Investing.com -- Qualcomm Inc. (NASDAQ: QCOM) shares rose 4% Tuesday following a Bloomberg report that the company secured a deal to supply AI chips to ByteDance Ltd., the owner of TikTok.

ByteDance is set to purchase millions of Qualcomm chips known as application-specific integrated circuits, which will support the social media company’s AI agent software, according to people familiar with the matter cited by Bloomberg.

The Chinese tech giant is poised to become one of Qualcomm’s first major customers for the AI-focused ASICs. The deal marks a key win for Qualcomm as it attempts to expand beyond smartphone processors into AI infrastructure.

Chief Executive Officer Cristiano Amon previously said the company is beginning to line up clients for the chips. During a post-earnings conference call last month, he mentioned "engagement" with a number of companies without identifying potential customers.