Qualcomm shares surge on reports of OpenAI smartphone partnership

(Sharecast News) - Qualcomm's stock jumped in pre-market trade on Wall Street after reports that the computing and semiconductor giant is working with ChatGPT maker OpenAI on a new AI-powered consumer device.

According to Reuters, OpenAI is developing smartphone processors with Qualcomm and MediaTek on a potential AI-driven smartphone, which could enter mass production in 2028.

The publication cited an X post from TF International Securities analyst Ming-Chi Kuo.

By 1406 BST ahead of the opening bell, Qualcomm stock futures were up 8.4% at $161.72, rising as much as 14% earlier on.

While an OpenAI device has been rumoured for years, last year's $6.5bn acquisition of io Products, founded by former Apple chief design office Jony Ive, is thought to have accelerated efforts.

According to reports last year, however, OpenAI's planned device is being touted as a "third core device" to sit alongside a phone and laptop.

Apple shares were down 1.3% at $267.61 ahead of the opening bell.