Qualcomm on Monday unveiled two artificial intelligence chips for data centers that will be available next year, diversifying beyond a stagnant smartphones market and sending its shares up 20%.

Qualcomm is evolving from a smartphone chipmaker to a comprehensive AI technology leader. The transition won’t happen overnight, but the strategy appears appealing and the timing is favorable.

Qualcomm announced new chips for AI data centers on Monday, in a move that could mean more competition for leading AI chipmakers such as Nvidia and AMD.

Available beginning in 2026, the AI200 is both the name of Qualcomm’s individual AI accelerator and the full server rack it slots into, complete with a Qualcomm CPU. The AI250 is Qualcomm’s next-generation AI accelerator and server coming in 2027. A third chip and server are scheduled for 2028.

Amazon CEO Andy Jassy said earlier this year that the Washington-based company could shrink its workforce by embracing AI. The firm is part of a cohort of large-cap companies that have seen their AI-related productivity increase as the technology becomes mainstream.