Qualcomm stock spikes on a report that it could make chips for an OpenAI smartphone

• Qualcomm stock surged on Monday.
• The chipmaker was boosted by an analyst report that said it is partnering with OpenAI on a smartphone.
• Neither company has confirmed the report.

The move: Qualcomm stock kicked off the week by surging as much as 8%, extending Friday's 11% gain. The stock is down 7% year to date.

Why: Qualcomm's Monday momentum was sparked by a post from Ming-Chi Kuo, a widely followed tech analyst at China-based TF International Securities. Kuo wrote that Qualcomm is partnering with OpenAI to help power the company's new smartphones .

"OpenAI is working with MediaTek and Qualcomm to develop smartphone processors, with Luxshare as the exclusive system co-design and manufacturing partner. Mass production is expected in 2028."

Kuo made these statements in an X article on Sunday evening. They did not cite any sources or name any points of reference. Neither company has issued any statement regarding the partnership or smartphone claims.

While OpenAI has indicated its ambitions to break into hardware before, the company hasn't been focused on smartphones. The company recently revealed that it wouldn't be releasing the device that legendary Apple designer Jony Ive has been working on until February 2028.

Still, Kuo remains convinced that producing its own smartphone is the next logical step forward for OpenAI.

"The smartphone is the only device that captures the user's full real-time state, which is the most important input for real-time AI agent inference," the article stated. "Smartphones will remain the largest-scale device category for the foreseeable future."

What it means: Qualcomm has worked on hardware using OpenAI's tech before, including the Humane wearable AI Pin device. However, if Kuo's statements are true, it will represent a deeper partnership than any previous collaborations.

"MediaTek and Qualcomm are processor co-development partners and could benefit from long-term replacement demand," the analyst noted.

Qualcomm has struggled to keep pace with other chipmakers, even as the AI boom has catapulted companies in the space to new heights. Partnering with Open on a smartphone would likely be a turning point. However, Kuo's claims still remain unsubstantiated and neither company has responded to a request for comment.