Qualcomm and Intel are experiencing contrasting performance in the stock market due to their reliance on AI to improve their businesses. While both companies have faced challenges in their core markets, Qualcomm has seen a 19% gain in its stock while Intel has experienced a 23% decline. Qualcomm's success can be attributed to the expected growth in the smartphone market, as AI-enabled smartphones are predicted to have significant growth and account for 15% of the overall smartphone market. Qualcomm, a supplier to major smartphone OEMs such as Apple and Samsung, is well-positioned to capitalize on this growth. Counterpoint Research expects Qualcomm to capture over 80% of the generative AI smartphone market in the coming years. Additionally, Qualcomm is also targeting the AI PC market to further expand its business.

On the other hand, Intel's outlook has been less optimistic, with its revenue guidance well below expectations, and its foundry unit reporting substantial losses. Despite its $2 billion revenue pipeline from AI accelerators and efforts to support customer demand, it may not have a significant impact on Intel's overall revenue compared to its total estimated revenue for the year. Intel also faces tough competition from AMD in the market for AI PC processors. With AMD already claiming a significant market share, Intel could struggle to capitalize on the growing adoption of AI. Overall, Qualcomm shows more promise in capitalizing on the AI opportunity, with a higher market share expected and a more affordable valuation compared to Intel. Investors may consider buying Qualcomm stock before it potentially rises further in 2024.