What's Going On With Qualcomm Stock Wednesday?

Qualcomm Inc QCOM stock is trading higher Wednesday after the chipmaker collaborated with Meta Platforms Inc META to optimize the execution of Meta's Llama 2 large language models directly on-device bypassing the sole use of cloud services.

The ability to run generative AI models like Llama 2 on devices like smartphones, PCs, VR/AR headsets, and vehicles allows developers to save on cloud costs and provide users with private, more reliable, personalized experiences.

So far, LLMs have primarily run in large server farms, on Nvidia Corp NVDA graphics processors, due to the technology's vast need for computational power and data, boosting Nvidia stock, up over 220% YTD. 

But the AI boom has primarily missed the companies behind leading-edge processors for phones and PCs, like Qualcomm. Its stock is up about 10% YTD, CNBC reports.

Qualcomm Technologies will likely make Llama 2-based AI implementation available on devices powered by Snapdragon from 2024 onwards. 

Qualcomm Technologies plans to make available on-device Llama 2-based AI implementations to enable the creation of new and exciting AI applications. 

These new on-device AI experiences, powered by Snapdragon, can work in areas without connectivity or even airplane mode.

Durga Malladi, senior vice president, and general manager, Qualcomm Technologies, said, "To effectively scale generative AI into the mainstream, AI will need to run on both the cloud and devices at the edge, such as smartphones, laptops, vehicles, and IoT devices."

Meta and Qualcomm Technologies have a longstanding history of working together to drive technology innovation and deliver the next generation of premium device experiences."

On Tuesday, Microsoft Corp MSFT disclosed expanding Meta AI partnership with Llama 2 on Azure and Windows.

Price Action: QCOM shares traded higher by 1.65% at $125.25 premarket on the last check Wednesday.

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