Qualcomm shares traded sharply higher Monday following the company's unveiling of new AI chips aimed at the data center market.

Qualcomm (NASDAQ:QCOM) announced its entry into the artificial intelligence accelerator market on Monday, as it looks to take on industry heavyweights Nvidia (NASDAQ:NVDA) and AMD (NASDAQ:AMD). The Cristiano Amon-led company unveiled its Qualcomm A1200 and AI250 chip-based accelerator cards and racks,

Shares of wireless chipmaker Qualcomm (NASDAQ:QCOM) jumped 12.3% in the afternoon session after the company announced its entry into the data center artificial intelligence (AI) market with two new chips designed to compete with industry leaders.

The stock briefly reached $205.95 per share, up 21.9% from the opening price on NASDAQ, then settled to around $190, still well over 10% higher.

The S&P 500 rose about 1% and the Nasdaq Composite climbed about 1.5%, according to market data. Market strategists said the Fed meeting on Oct. 29 is already shaping expectations, with many pricing the central bank as likely to cut rates.

Shares of Qualcomm Inc (NASDAQ: QCOM) closed out Monday’s session just above $167, extending a steady recovery that’s put it back near the upper end of its recent range. The stock is still up