Amid the rise of artificial intelligence (AI), Nvidia has emerged as one of the premier stocks. Not only has it developed a technical lead in AI chips, but its chips support the functions of other AI companies, making it all the more essential.

Still, that focus may have induced investors to ignore other AI chip stocks, and one that may deserve more attention is Qualcomm (NASDAQ: QCOM). The leading designer of smartphone chipsets has brought AI innovation to the smartphone, as well as products such as IoT and automotive applications and, more recently, to the personal computer. Given such innovations, investors may want to give more attention to this stock before other prospective buyers take notice.

As the leading smartphone chipset company in the high-end market, Qualcomm has wholeheartedly embraced AI. The Snapdragon 8 Gen 3 chipset has attracted strong demand, particularly in China. CFO Akash Palkhiwala said on the fiscal Q2 2024 earnings call that in the Chinese market, its smartphone sales increased by more than 40% yearly, likely due to these devices' generative AI capabilities.

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Source Fool.com