Qualcomm (QCOM) Stock Jumps 11% on OpenAI Smartphone Chip Report

TLDR

• Qualcomm stock jumped over 11% in premarket trading Monday on reports of a partnership with OpenAI
• Analyst Ming-Chi Kuo says OpenAI is working with Qualcomm and MediaTek to develop smartphone processors
• Luxshare is expected to be the exclusive system co-design and manufacturing partner
• Mass production of the AI-focused smartphone is targeted for 2028
• Specs and suppliers are expected to be locked in by late 2026 or early Q1 2027

Qualcomm stock surged more than 11% in premarket trading on Monday after analyst Ming-Chi Kuo reported that OpenAI is working with Qualcomm and MediaTek to develop processors for an AI-focused smartphone.

QUALCOMM Incorporated, QCOM

Kuo, a TF International Securities analyst known for his supply chain accuracy, posted the findings on X. He said OpenAI selected Luxshare Precision Industry as the exclusive partner for system co-design and manufacturing.

Mass production is targeted for 2028. Specifications and suppliers are expected to be finalized by late 2026 or early Q1 2027.

He added that OpenAI’s strengths — its consumer brand, user data, and AI models — pair well with the already mature smartphone hardware supply chain.

What This Could Mean for Qualcomm

On the business side, Kuo suggested OpenAI may bundle subscriptions with hardware and build a new AI agent ecosystem with developers.

Both Qualcomm and MediaTek are listed as processor co-development partners. Kuo noted both companies could benefit from long-term replacement demand as device upgrade cycles accelerate.

He used MediaTek’s Google TPU Zebrafish chip as a reference point, noting a single chip’s revenue contribution is roughly equivalent to 30–40 AI agent smartphone processors. With the global high-end smartphone segment shipping around 300–400 million units per year, the replacement cycle could become a major growth driver.

Qualcomm’s stock was trading at $164.30 at 5:27 AM ET, up 10.38% in premarket. By later reports, gains reached as high as 11.12%.

Luxshare in Focus

Kuo also highlighted what this deal means for Luxshare. He noted it would be hard for the company to surpass Foxconn’s assembly position in Apple’s supply chain.

Monday’s premarket move follows a strong Friday session, where Qualcomm rose 11% as part of a broader semiconductor rally.

That Friday surge was partly driven by strong Q1 2026 results from Intel, which lifted sentiment across the chip sector.

OpenAI, Qualcomm, MediaTek, and Luxshare did not respond to requests for comment.

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