Qualcomm Incorporated secured a deal to supply custom artificial intelligence chips to TikTok parent ByteDance. The agreement involves the delivery of millions of application-specific integrated circuits (ASICs) for ByteDance's AI data centers. This partnership marks a significant expansion for Qualcomm beyond its traditional mobile processor market.
Qualcomm shares climbed over 4% following the announcement. The stock reached a new intraday record high. Shares reported peak gains of 8.3%.
The deal validates Qualcomm's strategy to compete in the high-growth AI infrastructure sector. ByteDance represents one of the first major customers for Qualcomm's dedicated AI hardware.