tasks such as networking, storage and security functions from host CPUs. This results in greater system efficiency, better utilization of resources and predictable performance across hyperscalers’ complex AI environments.
AI systems are becoming too complex for single-chip solutions. Scaling AI demands a balanced system and proper workload distribution. With this strategic collaboration, Intel and Google are aiming to address those requirements. Intel is also collaborating with SombaNova to advance agentic AI development with Xeon 6. Intel has secured a $5 billion investment from NVIDIA Corporation (NVDA - Free Report) to jointly develop cutting-edge solutions that are likely to play an integral role in the evolution of the AI infrastructure ecosystem. Leveraging the core strengths of both firms, namely NVIDIA’s AI and accelerated computing and Intel’s CPU technologies and x86 ecosystem, the collaboration is expected to sow the seeds of innovation through the development of state-of-the-art custom data center and PC products. Such growing collaboration with industry leaders bodes well for long-term growth.
The Case for Qualcomm
Qualcomm is strengthening its foothold in the mobile chipsets market with innovative product launches. The company has strong parentship with major manufacturers such as Samsung, Apple, Xiaomi, Vivo and others. Its one of the most premium chips introduced in the first quarter of 2026 is Snapdragon 8 Elite Gen 5 Mobile Platform, which blends record-breaking speed and peak efficiency, effectively supporting multitasking, fast-paced gameplay and other demanding use cases.
Samsung has already deployed the chipset in its most advanced flagship S26 series smartphones. Apart from this, Qualcomm’s leading-edge smartphone lineup includes Snapdragon 7s Gen 3 Mobile Platform, Snapdragon 6 Gen 4 Mobile Platform and Snapdragon 4s Gen 2 Mobile Platform used in mid-range smartphones.
However, the company is facing aggressive competition in the mobile phone chipset market. Many of its major clients, such as Apple and Samsung, are pushing for in-house chip development. It has been facing challenges from low-cost chip manufacturers like MediaTek and Rockchip.
Qualcomm has been taking steps to reduce reliance on the mobile chipset vertical by venturing into emerging markets such as AI PCs and ADAS. The company inked agreements to acquire MovianAI to augment its efforts in fundamental AI research. Despite its initiative to ramp up its AI initiatives, Qualcomm has been facing tough competition from Intel in the AI PC market. Competition is also likely to come from rivals like Broadcom, AMD and NVIDIA.
How Do Zacks Estimates Compare for INTC & QCOM?
The Zacks Consensus Estimate for Intel’s 2026 sales implies a year-over-year increase of 1.76%, while estimates for EPS indicate growth of 11.9%. The EPS estimates of 2026 have remained unchanged, while estimates for 2027 have been trending northward, on average, over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Qualcomm’s fiscal 2026 sales suggests a year-over-year decline of 1.63%, while estimates for EPS imply a decrease of 8.23%. The EPS estimates have been trending southward over the past 60 days.
Image Source: Zacks Investment Research
Price Performance & Valuation of QCOM & INTC
Over the past year, Qualcomm has declined 8.4% against the industry’s growth of 65%. Intel has surged 212.7% over the same period.
Image Source: Zacks Investment Research
QCOM looks more attractive than INTC from a valuation standpoint. Going by the price/sales ratio, Intel shares currently trade at 5.64 forward sales, higher than 3.11 for Qualcomm.
Image Source: Zacks Investment Research
End Note
Intel carries a Zacks Rank #2 (Buy), while Qualcomm has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Both Intel and Qualcomm are working on advancing their portfolios to capitalize on the emerging AI infrastructure space. Qualcomm’s strong collaboration with major smartphone OEMs and expansion into the AI PC market are positive. However, the company is facing stiff competition in its core vertical of mobile chipsets. The growing trend of in-house chip manufacturing by its long-term client base will likely hinder margins in the long run.
With strategic collaborations with industry leaders such as Google, Microsoft and NVIDIA, Intel is well-positioned to gain from the growing AI PC market. The company boasts a strong client base that includes major PC makers such as HP, Dell, Lenovo and others. With AI inference, edge AI applications and development of IPUs, Intel is rapidly expanding its portfolio to support the end-to-end AI ecosystem. With a better price performance and Zacks Rank, Intel appears to be a better investment option at the moment.