Can Qualcomm rival Nvidia in AI growth?

Five years ago, Qualcomm was larger than Nvidia. However, in the last several years Nvidia rode the AI growth wave, becoming the third-largest corporation in the U.S. by market capitalization.

Qualcomm QCOM wants that kind of success in AI. It wants to be one of the leaders in the space. At the same time, investors today are looking for the smartest places to invest in AI for growth. So, which would be a better bet?

The answer is both, and others as well. AI is a fast changing and rapidly growing space. That is why you need to follow the growth wave. If you don’t, it could pass you by.

So, let’s take a look at Nvidia NVDA , Qualcomm and the entire, rapidly changing and growing AI industry for signs of what’s coming next.

The first question is around Nvidia. This was a smaller company with plenty of ups and downs. However, they have suddenly seen enormous growth in the past several years. Now other companies want to follow their lead in the world of AI. 

The question is can they continue to grow, or is AI a short-term opportunity? And if it is a longer-term growth opportunity, will growth continue on the same path or a new one? And will growth accelerate and expand or slow down?

Today we are in the early stages of the next AI growth wave

In my opinion, AI has begun a solid and rapid expansion cycle. AI has been an industry for decades but it has grown in fits and spurts. This time it appears to be becoming a solid and rapidly growing industry. 

That being said, I believe the AI growth track will continue to change going forward. What is hot today may be replaced time and time again going forward. So, AI investors need to keep up with the news, the key players and the changing industry.

I would say it looks like the AI growth wave is similar to the Internet, wireless service and the smartphone and tablet growth waves of the past.

Read more: AI growth beyond the ‘magnificent seven.’

Qualcomm’s SmartCities 5G infrastructure network/Qualcomm photo

Next Artificial Intelligence growth wave just beginning

Investors often look for companies when a segment starts its growth run. That being said, there are many companies in the AI space, both small and large. Even with Nvidia, the new industry powerhouse. It has grown in fits and spurts until it hit this most recent AI growth wave. 

Larger and more established companies are often more secure for the long run. Their years of success is often is full of both strong and weak times.

Qualcomm has been a powerhouse for several decades in wireless. They are a leader in the wireless and telecom space. They build networks, large and small, globally. AI is rapidly entering the wireless space. That being said, AI is a great source of growth for them. In recent years, Qualcomm has grown their AI business, but they have not grown as quickly as Nvidia.

What’s next for Qualcomm, Nvidia and others in the AI space?

So, what are the chances Qualcomm can catch up to Nvidia? Qualcomm does have a well-known and established brand. They are one of the leaders in the wireless space. And AI will play an increasingly important role in the wireless world moving forward.

That’s why I see Qualcomm growing into a leader in the AI space for wireless networks.

There are many unanswered questions, though. The direction of the industry will continue to shift. The challenge is to stay with the changing growth curve. That’s not always easy. Remember some of yesterday’s leaders like Motorola and Blackberry. They learned this lesson the hard way.