Qualcomm's Oryon CPU Architecture Strategy: Targeting the Non-x86 AI Laptop Market with a 3rd-Gen Architecture in 2025

Qualcomm's Oryon CPU Architecture Strategy: Targeting the Non-x86 AI Laptop Market with a 3rd-Gen Architecture in 2025Fast Technology reported on November 21st that Qualcomm launched its first Snapdragon X Elite processor featuring the self-developed Oryon CPU architecture last year, announcing a "PC Reborn" initiative to aggressively enter the AI PC laptop market. However, this year, the second-generation Oryon CPU architecture was only applied to the Snapdragon 8 Gen 2 for Galaxy mobile processor, with no updates for the PC platform

Qualcomm's Oryon CPU Architecture Strategy: Targeting the Non-x86 AI Laptop Market with a 3rd-Gen Architecture in 2025

Fast Technology reported on November 21st that Qualcomm launched its first Snapdragon X Elite processor featuring the self-developed Oryon CPU architecture last year, announcing a "PC Reborn" initiative to aggressively enter the AI PC laptop market. However, this year, the second-generation Oryon CPU architecture was only applied to the Snapdragon 8 Gen 2 for Galaxy mobile processor, with no updates for the PC platform. This strategic adjustment attracted industry attention, until Qualcomm's recent investor day meeting, where the company first publicly mentioned its third-generation Oryon CPU architecture, slated for next-generation AI PC laptops and expected to launch in 2025.

This suggests a parallel development strategy with separate designs for mobile and PC platforms, rather than a "one-size-fits-all" approach. While specific performance parameters of the third-generation architecture haven't been revealed, Qualcomm stated that the second generation offers a 30% performance improvement at the same power level and a 57% power reduction at the same performance level compared to the Snapdragon X Elite. Qualcomm claims this surpasses AMD Ryzen AI 300 series and Intel Core Ultra 200V series.

Furthermore, Qualcomm plans to expand its next-generation Snapdragon laptop product line, targeting a price point of $600. The existing Snapdragon X Plus series will also add a suspected 6-core model to further penetrate the entry-level market above $600.

Qualcomm's ambitions extend beyond this. By 2029, it aims for $4 billion in PC chip revenue. While significantly less than Intel's nearly $29 billion in 2023 revenue, Qualcomm isn't directly competing with Intel. Instead, it targets a 30%-50% share of the non-x86 AI laptop market, a fiercely competitive space including Apple, NVIDIA, and MediaTek.

Beyond PC chips, Qualcomm projects $8 billion in automotive, $4 billion in industrial applications, and $2 billion in VR product revenue by 2029. This diversification reflects a grand vision for future technologies and long-term strategic planning for its Oryon CPU architecture.

Qualcomm's parallel development strategy for mobile and PC Oryon architectures is logical. Mobile and PC devices have vastly different processing power and power consumption requirements. Mobile processors prioritize power efficiency and battery life, while PC processors emphasize performance and computing power. Separate architectures better meet these needs and maximize Oryon's strengths.

The second-generation Oryon architecture's significant power-performance improvements strongly suggest the potential of the third generation. The 30% performance gain at the same power and 57% power reduction at the same performance demonstrate significant breakthroughs in architecture design and process technology. This will directly impact the performance and battery life of next-generation Snapdragon AI laptops, enhancing user experience and competitiveness.

The $600 price target shows Qualcomm's strategy isn't solely focused on the high-end PC market. Targeting the entry-level market allows for broader user reach, increased market share, and a solid foundation for future growth, further evidenced by the addition of a 6-core Snapdragon X Plus variant.

Qualcomm's projected $4 billion in PC chip revenue by 2029, while far below Intel's, is not unrealistic given its focus on the non-x86 AI laptop market. This market is relatively small but has immense growth potential. As AI technology develops and proliferates, demand for AI computing power will increase, giving non-x86 AI laptops greater room for expansion.

Qualcomm's diversification into automotive, industrial applications, and VR reduces reliance on a single market and improves resilience. This also provides more funding for Oryon architecture R&D, creating a positive cycle.

In conclusion, Qualcomm's Oryon CPU architecture strategy is a long-term, ambitious, and challenging plan. Its parallel development strategy and diverse market focus demonstrate Qualcomm's ambition in future technologies. While achieving these goals requires overcoming many hurdles, Qualcomm's strengths in R&D and market expansion cannot be underestimated. Its success in the non-x86 AI laptop market remains to be seen.