<p><strong>Nvidia</strong> <span class="ticker-mention inline-flex items-center font-bold">(NVDA <span class="ml-1 text-green-900">+0.44%</span>)</span> recently reported yet another round of amazing quarterly growth. Still riding the artificial intelligence (AI) adoption wave, its Q1 top line improved to $81.6 billion, up 85% year over year.</p>
<p>Lost in all the bullish noise, however, is that Nvidia isn't just an AI hardware company. Although data centers now account for more than 90% of its revenue, it still operates another division it (loosely) calls &#34;edge computing,&#34; which saw 29% year-over-year sales growth of its own last quarter.</p>
<p>And this has bullish implications for rival chipmaker <strong>Qualcomm</strong> <span class="ticker-mention inline-flex items-center font-bold">(QCOM <span class="ml-1 text-green-900">+5.78%</span>)</span>.</p>
<div class="image"><img alt="A person is riding in a connected, self-driving car." width="880" height="495" class="h-auto max-w-full rounded object-contain" src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84NzI0MzQvY29ubmVjdGVkLWNhci5qcGcmdz0zODQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84NzI0MzQvY29ubmVjdGVkLWNhci5qcGcmdz0zODQw"/>
<p>Image source: Getty Images.</p>
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<h2>What is edge computing?</h2>
<p>What's edge computing? It depends on who you ask. Broadly speaking, though, this is just computing work that's done somewhere between end users and data centers. Connected self-driving cars, smart utility meters, wearables, computer-optimized industrial factories, and smart homes are examples of edge computing, all of which require some level of unsupervised computer processing. If you've ever heard the term &#34;Internet of Things,&#34; edge computing is what was in mind when that term first started circulating a couple of decades ago, <em>before</em> the necessary technology was actually available.</p><div class="my-8 lg:hidden"><div id="foolcom_sidebar_top_container" class="pitch-container"><div class="min-h-[350px] rounded border border-gray-200 bg-white p-4 shadow-sm"><div class="mb-3 h-4 w-2/3 rounded bg-gray-200"></div><div class="mb-2 h-3 w-full rounded bg-gray-100"></div><div class="h-3 w-5/6 rounded bg-gray-100"></div></div></div></div>
<p>It should be noted that much of what Nvidia's edge computing arm does barely qualifies as such; it includes personal computers and video gaming in this mix. It also -- rightfully -- includes robotics, autonomous vehicles, and optimized factories.</p><div class="mb-8 flex justify-center"></div>
<p>Great. But what's this got to do with Qualcomm?</p><div><div id="in_line_article_pitch_container" class="pitch-container"><div class="my-32px p-40px relative mx-auto min-h-[660px] overflow-hidden rounded border border-gray-200 bg-gray-100 md:min-h-[300px]"><div class="border-b-1px pb-16px border-dotted border-gray-300"><div class="h-8 w-2/3 rounded bg-gray-200"></div></div><div class="mt-16px space-y-3"><div class="h-6 w-full rounded bg-gray-200"></div><div class="h-6 w-11/12 rounded bg-gray-200"></div><div class="h-12 w-48 rounded bg-gray-300"></div></div></div></div></div>
<h2>Qualcomm is taking aim at the exact same opportunity</h2>
<p>You may know it best as a mobile telecom name. But Qualcomm is an up-and-coming edge computing specialist, too, and arguably better positioned to capitalize on the opportunity.</p>
<p>You can't tell with just a passing look at last quarter's overall numbers. Dig deeper, though. Qualcomm manages a division it plainly calls Internet of Things, which produced 9% revenue growth to make up nearly 20% of the company's total business. And like Nvidia, Qualcomm's edge computing arm is working on automotive driver assistance, wearables, and factory optimization.</p><div class="my-8"><div class="relative w-full overflow-hidden rounded-lg bg-gray-100"><div class="relative"></div></div></div>
<p>It matters simply because there's so much growth potential ahead for this business. Precedence Research suggests the worldwide edge computing market is set to grow at an average annual pace of 27% through 2035, when it could be worth a little over $6 trillion per year.</p>
<section><div class="flex flex-wrap place-content-between"><div class="flex w-full place-items-center lg:w-3/4"><div class="p-[8px] text-center" style="width: 95px"><small><div class="flex flex-col items-center gap-2">Expand</div></small></div><div class="py-4 pr-4"><img alt="Qualcomm Stock Quote" width="64" height="64" class="w-full flex-none object-contain" src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL1FDT00ucG5nJnc9MTI4?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL1FDT00ucG5nJnc9MTI4"/></div><div class="pr-[16px]"><h2>NASDAQ: QCOM</h2><div class="text-md leading-[1] font-medium text-gray-800">Qualcomm</div></div></div><div class="flex w-full place-items-center lg:w-1/4"><div class="h-full w-5/6 px-4 py-2.5 lg:text-right bg-green-200"><div class="mb-[2px] text-[10px] text-gray-800">Today's Change</div><div class="mb-6 text-[18px] leading-none font-medium text-green-900">(5.78%) $13.23</div><div class="mb-[2px] text-[10px] text-gray-800">Current Price</div><div class="text-gray-1100 text-[18px] leading-none font-medium">$242.22</div></div><div class="flex h-full w-1/6 items-center justify-center py-2.5 bg-green-900"></div></div></div><div class="flex flex-wrap overflow-hidden transition-all duration-300 h-0"><div class="w-full border-t border-gray-300 p-2 lg:w-3/4 lg:border-r lg:p-6"></div><div class="w-full p-2 lg:w-1/4 lg:p-4"><h3>Key Data Points</h3><div class="text-gray-1100 my-[14px] grid grid-cols-2 text-sm"><div class="border-b border-gray-300 py-[14px] text-gray-800">Market Cap</div><div class="border-b border-gray-300 py-[14px] text-right font-bold">$241B</div><div class="border-b border-gray-300 py-[14px] text-gray-800">Day's Range</div><div class="border-b border-gray-300 py-[14px] text-right font-bold">$226.11 - $243.33</div><div class="border-b border-gray-300 py-[14px] text-gray-800">52wk Range</div><div class="border-b border-gray-300 py-[14px] text-right font-bold">$121.99 - $259.92</div><div class="border-b border-gray-300 py-[14px] text-gray-800">Volume</div><div class="border-b border-gray-300 py-[14px] text-right font-bold">427.5K</div><div class="border-b border-gray-300 py-[14px] text-gray-800">Avg Vol</div><div class="border-b border-gray-300 py-[14px] text-right font-bold">19.2M</div><div class="border-b border-gray-300 py-[14px] text-gray-800">Gross Margin</div><div class="border-b border-gray-300 py-[14px] text-right font-bold">54.80%</div><div class="border-b border-gray-300 py-[14px] text-gray-800">Dividend Yield</div><div class="border-b border-gray-300 py-[14px] text-right font-bold">1.55%</div></div></div></div></section>
<p>And there's little doubt Qualcomm intends to win at least its fair share of this growth. As CEO Cristiano Amon commented at Davos earlier this year, &#34;I have this view that at the end of the day, the winner of the edge is going to be the winner of the AI race.&#34;</p>
<p>Given Qualcomm's existing leading position within the mobile, small electronics, and remote high-performance computing space, it's conceivable that it could end up being bigger than Nvidia within this sliver of the chip market.</p>
<h2>Nothing to dismiss</h2>
<p>Don't misread the message. Nvidia is a tough competitor in any market it operates in. Qualcomm will need to earn whatever business it wins.</p>
<p>The fact that Nvidia continues to develop technology on this front, even though it clearly doesn't need to right now, speaks volumes about what it sees for edge computing in the foreseeable future. Qualcomm is simply addressing the same opportunity, and is perhaps better equipped to do so.</p><div id="article_pitch_container" class="pitch-container"><div class="mb-32px p-24px min-h-[1000px] bg-gray-100 md:min-h-[560px]"><div class="mb-8px h-10 w-60 rounded bg-gray-200"></div><div class="mb-16px h-8 w-48 rounded bg-gray-200"></div><div class="mb-2 h-4 w-full rounded bg-gray-200"></div><div class="mb-2 h-4 w-5/6 rounded bg-gray-200"></div><div class="mb-2 h-4 w-4/6 rounded bg-gray-200"></div><div class="mt-16px h-12 w-44 rounded bg-gray-300"></div><div class="mt-20px h-3 w-3/4 rounded bg-gray-200"></div></div></div><div id="promobox_container" class="pitch-container"><div class="min-h-[570px] rounded border border-gray-200 bg-gray-100 p-4 md:min-h-[350px]"><div class="mb-3 h-4 w-2/3 rounded bg-gray-200"></div><div class="mb-2 h-3 w-full rounded bg-gray-100"></div><div class="mb-2 h-3 w-5/6 rounded bg-gray-100"></div><div class="mt-6 h-28 w-full rounded bg-gray-200"></div></div></div>

NVDA Q1 just dropped. Revenue USD 81.6 billion (+85% YoY). Adjusted EPS +140% YoY. Data center revenue USD 75.2 billion (~92% of total). Every line beat consensus. Q2 guidance: USD 91 billion, and that excludes any China data center revenue. The board also added USD 80 billion to the buyback authorization and lifted the quarterly dividend by 24x.&nbsp;On paper, all green. But the stock dropped over 3% after-hours before clawing back. The market has gotten used to bigger NVDA beats, and a 3.1% top-line surprise wasn't enough this time. Layer on repricing noise from a revised reporting framework, and at the USD 6 trillion mark, the disagreement is real.&nbsp;Continued AI king run, or first real high-altitude correction?

<p>NVDA Q1 just dropped. Revenue USD 81.6 billion (+85% YoY). Adjusted EPS +140% YoY. Data center revenue USD 75.2 billion (~92% of total). Every line beat consensus. Q2 guidance: USD 91 billion, and that excludes any China data center revenue. The board also added USD 80 billion to the buyback authorization and lifted the quarterly dividend by 24x.&nbsp;</p><p>On paper, all green. But the stock dropped over 3% after-hours before clawing back. The market has gotten used to bigger NVDA beats, and a 3.1% top-line surprise wasn't enough this time. Layer on repricing noise from a revised reporting framework, and at the USD 6 trillion mark, the disagreement is real.&nbsp;</p><p>Continued AI king run, or first real high-altitude correction?</p>

NVDA Beats Every Line Yet Stock Wobbles?

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<p>Nvidia's Q1 report highlights strong growth in its 'edge computing' division, signaling significant market potential. This trend benefits rival Qualcomm, which is also expanding in edge computing sectors like IoT and automotive. With the global edge computing market projected to reach $6 trillion by 2035, Qualcomm aims to capitalize on this opportunity, potentially surpassing Nvidia in specific niches despite Nvidia's competitive strength.</p>

- Nvidia reported Q1 revenue of $81.6 billion, an 85% year-over-year increase, heavily driven by AI adoption, while its edge computing division saw 29% growth.  
- Qualcomm, traditionally a telecom company, is also targeting the edge computing market, with its IoT division growing 9%, indicating strong competition for emerging growth opportunities.  
- The global edge computing market is projected to expand at an annual rate of 27%, potentially exceeding $6 trillion by 2035, benefiting both companies as they strive for leadership in this sector.

A Tiny Detail in Nvidia's Q1 Report Is a Very Big Deal for Qualcomm