SPX3,825.33+39.95 1.06%
DIA310.85+3.03 0.98%
IXIC11,127.85+99.11 0.90%

Qualcomm Readying Chip to Take On Apple's Newly-Unveiled M2 Processor, Says Analyst

Wireless telecom chipmaker Qualcomm, Inc. (NASDAQ: QCOM) is gearing up to take on Apple, Inc. (NASDAQ: APPL) with an improved chip.

Benzinga · 06/09/2022 07:21

Wireless telecom chipmaker Qualcomm, Inc. (NASDAQ:QCOM) is gearing up to take on Apple, Inc. (NASDAQ:APPL) with an improved chip.

Qualcomm is working on a chip, named Hamoa, which is based on 4-nm processor-node technology, analyst Ming-Chi Kuo of TFI International Securities said on Twitter.

This, according to the analyst, would be pitched against Apple's second-generation M2 chips, which the company announced at its Worldwide Developers Conference on Monday. The mobile processor is powerful enough to power high-performance PCs.

Apple's M2 chips are based on 5nm processor-node technology and it is used in the company's new MacBook Pros.

Kuo expects Qualcomm's Hamoa chip to enter mass production in the third quarter of 2023.

Qualcomm, however, has a tall order before it. Before taking on Apple, it has to convince PC brands to use its chips instead of x86 processors, Kuo said.

Related Link: Why This Apple Analyst Recommends Avoiding Qualcomm And Android-Related Stocks

Kuo's comments are in conformance with the views reportedly expressed by Qualcomm CEO Cristiano Amon in an interview with CNET. Qualcomm is already supplying its Snapdragon line of mobile processors for Microsoft Corporation's (NASDAQ:MSFT) Surface Pro X laptop.

Amon reportedly told CNET that Qualcomm will use chips designed by Nuvia, which it acquired in March 2021.

Qualcomm closed Wednesday's session 2.06% lower at $138.96, according to Benzinga Pro data.

Photo courtesy: Apple