Bank of Nova Scotia lessened its stake in Qualcomm Incorporated (NASDAQ:QCOM – Free Report) by 20.3% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 328,393 shares of the wireless technology company’s stock after selling 83,715 shares during the period. Bank of Nova Scotia’s holdings in Qualcomm were worth $42,310,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
Several other hedge funds also recently made changes to their positions in QCOM. Vanguard Group Inc. increased its holdings in shares of Qualcomm by 0.6% in the 4th quarter. Vanguard Group Inc. now owns 114,144,068 shares of the wireless technology company’s stock valued at $19,524,350,000 after acquiring an additional 647,076 shares during the period. Geode Capital Management LLC grew its position in Qualcomm by 12.5% during the 4th quarter. Geode Capital Management LLC now owns 28,897,079 shares of the wireless technology company’s stock worth $4,931,968,000 after purchasing an additional 3,221,924 shares during the last quarter. Wellington Management Group LLP grew its position in Qualcomm by 34.5% during the 4th quarter. Wellington Management Group LLP now owns 16,727,862 shares of the wireless technology company’s stock worth $2,861,301,000 after purchasing an additional 4,290,622 shares during the last quarter. Norges Bank acquired a new position in Qualcomm in the fourth quarter valued at $2,591,056,000. Finally, Amundi raised its holdings in shares of Qualcomm by 9.9% in the third quarter. Amundi now owns 12,671,635 shares of the wireless technology company’s stock valued at $2,136,486,000 after buying an additional 1,138,541 shares during the last quarter. Hedge funds and other institutional investors own 74.35% of the company’s stock.
Wall Street Analysts Forecast Growth QCOM has been the topic of a number of research reports. Daiwa Securities Group raised Qualcomm from a “neutral” rating to an “outperform” rating and set a $225.00 price target on the stock in a report on Friday, May 8th. Citigroup increased their price objective on Qualcomm from $160.00 to $198.00 and gave the stock a “neutral” rating in a research report on Thursday, June 25th. Weiss Ratings restated a “hold (c)” rating on shares of Qualcomm in a research note on Wednesday, June 24th. Dbs Bank raised Qualcomm to a “moderate buy” rating in a report on Tuesday, July 7th. Finally, Royal Bank Of Canada boosted their price objective on shares of Qualcomm from $175.00 to $250.00 and gave the company a “sector perform” rating in a research note on Thursday, June 25th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, twenty-one have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $219.76.
Check Out Our Latest Stock Analysis on Qualcomm
Key Qualcomm News Here are the key news stories impacting Qualcomm this week:
Positive Sentiment: Qualcomm is expanding its growth narrative with AI-chip deals and new partnerships, including ties with a major Apple rival, which could help diversify demand beyond smartphones. Positive Sentiment: New Snapdragon launches are expected to support Qualcomm’s AI, PC, and handset pipeline ahead of Q3 results, giving investors a potential catalyst if execution is strong. Neutral Sentiment: Wall Street is closely watching Qualcomm’s upcoming earnings and key operating metrics to gauge whether recent product momentum is translating into financial improvement. Negative Sentiment: Qualcomm’s double-digit chip price increases may reflect rising input costs, but they also raise the risk of customer pushback in already price-sensitive end markets. Article Title Negative Sentiment: Broader semiconductor stocks are under pressure from profit-taking, valuation concerns, and unwinding of leveraged AI trades, which is weighing on Qualcomm along with the rest of the sector. Insider Activity In related news, EVP Heather S. Ace sold 3,200 shares of the stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $177.82, for a total transaction of $569,024.00. Following the transaction, the executive vice president directly owned 39,735 shares in the company, valued at approximately $7,065,677.70. This represents a 7.45% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Akash J. Palkhiwala sold 2,500 shares of the stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $211.90, for a total transaction of $529,750.00. Following the transaction, the executive vice president owned 28,184 shares in the company, valued at approximately $5,972,189.60. The trade was a 8.15% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 21,721 shares of company stock worth $4,044,465. Corporate insiders own 0.05% of the company’s stock.
Qualcomm Stock Performance NASDAQ QCOM opened at $166.97 on Friday. Qualcomm Incorporated has a 1-year low of $121.99 and a 1-year high of $259.92. The company has a market capitalization of $175.99 billion, a P/E ratio of 18.15, a PEG ratio of 5.08 and a beta of 1.63. The business has a 50 day moving average price of $203.52 and a 200 day moving average price of $168.39. The company has a debt-to-equity ratio of 0.54, a current ratio of 2.37 and a quick ratio of 1.61.
Qualcomm (NASDAQ:QCOM – Get Free Report) last released its quarterly earnings data on Wednesday, April 29th. The wireless technology company reported $2.65 EPS for the quarter, topping the consensus estimate of $2.56 by $0.09. The business had revenue of $10.60 billion for the quarter, compared to analyst estimates of $10.59 billion. Qualcomm had a net margin of 22.31% and a return on equity of 42.11%. The business’s revenue for the quarter was down 3.5% compared to the same quarter last year. During the same period in the previous year, the firm earned $2.85 EPS. Qualcomm has set its Q3 2026 guidance at 2.100-2.300 EPS. Sell-side analysts expect that Qualcomm Incorporated will post 7.97 EPS for the current fiscal year.
Qualcomm Dividend Announcement The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 24th. Investors of record on Thursday, September 3rd will be given a dividend of $0.92 per share. This represents a $3.68 dividend on an annualized basis and a yield of 2.2%. The ex-dividend date is Thursday, September 3rd. Qualcomm’s dividend payout ratio (DPR) is currently 40.00%.
Qualcomm Company Profile (Free Report)
Qualcomm Incorporated is a global semiconductor and telecommunications equipment company headquartered in San Diego, California. Founded in 1985, the company is known for its development of wireless technologies and for playing a central role in the evolution of digital cellular standards, including CDMA and subsequent generations of mobile standards. Qualcomm’s business combines the design and sale of semiconductor products with a patent licensing program for wireless technologies and related intellectual property.
The company’s product portfolio includes system-on-chip (SoC) platforms marketed under the Snapdragon brand, cellular modem and RF front-end components, connectivity solutions for Wi‑Fi and Bluetooth, and processors and platforms aimed at automotive, IoT, networking and edge-computing applications.
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Qualcomm logo is displayed at the company’s booth at the 8th China International Import Expo (CIIE) in Shanghai, China, November 5, 2025. REUTERS/Maxim Shemetov Purchase Licensing Rights, opens new tab
July 24 (Reuters) - Smartphone chipmaker Qualcomm (QCOM.O), opens new tab has told customers it would raise prices by a percentage in the double digits due to rising costs, Bloomberg News reported on Friday, citing a letter sent to clients.
The San Diego, California-based company did not immediately respond to a Reuters request for comment. Its shares were trading down more than 1%.
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Here are some details:
The company sent the letter to customers on Friday, informing them that the price hike will go into effect for products shipped after September 1, the report said.
Reuters could not independently verify the report.
Qualcomm told customers that it could no longer absorb rising supplier costs and had sought alternative components from new suppliers, the report said.
The report comes as Qualcomm grapples with mounting pressure in the smartphone market, squeezed by a memory chip shortage as investment is redirected toward AI infrastructure.
Qualcomm is set to report its third-quarter results on July 29.
Reporting by Anhata Rooprai in Bengaluru; Editing by Shilpi Majumdar
Our Standards: The Thomson Reuters Trust Principles., opens new tab
For most of the AI boom, investors have sorted semiconductor companies into neat categories.
NVIDIA Corp. (NASDAQ:NVDA) dominated AI accelerators.
Qualcomm Inc. (NASDAQ:QCOM) stayed trapped in the “smartphone chipmaker” bucket.
Citrini Research argues that classification may soon become outdated. The business underneath Qualcomm is turning into something else.
• Qualcomm stock is showing weakness. Why is QCOM stock trading lower?
Qualcomm Is Trying To Attack AI’s “Memory Wall”In the latest edition of its Citrini Semis Substack, Citrini Research highlighted that Qualcomm’s transformation extends far beyond smartphones.
The firm said the company is making a credible push into AI infrastructure — a market many investors still aren’t pricing in.
Instead, it’s attempting to solve one of artificial intelligence’s biggest bottlenecks: the exploding cost of moving data between memory and processors.
The investment thesis doesn’t revolve around another AI accelerator.
It revolves around architecture.
Citrini argues that today’s AI infrastructure faces a growing “memory wall,” where processors have become dramatically faster while memory bandwidth struggles to keep up.
High-bandwidth memory has become the industry’s preferred solution, but soaring costs are creating incentives to pursue alternative architectures.
“HBM isn’t an immutable requirement, it’s just the industry’s current answer to the cost of moving enormous amounts of data back and forth between memory and the accelerator,” Citrini wrote.
The firm believes Qualcomm’s newly introduced High Bandwidth Compute (HBC) architecture could become one of those alternatives.
Instead of relying on traditional HBM packaging, Qualcomm places compute directly beneath LPDDR memory, reducing data movement while avoiding expensive advanced packaging technologies.
According to Qualcomm executive Tony Pialis, the architecture delivers significantly higher bandwidth efficiency while reducing power consumption.
If successful, Qualcomm wouldn’t simply be selling another AI chip.
It would be attacking one of AI infrastructure’s largest cost centers.
Why Investors Should Focus On 2029, Not Next QuarterSkeptics argue that Qualcomm’s data center business remains years away from contributing meaningful revenue.
Citrini acknowledges that point but says investors are focusing on the wrong timeline.
Citrini acknowledges that production timelines remain early, with AI200 systems arriving this year and larger hyperscaler deployments expected later this decade.
Semiconductor stocks are routinely valued years ahead of realized earnings, and the firm said 2028 and 2029 are “precisely the year we are putting multiples on this.”
Qualcomm does not need billions in AI revenue today. It needs investors to believe those revenues are becoming credible.
The pieces have been bought rather than built.
Qualcomm closed a $2.3 billion acquisition of Alphawave in December and agreed in June to buy AI software firm Modular for roughly $3.9 billion.
Where Does Wall Street Stand?According to Benzinga Analyst Ratings, the consensus on Qualcomm is Neutral, with an average price target of $207.93. That implies roughly 22% upside from the July 22 close of $171.11, with targets running from $100 to a Street-high $300.
Qualcomm reports fiscal third-quarter results on July 29.
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Analysts on Wall Street project that Qualcomm (QCOM - Free Report) will announce quarterly earnings of $2.22 per share in its forthcoming report, representing a decline of 19.9% year over year. Revenues are projected to reach $9.71 billion, declining 6.3% from the same quarter last year.
The consensus EPS estimate for the quarter has been revised 1% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
In light of this perspective, let's dive into the average estimates of certain Qualcomm metrics that are commonly tracked and forecasted by Wall Street analysts.
The consensus estimate for 'Revenues- QCT' stands at $8.26 billion. The estimate indicates a change of -8.1% from the prior-year quarter.
Based on the collective assessment of analysts, 'Revenues- QTL' should arrive at $1.25 billion. The estimate suggests a change of -5.3% year over year.
Analysts forecast 'Revenues- QCT- Automotive' to reach $1.49 billion. The estimate points to a change of +51.4% from the year-ago quarter.
Analysts' assessment points toward 'Revenues- QCT- Handsets' reaching $4.92 billion. The estimate points to a change of -22.2% from the year-ago quarter.
The collective assessment of analysts points to an estimated 'Revenues- QCT- IoT (internet of things)' of $1.83 billion. The estimate indicates a change of +9% from the prior-year quarter.
The combined assessment of analysts suggests that 'Revenues- Reconciling items' will likely reach $141.00 million. The estimate points to a change of +161.1% from the year-ago quarter.
Analysts expect 'Income / (loss) before taxes- QTL' to come in at $854.11 million. Compared to the present estimate, the company reported $942.00 million in the same quarter last year.
Analysts predict that the 'Income / (loss) before taxes- QCT' will reach $1.99 billion. Compared to the current estimate, the company reported $2.67 billion in the same quarter of the previous year.
View all Key Company Metrics for Qualcomm here>>>
Shares of Qualcomm have experienced a change of -16.5% in the past month compared to the +0.6% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), QCOM is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Qualcomm (QCOM - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this chipmaker have returned -16.5% over the past month versus the Zacks S&P 500 composite's +0.6% change. The Zacks Electronics - Semiconductors industry, to which Qualcomm belongs, has lost 11.4% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Qualcomm is expected to post earnings of $2.22 per share, indicating a change of -19.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -1% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $10.78 points to a change of -10.4% from the prior year. Over the last 30 days, this estimate has changed -0.1%.
For the next fiscal year, the consensus earnings estimate of $10.88 indicates a change of +1% from what Qualcomm is expected to report a year ago. Over the past month, the estimate has changed +1%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Qualcomm is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Qualcomm, the consensus sales estimate for the current quarter of $9.71 billion indicates a year-over-year change of -6.3%. For the current and next fiscal years, $42.69 billion and $44.01 billion estimates indicate -3.3% and +3.1% changes, respectively.
Last Reported Results and Surprise HistoryQualcomm reported revenues of $10.6 billion in the last reported quarter, representing a year-over-year change of -2.2%. EPS of $2.65 for the same period compares with $2.85 a year ago.
Compared to the Zacks Consensus Estimate of $10.62 billion, the reported revenues represent a surprise of -0.19%. The EPS surprise was +3.11%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates just once over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Qualcomm is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Qualcomm. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Key Takeaways QCOM to report fiscal Q3 2026 earnings on July 29, with sales estimated at $9.71 billion and EPS at $2.22.Qualcomm expanded Snapdragon across smartphones and AI PCs, supporting broader market reach.QCOM faces smartphone competition, pricing pressure and mixed Android demand despite AI momentum. Qualcomm Incorporated (QCOM - Free Report) is scheduled to report third-quarter fiscal 2026 earnings after the closing bell on July 29. The Zacks Consensus Estimate for sales and earnings is pegged at $9.71 billion and $2.22 per share, respectively. Earnings estimates for QCOM for fiscal 2026 have increased 0.4% to $10.78 over the past 60 days, and those for fiscal 2027 have also increased 1.7% to $10.88.
QCOM Estimate Trend
Image Source: Zacks Investment Research
Earnings Surprise HistoryThe chip manufacturer delivered a trailing four-quarter earnings surprise of 3.28%, on average, beating estimates on each occasion. In the last reported quarter, the company pulled off an earnings surprise of 3.11%.
Image Source: Zacks Investment Research
Earnings WhispersOur proven model does not conclusively predict an earnings beat for Qualcomm for the fiscal third quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Qualcomm currently has an ESP of -0.58% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Shaping Upcoming ResultsDuring the to-be-reported quarter, Qualcomm introduced two new Snapdragon mobile platforms to enhance performance, deliver advanced artificial intelligence (AI) capabilities and improve user experiences across the mid-range and entry-tier smartphone markets. The launches strengthened the company's smartphone offerings and reinforced its presence in high-volume device categories. This is likely to have led to incremental handset revenues.
The company also expanded its AI PC portfolio with the launch of the Snapdragon C platform, extending its reach into the entry-tier laptop market. Offering AI-powered computing, reliable performance and improved power efficiency at an affordable price point, the platform enables the company to address a broader customer base. Early processor demand from PC manufacturers ahead of new device launches is expected to support chipset shipments, providing a favorable contribution to Qualcomm's fiscal third-quarter results.
In the quarter under review, Qualcomm continued to diversify its business by expanding its presence across PCs, connected devices and edge AI applications. The company's broader Snapdragon platform is expected to increase its exposure to multiple high-growth markets while reducing its reliance on the smartphone segment over time. These strategic initiatives are expected to strengthen Qualcomm's long-term growth prospects and are likely to have a positive impact during the June quarter.
Despite strong momentum in AI, PCs and automotive, Qualcomm continues to face intense competition in its smartphone chipset business. Memory supply constraints and related price increases affect device economics. Management expects handset revenues from Chinese customers to bottom in the fiscal third quarter, assuming weaker low-tier handset units sequentially, which can weigh on the licensing revenue mix. The company is witnessing increasing pricing pressure from rival chipmakers, particularly in the Android market, which could weigh on margins. At the same time, continued investments in AI, automotive, data center and XR technologies are likely to have kept operating expenses elevated during the quarter. Mixed demand in the global smartphone market, especially in the entry-level segment, might have also limited chipset shipments.
Price PerformanceOver the past year, Qualcomm has gained 9.8% compared with the industry’s growth of 61%, underperforming competitors like Intel Corporation (INTC - Free Report) and Broadcom Inc. (AVGO - Free Report) . While Broadcom has gained 38.7%, Intel has surged 329.6% over the said time frame.
Image Source: Zacks Investment Research
Key Valuation MetricFrom a valuation standpoint, Qualcomm appears to be relatively cheaper compared to the industry and below its mean. Going by the price/earnings ratio, the company’s shares currently trade at 16.07 forward earnings, lower than 30.2 for the industry and the stock’s mean of 16.58.
Image Source: Zacks Investment Research
Investment ConsiderationsBy strengthening its leadership in on-device AI, premium Snapdragon platforms and connected-edge technologies, Qualcomm is well-positioned to diversify its revenue base beyond smartphones. Continued momentum in Automotive and IoT, expanding AI capabilities and the company's entry into the data center market are expected to support long-term revenue growth, improve product diversification and strengthen earnings potential.
However, persistent weakness in the Android smartphone market due to industry-wide memory supply constraints, coupled with customer concentration and intense competition in the semiconductor industry, is expected to weigh on near-term revenues. In addition, geopolitical uncertainties, evolving trade policies and the gradual transition of major customers toward in-house chip development are likely to remain key challenges for the company’s growth and profitability.
End NoteQualcomm continues to maintain a strong competitive position, supported by its robust technology portfolio and leadership in wireless communications. Upward revisions in earnings estimates also reflect improving investor confidence. However, persistent competitive pressures in the handset market, customer concentration and an uncertain macroeconomic environment could limit near-term upside, making the stock less attractive ahead of the quarterly results.
Existing investors may continue to hold the stock, supported by its attractive valuation, strong product lineup and ongoing efforts to diversify its business across multiple end markets, which should provide a solid foundation for sustainable long-term growth.
Since the advent of modern-day artificial intelligence platforms, Nvidia (NVDA -1.52%) has been the chip provider of choice thanks to its dominance in data center graphics processing units (GPUs). Even computing powerhouses like Intel and Advanced Micro Devices were on the fringe of the market. Mobile processor maker Qualcomm (QCOM -2.07%) wasn't even part of the discussion.
Now, that's changing. The often-overlooked mobile technology name recently inked deals to supply three hyperscalers -- including Microsoft (MSFT -0.74%) and Facebook parent Meta Platforms (META -2.91%) -- with artificial intelligence (AI) processing chips. All told, Qualcomm expects to do at least $15 billion worth of data center business in its fiscal 2029, up from none a year ago. For perspective on that figure, the company reported revenue of $44.3 billion for its fiscal 2025, which ended in September.
Qualcomm's budding presence in the AI data center business is not only undeniable, but meaningful.
It's also an opportunity for volatility-tolerant investors.
Qualcomm makes a well-deserved splash It shouldn't come as a complete surprise. Qualcomm has been alluding to this next evolution of its high-performance, energy-efficient mobile processing tech (you've probably heard of its popular Snapdragon processor) for some time now. However, it plainly confirmed its plans to enter the AI data center business in October of last year, when it "announced the launch of its next-generation AI inference-optimized solutions for data centers: the Qualcomm AI200 and AI250 chip-based accelerator cards, and racks." It then expanded its AI portfolio last month, introducing the Dragonfly AI300 inference accelerator, which was designed with agentic AI in mind.
That's also when the company confirmed that its Dragonfly C1000 data center central processing unit (CPU) will "power Meta's next-generation server fleet, underscoring the growing importance of high-performance, power-efficient compute in large-scale scale-out environments" as part of a multi-generation collaboration. Microsoft's Azure cloud computing platform, in the meantime, will utilize Qualcomm's HBC (high-bandwidth compute) chips alongside the AI200 and AI250 beginning next year, as the combination of this hardware becomes available at scale.
Image source: Getty Images.
This tech isn't a mere replication of solutions that are already available from rival chipmakers. There's a very specific reason Meta and Microsoft are interested enough to give Qualcomm's solutions a shot when it's the least-proven name in the business. That reason is efficiency, or more specifically, lower operating costs.
By directly connecting processing cores to high-bandwidth memory, Qualcomm says its hardware can deliver on the order of 4 to 8 times more computing performance per watt compared to existing GPU-based architectures, addressing one of the AI industry's chief challenges at this time.
Growth ahead on many fronts Qualcomm's still something of an outsider within AI data center computing circles. However, the company's forecast for a minimum of $15 billion worth of artificial intelligence data center revenue in fiscal 2029 (which ends in September 2029) isn't outrageous in the least. The outlook from Precedence Research suggests that the global AI processor market is poised to grow from a little less than $58 billion last year to more than $146 billion by 2029, en route to a total of $550 billion in 2035. Qualcomm would only need to capture about one-tenth of the projected market to reach its 2029 target.
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The fact that its technology is built to handle the relatively new demands of agentic AI matters, too. Precedence Research's study also asserts that the agentic artificial intelligence market is on pace to grow from less than $8 billion last year to more than $32 billion in 2029, although it doesn't anticipate that this sliver of the artificial intelligence industry will outright explode until the first half of the 2030s. For 2034, its expected market size is just under $200 billion.
All that being said, it's arguable that investors are overlooking -- and therefore undervaluing -- Qualcomm's future on the automotive and the Internet of Things (IoT) fronts. The company's expectations that both its automobile-related and IoT (wearables, robotics, security systems, industrial automation, etc.) will more than double in size over the coming four years are realistic as well.
Qualcomm expects its revenues from sources beyond its mobile handset business to grow by an average of 40% per year through 2029, making it one of the hotter growth names of the next chapter of the AI revolution.
Data source: Morningstar. Chart by author.
This might help: Although the majority of analysts only rate QCOM stock as a hold right now, their consensus price target of $228.57 is 33% above the ticker's current price. That's not a bad way to start out a new trade in this recently discounted stock. Just keep in mind that its volatility is likely to linger for at least a while longer.
B&D White Capital Company LLC bought a new position in Qualcomm Incorporated (NASDAQ:QCOM – Free Report) during the first quarter, according to its most recent 13F filing with the SEC. The institutional investor bought 11,800 shares of the wireless technology company’s stock, valued at approximately $1,520,000.
Other hedge funds and other institutional investors have also recently modified their holdings of the company. Vanguard Group Inc. lifted its stake in shares of Qualcomm by 0.6% during the fourth quarter. Vanguard Group Inc. now owns 114,144,068 shares of the wireless technology company’s stock worth $19,524,350,000 after buying an additional 647,076 shares during the period. Geode Capital Management LLC boosted its stake in shares of Qualcomm by 12.5% in the fourth quarter. Geode Capital Management LLC now owns 28,897,079 shares of the wireless technology company’s stock worth $4,931,968,000 after buying an additional 3,221,924 shares during the last quarter. Wellington Management Group LLP increased its holdings in shares of Qualcomm by 34.5% during the 4th quarter. Wellington Management Group LLP now owns 16,727,862 shares of the wireless technology company’s stock valued at $2,861,301,000 after purchasing an additional 4,290,622 shares in the last quarter. Norges Bank purchased a new position in Qualcomm in the fourth quarter valued at $2,591,056,000. Finally, Amundi raised its holdings in Qualcomm by 9.9% in the 3rd quarter. Amundi now owns 12,671,635 shares of the wireless technology company’s stock worth $2,136,486,000 after purchasing an additional 1,138,541 shares during the period. 74.35% of the stock is currently owned by institutional investors.
Wall Street Analyst Weigh In Several analysts have recently issued reports on QCOM shares. Argus set a $220.00 target price on shares of Qualcomm in a research report on Friday, May 1st. Dbs Bank raised shares of Qualcomm to a “moderate buy” rating in a research note on Tuesday, July 7th. Roth Capital began coverage on Qualcomm in a report on Friday, May 8th. They issued a “buy” rating on the stock. Evercore set a $179.00 target price on Qualcomm in a report on Thursday, April 30th. Finally, Melius Research set a $220.00 target price on Qualcomm in a research report on Monday, May 18th. One analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, twenty-one have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Qualcomm has a consensus rating of “Hold” and an average price target of $219.76.
Read Our Latest Research Report on QCOM
Qualcomm Stock Up 1.2% Shares of QCOM opened at $175.63 on Thursday. Qualcomm Incorporated has a 52-week low of $121.99 and a 52-week high of $259.92. The company has a quick ratio of 1.61, a current ratio of 2.37 and a debt-to-equity ratio of 0.54. The stock has a fifty day simple moving average of $204.79 and a two-hundred day simple moving average of $168.41. The company has a market capitalization of $185.11 billion, a PE ratio of 19.09, a price-to-earnings-growth ratio of 5.16 and a beta of 1.63.
Qualcomm (NASDAQ:QCOM – Get Free Report) last announced its quarterly earnings results on Wednesday, April 29th. The wireless technology company reported $2.65 earnings per share for the quarter, beating the consensus estimate of $2.56 by $0.09. Qualcomm had a net margin of 22.31% and a return on equity of 42.11%. The firm had revenue of $10.60 billion for the quarter, compared to analysts’ expectations of $10.59 billion. During the same quarter in the previous year, the company posted $2.85 EPS. The company’s revenue was down 3.5% compared to the same quarter last year. Qualcomm has set its Q3 2026 guidance at 2.100-2.300 EPS. As a group, equities analysts forecast that Qualcomm Incorporated will post 7.97 EPS for the current year.
Qualcomm Announces Dividend The company also recently declared a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, September 3rd will be paid a $0.92 dividend. The ex-dividend date of this dividend is Thursday, September 3rd. This represents a $3.68 annualized dividend and a dividend yield of 2.1%. Qualcomm’s dividend payout ratio is 40.00%.
Insider Activity In related news, CEO Cristiano R. Amon sold 10,000 shares of the company’s stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $180.00, for a total value of $1,800,000.00. Following the transaction, the chief executive officer directly owned 197,568 shares in the company, valued at approximately $35,562,240. This represents a 4.82% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Heather S. Ace sold 3,200 shares of the stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $177.82, for a total value of $569,024.00. Following the completion of the transaction, the executive vice president owned 39,735 shares of the company’s stock, valued at $7,065,677.70. The trade was a 7.45% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 21,721 shares of company stock worth $4,044,465 over the last quarter. 0.05% of the stock is currently owned by corporate insiders.
Key Qualcomm News Here are the key news stories impacting Qualcomm this week:
Positive Sentiment: Qualcomm announced a partnership with Samsung to help power the upcoming Galaxy smartphone lineup, a win for its mobile chip franchise and a potential support for future handset revenue. Qualcomm partners with Samsung to power upcoming Galaxy lineup Neutral Sentiment: Shares have been trying to rebound after a large year-to-date decline, and some coverage says the stock remains attractive on earnings-based valuation metrics even though cash-flow models show it is closer to fair value. QUALCOMM (QCOM) Stock Looks Below Fair Value On Earnings Yet Near Fair Value On Cash Flow Neutral Sentiment: Recent trading showed Qualcomm outperforming the broad market on a daily basis, though one report noted it lagged some semiconductor peers, suggesting the move may be more of a technical rebound than a broad sector breakout. Qualcomm Inc. stock underperforms Tuesday when compared to competitors despite daily gains Negative Sentiment: Analysts are heading into the July 29 earnings report expecting a decline in earnings, which keeps pressure on the stock and raises the risk of disappointment if results or guidance miss expectations. Analysts Estimate Qualcomm (QCOM) to Report a Decline in Earnings: What to Look Out for Negative Sentiment: One report highlighted that Qualcomm has fallen more than 30% since May, with investors waiting for earnings to determine whether the recent slide is a buying opportunity or a sign that the market remains worried about growth. Qualcomm Stock Slides 30%: Buying Opportunity Ahead of July 29 Earnings About Qualcomm (Free Report)
Qualcomm Incorporated is a global semiconductor and telecommunications equipment company headquartered in San Diego, California. Founded in 1985, the company is known for its development of wireless technologies and for playing a central role in the evolution of digital cellular standards, including CDMA and subsequent generations of mobile standards. Qualcomm’s business combines the design and sale of semiconductor products with a patent licensing program for wireless technologies and related intellectual property.
The company’s product portfolio includes system-on-chip (SoC) platforms marketed under the Snapdragon brand, cellular modem and RF front-end components, connectivity solutions for Wi‑Fi and Bluetooth, and processors and platforms aimed at automotive, IoT, networking and edge-computing applications.
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Wall Street expects a year-over-year decline in earnings on lower revenues when Qualcomm (QCOM - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 29. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis chipmaker is expected to post quarterly earnings of $2.22 per share in its upcoming report, which represents a year-over-year change of -19.9%.
Revenues are expected to be $9.71 billion, down 6.3% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.98% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Qualcomm?For Qualcomm, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.58%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Qualcomm will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Qualcomm would post earnings of $2.57 per share when it actually produced earnings of $2.65, delivering a surprise of +3.11%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Qualcomm doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Qualcomm (QCOM - Free Report) ended the recent trading session at $173.67, demonstrating a +1.97% change from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 0.89%. On the other hand, the Dow registered a gain of 0.74%, and the technology-centric Nasdaq increased by 1.29%.
Heading into today, shares of the chipmaker had lost 23.25% over the past month, lagging the Computer and Technology sector's loss of 6.6% and the S&P 500's loss of 0.63%.
Market participants will be closely following the financial results of Qualcomm in its upcoming release. The company plans to announce its earnings on July 29, 2026. The company is expected to report EPS of $2.22, down 19.86% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $9.73 billion, down 6.16% from the prior-year quarter.
QCOM's full-year Zacks Consensus Estimates are calling for earnings of $10.79 per share and revenue of $42.71 billion. These results would represent year-over-year changes of -10.31% and -3.25%, respectively.
Investors might also notice recent changes to analyst estimates for Qualcomm. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.08% higher within the past month. Right now, Qualcomm possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Qualcomm is presently trading at a Forward P/E ratio of 15.79. This indicates a discount in contrast to its industry's Forward P/E of 43.32.
It's also important to note that QCOM currently trades at a PEG ratio of 3.74. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Electronics - Semiconductors industry was having an average PEG ratio of 1.66.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 47, positioning it in the top 20% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Allspring Global Investments Holdings LLC decreased its position in Qualcomm Incorporated (NASDAQ:QCOM – Free Report) by 38.7% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 198,807 shares of the wireless technology company’s stock after selling 125,721 shares during the quarter. Allspring Global Investments Holdings LLC’s holdings in Qualcomm were worth $25,304,000 as of its most recent SEC filing.
A number of other large investors also recently made changes to their positions in QCOM. Your Advocates Ltd. LLP acquired a new position in shares of Qualcomm in the first quarter valued at about $26,000. Richardson Financial Services Inc. increased its position in Qualcomm by 90.9% during the fourth quarter. Richardson Financial Services Inc. now owns 168 shares of the wireless technology company’s stock worth $29,000 after acquiring an additional 80 shares during the period. Torren Management LLC acquired a new stake in Qualcomm in the 4th quarter worth about $29,000. Caitong International Asset Management Co. Ltd boosted its holdings in Qualcomm by 17,000.0% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 171 shares of the wireless technology company’s stock valued at $29,000 after purchasing an additional 170 shares during the period. Finally, Birchwood Financial Partners Inc. bought a new stake in Qualcomm in the 4th quarter valued at about $31,000. Institutional investors own 74.35% of the company’s stock.
Analyst Upgrades and Downgrades Several research analysts have recently commented on QCOM shares. Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating and set a $160.00 target price on shares of Qualcomm in a report on Thursday, April 30th. Dbs Bank raised Qualcomm to a “moderate buy” rating in a report on Tuesday, July 7th. Robert W. Baird set a $300.00 price target on Qualcomm in a research note on Friday, May 1st. Morgan Stanley upgraded shares of Qualcomm from an “underweight” rating to an “equal weight” rating and increased their price objective for the stock from $146.00 to $231.00 in a research note on Thursday, June 25th. Finally, BNP Paribas Exane cut shares of Qualcomm to a “neutral” rating in a research report on Wednesday, April 29th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, twenty-one have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $219.76.
Read Our Latest Report on QCOM
Insider Transactions at Qualcomm In other Qualcomm news, EVP Heather S. Ace sold 3,200 shares of the stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $177.82, for a total value of $569,024.00. Following the completion of the transaction, the executive vice president directly owned 39,735 shares in the company, valued at approximately $7,065,677.70. This trade represents a 7.45% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Cristiano R. Amon sold 10,000 shares of Qualcomm stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $180.00, for a total value of $1,800,000.00. Following the sale, the chief executive officer directly owned 197,568 shares in the company, valued at $35,562,240. The trade was a 4.82% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 21,721 shares of company stock valued at $4,044,465 over the last quarter. 0.05% of the stock is currently owned by insiders.
Qualcomm Price Performance Shares of QCOM stock opened at $170.32 on Tuesday. The business has a fifty day simple moving average of $206.28 and a 200 day simple moving average of $168.36. The company has a market cap of $179.52 billion, a P/E ratio of 18.51, a P/E/G ratio of 5.10 and a beta of 1.63. The company has a quick ratio of 1.61, a current ratio of 2.37 and a debt-to-equity ratio of 0.54. Qualcomm Incorporated has a twelve month low of $121.99 and a twelve month high of $259.92.
Qualcomm (NASDAQ:QCOM – Get Free Report) last released its earnings results on Wednesday, April 29th. The wireless technology company reported $2.65 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.56 by $0.09. The firm had revenue of $10.60 billion for the quarter, compared to analysts’ expectations of $10.59 billion. Qualcomm had a return on equity of 42.11% and a net margin of 22.31%.The business’s revenue for the quarter was down 3.5% on a year-over-year basis. During the same quarter in the previous year, the business posted $2.85 earnings per share. Qualcomm has set its Q3 2026 guidance at 2.100-2.300 EPS. On average, sell-side analysts forecast that Qualcomm Incorporated will post 7.97 EPS for the current fiscal year.
Qualcomm Announces Dividend The business also recently declared a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, September 3rd will be issued a dividend of $0.92 per share. The ex-dividend date is Thursday, September 3rd. This represents a $3.68 annualized dividend and a dividend yield of 2.2%. Qualcomm’s dividend payout ratio is 40.00%.
Qualcomm Company Profile (Free Report)
Qualcomm Incorporated is a global semiconductor and telecommunications equipment company headquartered in San Diego, California. Founded in 1985, the company is known for its development of wireless technologies and for playing a central role in the evolution of digital cellular standards, including CDMA and subsequent generations of mobile standards. Qualcomm’s business combines the design and sale of semiconductor products with a patent licensing program for wireless technologies and related intellectual property.
The company’s product portfolio includes system-on-chip (SoC) platforms marketed under the Snapdragon brand, cellular modem and RF front-end components, connectivity solutions for Wi‑Fi and Bluetooth, and processors and platforms aimed at automotive, IoT, networking and edge-computing applications.
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Few stocks have tested investor patience like Qualcomm Inc. NASDAQ: QCOM this summer. After hitting a high at the end of May, the chip giant gave back over 30% of its value through last Friday's close, unwinding much of a rally that had looked like the start of something far more durable.
Qualcomm Today
$170.32 -1.46 (-0.85%)
As of 07/20/2026 04:00 PM Eastern
52-Week Range$121.99▼
$259.92Dividend Yield2.16%
P/E Ratio18.51
Price Target$219.76
What makes the slide so frustrating for the bulls is that it has come despite so many recent bullish updates. Qualcomm used its June Investor Day to double its fiscal 2029 non-handset revenue target and lay out a credible data center strategy with blue-chip customers already signed up. That was arguably the most consequential update in the company's recent history, and yet the stock has gone backward ever since.
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With Qualcomm's next earnings report due July 29, the disconnect raises the question: has the market been justified in sending shares back to 2021 levels, or has it overreacted and created a golden entry opportunity?
Why the Sell-off Doesn't Make SenseThe core of the bullish argument is straightforward. Qualcomm is still being valued largely as a legacy handset chipmaker, even though the company has spent the past year methodically building something quite different underneath.
Last month’s Investor Day made that ambition explicit, with a doubled non-handset revenue target underpinned by a data center business targeting billions in revenue by the end of the decade, alongside meaningful growth ambitions in its automotive and internet of things (IoT) units.
Add in the string of acquisitions Qualcomm has made to bolster its go-to-market offerings, and this starts to look like a company that has been quietly assembling the pieces for a real transformation.
However, the market isn't buying it. But the gap between what Qualcomm says it will become and how investors price it today is precisely where the best opportunity may lie.
The Bear Case Deserves a HearingThe skeptics have some fair points, and the biggest one is timing. Even the most enthusiastic supporters of the data center strategy acknowledge that meaningful revenue is a multi-year story rather than something that’ll show up in the coming quarters. Investors buying today on the strength of the pivot are being asked to wait, and markets are rarely patient.
There's also the matter of what happens to the core business in the meantime. Qualcomm still carries real customer concentration risk, with the long-flagged prospect of Apple Inc. NASDAQ: AAPL moving its modem work in-house hanging over the handset division. Margin pressure in the existing business is another concern, and it's a legitimate worry that the costs of building out the new one could weigh on profitability before the payoff arrives.
Those risks are why some analysts remain firmly on the fence. GF Securities recently initiated coverage at Hold, acknowledging the scale of the data center opportunity while arguing that more visibility is needed into how competitive Qualcomm's offering will prove to be.
The Analyst Split Tells Its Own StoryQualcomm Stock Forecast Today12-Month Stock Price Forecast:
$219.76
29.03% Upside
Hold
Based on 38 Analyst Ratings
Current Price$170.32High Forecast$300.00Average Forecast$219.76Low Forecast$120.00Qualcomm Stock Forecast Details
That caution, however, sits alongside a notably more bullish view from TD Cowen, which reiterated its Buy rating on Qualcomm this past week and lifted its price target to $225, implying roughly 30% upside from current levels.
The divergence between those two positions captures the entire debate.
The bears are focused on the next few quarters, where handset dynamics and uncertainty around its long-term pivot dominate.
The bulls are focused on the next few years, where the data center business either delivers on its targets or it doesn't. Both can be right at once, which helps explain why the stock has been so volatile.
What the July 29 Report Needs to DeliverAll of which brings the focus squarely onto the company’s upcoming earnings report. The headline numbers will matter, but the commentary around them will matter much more, and there are a few specific things worth listening for.
The most important update is on the data center roadmap, particularly customer traction and how management frames the timeline for revenue to start landing. Concrete progress there would go a long way toward closing the credibility gap that has opened up since Investor Day. Beyond that, watch for evidence that Qualcomm’s diversification story is actually offsetting handset concentration, and for any commentary on how its margin profile is expected to evolve as the mix shifts.
Get those right, and a stock that has fallen 35% while its long-term story arguably improved could start to look badly mispriced. Fall short, and the market's skepticism about the ongoing pivot will only strengthen.
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Qualcomm (NASDAQ:QCOM | QCOM Price Prediction) trades at $170.61 as of the July 16 close, down 20.3% over the past month after a sharp June rally faded. Our 24/7 Wall St. price target for Qualcomm is $260.52, implying 52.7% upside over the next 12 months. The recommendation is buy at a 90% confidence level.
24/7 Wall St. Price Target Summary Metric Value Current Price $170.61 24/7 Wall St. Price Target $260.52 Upside 52.7% Recommendation BUY Confidence Level 90% How QCOM Got Here: A Volatile Round Trip Qualcomm has round-tripped dramatically. Shares hit a 52-week low near $121.54 in March, then rallied to $258.96 high after the June 24 Investor Day, where management doubled its 2029 non-handset revenue target to $40 billion and set a $15 billion AI data center sales goal. That rally has faded, leaving the stock roughly flat year to date at +0.77%.
Fundamentals remain healthy. Q2 FY26 revenue was $10.60 billion and non-GAAP EPS came in at $2.65, meeting expectations on the top line and beating by 3.67% on the bottom.
Automotive hit a record $1.326 billion, up 38% YoY, while handsets fell 13% on memory supply constraints and Chinese OEM channel drawdowns. Polymarket traders assign an 87% probability that Qualcomm beats its next earnings report on July 29.
The Case for $270+ The bull thesis rests on Qualcomm becoming a credible third player in hyperscaler custom silicon. CEO Cristiano Amon confirmed a custom silicon engagement with a leading hyperscaler is on track for initial shipments in the December quarter.
Automotive is guided to 50% YoY growth in Q3, exiting FY26 at $6 billion+ run rate. Analyst consensus target sits at $222.73, but our bull-case scenario points to $269.05 if the data center ramp lands cleanly and China handsets bottom on schedule.
What Could Go Wrong The bear case starts with customer concentration. Qualcomm expects only 20% share of Apple phones launching fall 2026, with no relationship beyond that. Handset revenue fell 13% YoY, and Q3 FY26 guidance calls for a step-down to $9.2B-$10B in revenue and $2.10-$2.30 EPS.
Recent insider activity has skewed toward net selling across 55 transactions. Operating income fell 26% YoY largely on the memory cycle, and Amon has said the June quarter should mark the bottom for Chinese handset revenue. Our bear-case downside target is $215.18, still meaningfully above today’s price.
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How Qualcomm Compares to NVIDIA and Broadcom NVIDIA (NASDAQ:NVDA) trades at a P/E of roughly 42, with Q1 FY27 data center revenue of $75.25 billion, up 92% YoY. Qualcomm’s P/E near 32 and forward multiple in the low teens looks cheap in that context, though NVIDIA’s 55.6% net margin is in a different league.
Broadcom (NASDAQ:AVGO) is the closer analog, already selling custom AI accelerators to hyperscalers with Q2 FY26 AI semiconductor revenue of $10.80 billion, up 143% YoY, and Q3 guidance calling for $16 billion in AI semis alone.
Broadcom’s $1.78 trillion market cap reflects the multiple investors assign to that model. Qualcomm capturing even a fraction of the same rerating would justify our $260 target.
Weighing the Setup Into July 29 Earnings My 24/7 Wall St. price target of $260.52 stands, with a buy recommendation at 90% confidence. At an implied P/E near 14x on $15.27 forward EPS, Qualcomm is priced for stagnation while management just doubled the 2029 non-handset revenue target.
The key catalysts to watch are whether July 29 earnings confirm the Chinese handset bottom and reiterate hyperscaler custom silicon timing. A further push-out of data center shipments into 2027 would undermine the thesis.
Qualcomm Price Prediction 2026-2030 Year 24/7 Wall St. Price Target 2026 $215 2027 $260 2028 $329 2029 $415 2030 $523 These projections assume Qualcomm executes on its data center ramp and Automotive continues content-per-vehicle expansion. Meaningful upside or downside could come from Apple modem timing, China trade friction, or hyperscaler win rates.
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SAN DIEGO--(BUSINESS WIRE)--Qualcomm Incorporated (NASDAQ: QCOM) today announced a quarterly cash dividend of $0.92 per common share, payable on September 24, 2026, to stockholders of record at the close of business on September 3, 2026.About QualcommQualcomm is a global computing leader at the center of the AI era, enabling intelligence to scale from the most personal devices to large-scale infrastructure. Building on more than four decades of innovation, we develop platforms and solutions that.
If you're looking for the next hot AI stock, you may want to give Qualcomm (QCOM 0.06%) a closer look. It has trailed most of the high-flying chipmakers with a measly 28% return over the past five years, but a financial turnaround is starting to take shape.
The stock's current valuation suggests it will continue to deliver uninspiring results, but recent press releases challenge that view.
Image source: Getty Images.
Qualcomm is positioning itself for a multiyear tailwind Although most of Qualcomm's revenue has historically come from smartphones, the company is expanding quickly into chips for AI data centers and humanoid robots. Qualcomm's wearables-specific Snapdragon ARI Gen 1 processor also powers Meta Platforms' smart glasses, which could become the next smartphone.
Any of those catalysts can reinvigorate the sleepy stock, which posted a 3% year-over-year revenue decline in its fiscal 2026 second quarter. While the mainstream demand for AI glasses and humanoid robots remains to be proven, data center chips continue to fly off the shelves.
These developments prompted Qualcomm to more than double its fiscal 2029 non-handset revenue target to $40 billion. That's slightly less than the company's $44 billion in fiscal 2025 revenue. However, non-handset revenue only made up $16.5 billion in total fiscal 2025 revenue.
Today's Change
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Current Price
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178.00
The valuation is extremely cheap If you compare Qualcomm to other AI chipmakers like Nvidia and Advanced Micro Devices, it is extremely undervalued. The stock trades at a 20 P/E ratio and a 0.58 PEG ratio, both lower than those of the previously mentioned chipmakers.
Of course, Nvidia and Advanced Micro Devices are both posting much higher revenue and net income growth rates. Qualcomm has been losing market share in recent quarters, as revenue and operating profits have declined.
Qualcomm's valuation makes sense if it continues to post its current numbers. Its handset business accounted for more than two-thirds of total revenue and was down 13% year over year.
That may change soon. Apple has been posting higher revenue growth rates in recent quarters, with new iPhone models doing the heavy lifting. Higher iPhone sales translate into more revenue for Qualcomm, but that's not where the compelling long-term opportunities reside.
The immediate story is how quickly Qualcomm can bring its AI chips to market. That's the path to meaningful revenue growth rates that can make Qualcomm's cheap valuation look dirt cheap. If Qualcomm does well with its AI chips, then it will have an easier path to expanding into humanoid robots. Its good positioning with Meta Platforms already makes it a favorite for AI glasses, assuming that industry takes off and becomes a mainstream success.
Marc Guberti has positions in Apple. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Nvidia, and Qualcomm. The Motley Fool has a disclosure policy.
I am upgrading Qualcomm (QCOM) to a buy, citing its data center pivot and accelerating automotive segment as key growth drivers. QCOM targets doubling non-handset revenue to $40B by FY29, with data center and Automotive momentum offsetting Apple modem business loss. Intrinsic value is estimated at $220 per share, making QCOM attractively valued at a 23% discount after a recent 31% share price decline.
SAN DIEGO--(BUSINESS WIRE)--Qualcomm Incorporated (NASDAQ: QCOM) today announced that it will publish the Company's financial results for its third quarter of fiscal 2026 on Wednesday, July 29, 2026, after the close of the market on the Company's Investor Relations website, at https://investor.qualcomm.com/financial-information. The earnings release will also be furnished to the Securities and Exchange Commission (SEC) on a Form 8-K, which will be available on the SEC website at http://www.sec.g.
In the latest close session, Qualcomm (QCOM - Free Report) was down 3.2% at $178.10. This move lagged the S&P 500's daily gain of 0.38%. On the other hand, the Dow registered a gain of 0.02%, and the technology-centric Nasdaq increased by 0.9%.
The stock of chipmaker has fallen by 16.68% in the past month, lagging the Computer and Technology sector's loss of 1.5% and the S&P 500's gain of 1.27%.
The upcoming earnings release of Qualcomm will be of great interest to investors. It is anticipated that the company will report an EPS of $2.21, marking a 20.22% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $9.7 billion, showing a 6.46% drop compared to the year-ago quarter.
QCOM's full-year Zacks Consensus Estimates are calling for earnings of $10.77 per share and revenue of $42.67 billion. These results would represent year-over-year changes of -10.47% and -3.32%, respectively.
Investors should also note any recent changes to analyst estimates for Qualcomm. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.06% lower within the past month. Qualcomm presently features a Zacks Rank of #3 (Hold).
Looking at valuation, Qualcomm is presently trading at a Forward P/E ratio of 17.09. For comparison, its industry has an average Forward P/E of 45.9, which means Qualcomm is trading at a discount to the group.
Meanwhile, QCOM's PEG ratio is currently 4.05. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Electronics - Semiconductors industry stood at 1.75 at the close of the market yesterday.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 43, positioning it in the top 18% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow QCOM in the coming trading sessions, be sure to utilize Zacks.com.
Qualcomm (QCOM - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this chipmaker have returned -10.7% over the past month versus the Zacks S&P 500 composite's +4.3% change. The Zacks Electronics - Semiconductors industry, to which Qualcomm belongs, has gained 7.2% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Qualcomm is expected to post earnings of $2.21 per share for the current quarter, representing a year-over-year change of -20.2%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.6%.
The consensus earnings estimate of $10.77 for the current fiscal year indicates a year-over-year change of -10.5%. This estimate has changed -0.1% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $10.96 indicates a change of +1.8% from what Qualcomm is expected to report a year ago. Over the past month, the estimate has changed +1%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Qualcomm is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Qualcomm, the consensus sales estimate of $9.7 billion for the current quarter points to a year-over-year change of -6.5%. The $42.62 billion and $43.55 billion estimates for the current and next fiscal years indicate changes of -3.4% and +2.2%, respectively.
Last Reported Results and Surprise HistoryQualcomm reported revenues of $10.6 billion in the last reported quarter, representing a year-over-year change of -2.2%. EPS of $2.65 for the same period compares with $2.85 a year ago.
Compared to the Zacks Consensus Estimate of $10.62 billion, the reported revenues represent a surprise of -0.19%. The EPS surprise was +3.11%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates just once over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Qualcomm is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Qualcomm. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
On Episode 438 of the Retire SMART Podcast, titled “Political Insider Trading,” the host laid out a frustration that cuts across party lines: “I’d go to jail if I traded on inside information. I’d lose my license. I’d get fined. Yet Congress does this all the time.”
The numbers behind that frustration are hard to wave away.
The episode cited an analysis of publicly disclosed congressional stock trades. it found that 56% of trades, or 6,170 of 11,016 total purchases over 16 months, involved companies in industries or sectors those same members were about to vote on. The marquee example was Representative Ro Khanna of San Jose, California. Khanna is described as “the most active trader in Congress,” with more than 4,900 stock trades in the past year. And a net worth that grew from roughly $800,000 when he first ran for office to over $30 million.
What the Latest Filings Actually Show The pace has not slowed. Between March 31 and July 2, 2026, House members filed 84 trades. The most recent transaction is dated June 16, 2026. Representative Daniel Meuser of Pennsylvania filed five separate partial sales of NVIDIA (NASDAQ: NVDA | NVDA Price Prediction) stock during that window. The chipmaker has remained central to every AI export-control debate on Capitol Hill.
Representative Sara Jacobs, who sits on the House Armed Services and Foreign Affairs Committees, disclosed a $500,001 to $1,000,000 partial sale of QUALCOMM (NASDAQ: QCOM) stock on May 6, 2026. The chipmaker is deeply entangled in the same semiconductor and China export-policy fights that those committees oversee. Representative Chip Roy of Texas reported a $100,001 to $250,000 partial sale of Atlas Energy Solutions (NYSE: AESI) on May 13, 2026. The company is a Texas frac-sand producer directly exposed to federal energy and public-lands policy.
The STOCK Act permits lawmakers up to 45 days to disclose. Meuser’s May 27 sale was not filed until July 2, a 36-day gap. Jacobs’s much larger Qualcomm trade cleared in 14 days. By the time the public sees the trade, the associated vote is often already in the rear-view mirror.
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The Nebraska Reform Push The podcast highlighted a reform effort out of Nebraska. Senator Pete Ricketts introduced the Stop Insider Trading Act in the Senate, and Senator Deb Fischer signed on as a cosponsor in March 2026. The House companion, carried by Chairman Bryan Steil of the Committee on House Administration, would prohibit members, spouses, and dependent children from purchasing individual publicly traded stocks. Diversified funds and qualified blind trusts would still be permitted.
Dozens of similar bills have piled up in the 119th Congress. The host’s plea to “stop this left versus right” framing and apply “logic and common sense” captures why the issue keeps surviving election cycles even when the legislation stalls in committee.
Using the Data as an Investor Signal For individual investors, congressional trading disclosures are a public dataset worth watching. They map where regulatory attention is concentrating, even when they reveal nothing about what any given lawmaker privately knows. When a committee member repeatedly trims a position in a sector their subcommittee oversees, that is worth noting. When multiple members across parties rotate out of the same industry in the same month, that is worth noting.
Two practical habits: track the House Clerk disclosure portal directly rather than through second-hand summaries. Pair any political trade signal with the underlying company’s own filings. The SEC’s EDGAR system lets you line up a lawmaker’s timing against a company’s 8-K disclosures on the same days — for example, NVIDIA’s 8-K filings on EDGAR.
Reform tends to move when constituents on both sides make the same phone call. Until that happens, the disclosures themselves remain the best publicly available window into where Washington thinks the risk, and the money, is heading next.
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On July 13, 2026, we delve into the DCF analysis for Qualcomm Inc (QCOM), a company that has shown notable price performance in recent times. Over the past year
SHENZHEN, CHINA - JUNE 27: An office building bearing the Qualcomm logo is seen on June 27, 2026 in Shenzhen, Guangdong Province, China. Qualcomm Incorporated is a U.S.-based semiconductor and wireless technology company known for its mobile processors, telecommunications technologies and artificial intelligence-related products and services. (Photo by Cheng Xin/Getty Images)
Getty Images
This article was written by Doug Nathman, with research by his team at Trefis.
For a duration of three years, the AI surge left Qualcomm in the shadows.
Nvidia (NVDA) experienced significant growth. AMD increased considerably. Data center chip manufacturers seized nearly every dollar of gains driven by AI. Qualcomm (QCOM) remained focused on smartphones, constrained by a decelerating upgrade cycle and a dwindling relationship with Apple (AAPL).
This narrative may now be shifting.
Qualcomm stock has increased by approximately 50% since mid-April. This movement indicates a broader transformation. AI is transitioning from the data center and becoming integrated into the device itself. Power efficiency, connectivity, and low-latency computation, which Qualcomm has honed for decades, are emerging as the new essential elements of AI. If this transition materializes, Qualcomm stock could have a plausible trajectory to double towards $380.
Transition To Edge AIThe current AI framework relies on centralized computing, with workloads concentrated in data centers managed by firms like Nvidia. This model struggles to scale across billions of devices. Routing every inference through the cloud is expensive, slow, and energy-intensive. The upcoming phase is local inference, executing AI directly on the device. This approach is quicker, more private, and does not rely on a constant connection.
This transformation aligns directly with Qualcomm's capabilities.
For many years, Qualcomm has fine-tuned power efficiency and connectivity, which are the primary limitations defining edge AI. Its Snapdragon platforms are already integrated into smartphones, PCs, and an increasing array of vehicles. Qualcomm's automotive segment alone indicates a $45 billion design-win pipeline. Newer platforms like Dragonwing, in addition to collaborations across ecosystems such as Arduino, broaden that reach into robotics and industrial AI. Qualcomm is transitioning from simply supplying components for handsets to providing a comprehensive compute platform for connected, intelligent devices.
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Energy EfficiencyQualcomm's advantages might extend beyond smartphones and into the data center realm itself. AI expenditure is shifting focus from training to inference, which is the mechanism of utilizing trained models in real-world applications. This change is larger than it appears. Inference is anticipated to encompass two-thirds of AI computation by 2029, representing 80 to 90% of an AI system's total cost over its lifespan. Autonomous AI systems that perform tasks, engage with software, and make independent decisions will increase the demand for efficient inference hardware.
Qualcomm's chips are designed precisely for this purpose. Power efficiency and cost per query are becoming increasingly significant compared to peak performance, and this concentration is gaining importance as AI infrastructure faces actual energy constraints. Constructing a large data center can take between 12 to 24 months. Securing a high-capacity grid connection in essential U.S. markets may require 36 to 84 months. Qualcomm’s edge comes from decades spent engineering chips for smartphones, where every milliwatt is crucial. Those same design principles could help minimize the energy costs associated with operating AI workloads at scale.
The majority of AI accelerators from Nvidia and AMD depend on a specialized packaging technology known as CoWoS, which merges computing chips with high-bandwidth memory. The demand for CoWoS has significantly surpassed supply, resulting in one of the most critical bottlenecks in AI hardware manufacturing. Nvidia has allegedly secured more than half of TSMC’s CoWoS capability through 2026, forcing competitors to contend for the remaining capacity. Qualcomm circumvents this limitation completely. Its AI200 utilizes LPDDR5X memory instead of HBM, enabling it to function on a distinct supply chain and evade one of the pivotal manufacturing bottlenecks in the industry.
How Qualcomm Stock Could DoubleLet us examine the figures.
Qualcomm achieved approximately $44 billion in revenue in FY ’25, and consensus forecasts indicate about $42.6 billion in sales for FY ’26 due to the memory shortfall, which could impact device shipments and Apple’s move away from Qualcomm modems. Nevertheless, if revenue truly grows at around 15% per year, driven by AI, CPU chips, and automotive sectors, sales could soar to $65 billion by 2029. Even if we maintain net margins at about 25% (slightly above recent 12-month averages), that equates to approximately $16 billion in yearly net profit. With share buybacks likely to persist, we predict that the share count could decrease from around 1.07 billion over the last quarter to approximately 950 million by 2029. See how Qualcomm's margins compare with competitors.
This would result in an EPS of roughly $17 per share. Now, let us assess valuation. The larger semiconductor industry trades at upwards of 35x forward earnings, while Qualcomm is trading at about 17x forward earnings. [1] Even a conservative 22x multiple—which would suggest the potential AI growth narrative yet still undervalue the stock compared to high-flying peers—yields a share price of $370. That’s nearly double its current value.
The Trefis High Quality (HQ) Portfolio has consistently outperformed its market benchmark since its inception, delivering cumulative returns exceeding 105%.
AMD (AMD +0.79%) and Qualcomm (QCOM 1.52%) are fighting for the AI PC upgrade cycle, where NPUs, battery life, and on-device AI could finally push consumers and businesses to replace older laptops. The bullish case is not just faster chips. It is a potential multi-year refresh cycle that could reshape demand across the PC market.
Stock prices used were the market prices of June 29, 2026. The video was published on July 9, 2026.
Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices and Qualcomm. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
1:55pm: Micron goes on a run Micron Technology Inc (NASDAQ:MU) (Micron Technology Inc (NASDAQ:MU)) shares rose 7% on Thursday after the company announced plans to invest up to $3 billion to strengthen the U.S. semiconductor supply chain and support future manufacturing capacity.
The investment includes $500 million in strategic financing support for GlobalWafers to advance development of its GlobalWafers America 300mm raw silicon wafer manufacturing facility in Sherman, Texas.
The companies also plan to enter into a 10-year supply agreement that would provide Micron with access to additional raw silicon wafer capacity.
The news also lifted shares across the broader semiconductor sector, with Advanced Micro Devices Inc (NASDAQ:AMD, XETRA:AMD) (Advanced Micro Devices Inc (NASDAQ:AMD, XETRA:AMD), Advanced Micro Devices Inc (NASDAQ:AMD, XETRA:AMD)) gaining 7%, Qualcomm Inc (NASDAQ:QCOM, XETRA:QCI) (Qualcomm Inc (NASDAQ:QCOM, XETRA:QCI), Qualcomm Inc (NASDAQ:QCOM, XETRA:QCI)) rising 4%, Taiwan Semiconductor Manufacturing Co (ADR) (Taiwan Semiconductor Manufacturing Co (ADR) (NYSE:TSM)) advancing 3%, Broadcom Inc (NASDAQ:AVGO, XETRA:1YD) (Broadcom Inc (NASDAQ:AVGO, XETRA:1YD), Broadcom Inc (NASDAQ:AVGO, XETRA:1YD)) up 2% and Applied Materials Inc (NASDAQ:AMAT, XETRA:AP2) (Applied Materials Inc (NASDAQ:AMAT, XETRA:AP2), Applied Materials Inc (NASDAQ:AMAT, XETRA:AP2)) climbing 6%.
12:30pm: Little drama Stocks are bouncing back from yesterday’s losses, though the recovery remains cautious, according to Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.
“While the attacks in the Middle East appeared to intensify overnight, there has been little dramatic rhetoric today, leading to hopes that any renewed conflict can be avoided," Beauchamp noted.
"But the weekend is not far off, and the US has shown a preference for strikes over a weekend, leading to some caution in markets despite a stronger open for the US."
11:05am: Oil upside may be limited US crude prices have climbed about 13% since last week’s lows, testing the $75-per-barrel level and its 200-day moving average, with the possibility of a move above $80 growing, according to Ipek Ozkardeskaya, Senior Analyst at Swissquote. Brent crude briefly traded above $80 per barrel, though both benchmarks eased slightly on Wednesday as markets continued to weigh geopolitical risks.
Ozkardeskaya said the immediate upside pressure on oil may be less severe than during the early stages of the conflict, as markets have become more accustomed to disruptions around the Strait of Hormuz and the initial shock has faded. Several vessels have also continued transiting the key shipping route, while Saudi Arabia has cut oil prices for Asian buyers to support demand.
She noted that the oil market has recently shifted quickly between supply shortages and surpluses, meaning a restoration of Hormuz traffic could quickly bring supply back into balance. China’s significant reserves and cautious approach to replenishment could also limit a sharp price spike.
However, Ozkardeskaya warned that prolonged tensions could create renewed supply concerns. A sustained disruption, attacks on Gulf energy infrastructure, or further depletion of global oil inventories could quickly eliminate the existing supply cushion and push prices significantly higher.
10am: Chipmakers help Nasdaq rally continue Chipmakers and other AI stocks have led Wall Street to a positive open, with another bout of rotation back into the semiconductor sector.
The Nasdaq rolled 0.7% higher in initial trades, with the S&P 500 up 0.4%. After an initial wobble in the red, the Dow edged 0.1% higher, held back by losses in heavyweight technology and consumer names including IBM, Salesforce and Microsoft, as well as consumer giants like Coca-Cola, Disney and Procter & Gamble.
On the Nasdaq and S&P, semis dominated the leaderboard, with Lam Research, Applied Materials and KLA all jumping more than 7%.
Micron buzzed up over 6% after plans mentioned below to invest up to $3 billion in the US semiconductor supply chain, while Arm, AMD, Marvell and Western Digital also posted strong gains as the AI infrastructure trade is in investors' good books again.
8.15am: Mixed session expected as oil volatile after Iran strikes continue US stock futures pointed to another mixed Wall Street session on Thursday, as investors weighed fresh developments in the Middle East against signs that chip stocks could extend their recent rally.
Dow Jones futures were down 0.1%, while S&P 500 futures rose 0.2% and Nasdaq 100 futures climbed 0.8%.
This comes a day after the Dow fell 577 points or 1.1%, the S&P declined or 0.3% to 7,483, while the Nasdaq gained 0.2% to finish at 25,871.
Asian and European markets traded mostly higher in the early hours, with London's FTSE an exception as it was hit by a large fall for AstraZeneca on the back of a failed drug trial.
Oil prices remained volatile, as more strikes and words were exchanged between the US and Iran.
WTI crude, which topped $75 a barrel on Wednesday, briefly dropped below $72 before recovering to around $74.
The latest moves came as the US said it had struck another 90 Iranian targets, taking the total to 170 over the past 48 hours, while Iran launched retaliatory attacks on US military sites in Bahrain, Qatar and Kuwait.
President Trump was reported as saying Iran had been in touch with the US and "want to make a deal", although he questioned whether Tehran would honour any agreement.
The White House was reported by Axios to be preparing for the possibility of fighting around the Strait of Hormuz lasting days or even weeks.
Kathleen Brooks at XTB said markets were "normalizing to the latest flare up of tensions in the Middle East".
"Although the events of recent days are another sign that the path to a long-term peace will have many twists and turns, the market seems well placed to absorb the current tensions," Brooks added.
She noted that despite the angst about the Iran war, there was a rotation out of broader tech stocks and back into chip stocks.
"Ahead today, we could see a continued rally in chip stocks. SanDisk and Nvidia are pointing to further gains today, while the hyperscalers like Microsoft and Alphabet are declining in the pre-market, suggesting that the rotation within the AI trade continues," she said.
In economic data, initial jobless claims and existing home sales are scheduled.
Key Takeaways Qualcomm automotive revenues reached a record $1.33B in Q2 FY26, up 38% year over year.QCOM plans fifth-gen Snapdragon Digital Chassis shipments by FY26-end with major performance gains.Qualcomm expects automotive revenue growth to accelerate to about 50% year over year in Q3 FY26. Qualcomm Incorporated (QCOM - Free Report) is benefiting from strong traction in the automotive business. Automotive revenue reaches a record $1.33 billion in the second quarter of fiscal 2026, up 38% year over year. There are several factors driving this growth.
Growth is being fueled by its fourth-generation Snapdragon Digital Chassis, which integrates multiple vehicle technologies into one platform, including connectivity, telematics, digital cockpit and advanced driver assistance systems (ADAS). Qualcomm reported that more than 1 million vehicles are already operating using Snapdragon Ride processors for ADAS and autonomous driving. The company expects continued share gains in fiscal 2027, particularly in ADAS. It boasts a worldwide client base that includes leading automakers and technology companies like Volkswagen Group, Toyota, Hyundai Mobis, Leapmotor, Li Auto and several other OEMs.
By the end of fiscal 2026, Qualcomm plans to begin commercial shipments of its fifth-generation Snapdragon Digital Chassis. Compared to prior generations, the platform will offer 3x higher CPU performance, 3x higher GPU capability and 12x higher NPU performance.
Qualcomm’s automotive revenue exceeded an annualized run rate of $5 billion for the first time. It expects to exit fiscal 2026 at a run rate above $6 billion. Third quarter fiscal 2026 automotive revenue is expected to grow approximately 50% year over year, faster than the 38% growth reported in the second quarter.
How Are Competitors Faring?The company faces competition from NVIDIA Corporation (NVDA - Free Report) and Intel Corporation (INTC - Free Report) in this domain. NVIDIA continues to build a longer-duration growth option in automotive, robotics and other physical AI applications. In 2026, NVIDIA announced multiple automotive and mobility partnerships at the GTC 2026, with BYD, Geely, Isuzu, Nissan, Hyundai Motor Company and Kia adopting or expanding use of its DRIVE Hyperion platform to develop Level 4 and next-generation autonomous vehicles, alongside broader robotaxi ecosystem collaborations.
The acquisition of Mobileye has helped the company to rapidly penetrate the autonomous car technology market, currently dominated by the likes of NVIDIA and Qualcomm. With the buyout, Intel has gained access to Mobileye’s technologies related to cameras, in-car networking, sensor chips, roadway mapping, cloud software, machine learning and data management. This has increased its customer base and augmented its top-line growth.
QCOM’s Price Performance, Valuation and EstimatesQualcomm shares have gained 17.1% over the past year compared with the industry’s growth of 75%.
Image Source: Zacks Investment Research
Going by the price/earnings ratio, the company's shares currently trade at 17.1 forward earnings, lower than 32.39 for the industry.
Image Source: Zacks Investment Research
Earnings estimates for fiscal 2026 have remained unchanged, and those for 2027 have increased over the past 60 days.
Image Source: Zacks Investment Research
Qualcomm stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Our Qualcomm (NASDAQ:QCOM | QCOM Price Prediction) 24/7 Wall St. price target points to $258.16 over the next 12 months, implying 41.1% upside from the $182.97 close on July 7, 2026. Our recommendation is buy, with a model confidence level of 90%. After a sharp June pullback, Qualcomm’s data center pivot and automotive strength look under-priced.
Metric Value Current Price $182.97 24/7 Wall St. Price Target $258.16 Upside 41.1% Recommendation BUY Confidence Level 90% The Selloff That Set Up the Setup Qualcomm has been on a rollercoaster. Shares rallied from a March low of $129.39 to $220.81 by mid-June, then gave back 15.27% over the past month as a broad semiconductor selloff on July 7 knocked peers like AMD (NASDAQ:AMD) and Applied Materials (NASDAQ:AMAT) sharply lower. YTD, QCOM is still up 8.07%, and one-year performance sits at 18.18%.
The most recent earnings report on April 29, 2026 delivered the fourth straight EPS beat: Non-GAAP EPS of $2.65 on revenue of $10.599 billion. Handsets fell 13% YoY on memory supply constraints, but Automotive surged 38% to a record $1.326 billion. On July 6, Qualcomm unveiled the Dragonfly C1000 CPU and AI300 inference accelerator, reinforcing the data center narrative.
The Case for the Bull Scenario The bull case rides on Qualcomm’s Investor Day pivot. On June 24, management doubled its 2029 non-handset revenue target to $40B and set a $15B AI data center sales goal. Reddit sentiment spiked to 76 (bullish) the same week. Benchmark responded with a Buy rating and a $300 price target, citing data center opportunities and a possible Modular Inc. acquisition. Mizuho lifted its target to $210.
CEO Cristiano Amon confirmed hyperscaler custom silicon shipments remain on track for late calendar 2026, and Qualcomm expanded its Hugging Face partnership to reach 16 million developers. If data center revenue ramps on schedule, our bull case fair value sits at $267.31, with Benchmark’s $300 defining the stretch scenario.
What Could Go Wrong Q3 FY26 guidance calls for revenue of just $9.2B to $10B and EPS of $2.10 to $2.30, and consensus expects a 33.2% YoY EPS decline when Qualcomm reports on July 29, 2026. Insider selling has been heavy: CEO Amon disposed of 20,000 shares in early May near $180 to $185, and the CFO trimmed roughly 7,969 shares across April to June.
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Apple modem in-sourcing and China exposure remain structural risks. That said, most executive sales appear to follow Rule 10b5-1 programs tied to RSU vesting, and bulls would argue the near-term handset dip is more inventory than demand. Our bear case still lands at $213.53, above today’s price.
What to Watch Into July 29 Earnings Our 24/7 Wall St. price target is $258.16, our recommendation is buy, and my confidence is 90%. The tipping factor: even the bear case implies a positive return, and the June selloff has rebased valuation to a forward P/E of 16x. The setup strengthens if the July 29 earnings report validates sequential handset recovery and initial data center shipments.
The thesis weakens if China revenue slips further or hyperscaler timelines slip into 2027. On balance, Qualcomm looks like a rare AI infrastructure name still trading at a reasonable multiple.
Looking further ahead, here is where our model projects QCOM could trade, assuming current growth trajectories and margin expansion from the non-handset mix shift hold.
Year 24/7 Wall St. Price Target 2026 $258.16 2030 $477.30 These projections assume Qualcomm executes on its $40B non-handset target and $15B data center goal by 2029. Significant upside or downside could result from hyperscaler adoption speed or a deeper China trade rupture.
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Since the start of the AI boom in 2023, there have been several moments where the narrative around the buildout and long-term potential of this emerging technology has swung sharply from exuberance to doubt. Over the last few weeks, we appear to have entered another one of those doubt phases.
But it is important not to lose sight of how far this theme has come, not just over the last three years, but even over the last three months. In April, equities looked like they were entering a broader correction as geopolitical tensions flared and risk appetite deteriorated. Yet just weeks later, stocks found their footing and rallied aggressively.
That move was led by technology, AI-adjacent stocks, and, most notably, semiconductors. The SOXX semiconductor ETF more than doubled from those lows, while some of the biggest winners in the group, such as Micron Technology ((MU - Free Report) ), rallied more than 300% from depressed levels.
That kind of move naturally invites a reset.
Image Source: TradingView
The “Narrative Pendulum” is a concept I picked up from analyst Alex Barrow, and I think it is a useful framework for understanding this market (detailed here). The basic idea is that even when a powerful secular trend remains intact, the market’s perception of that trend can swing dramatically between extremes. In the case of AI, investors move from believing the opportunity is nearly unlimited to worrying that the entire buildout is excessive, wasteful, or unlikely to generate adequate returns.
That is where we are now. Concerns around overspending, capital misallocation, falling LLM costs, hyperscaler margins, and the ultimate return on invested capital are beginning to weigh on the AI trade. These concerns are not necessarily fatal to the long-term thesis. In fact, they are probably healthy. Periods of doubt help cool the kind of speculative enthusiasm that can drive prices almost straight higher and create a more durable base for the next leg of the cycle.
I continue to believe the AI boom has room to run, but a pause or correction here would not be surprising.
That brings me to Qualcomm ((QCOM - Free Report) ), a major player in the semiconductor industry that, until recently, has been best known as the dominant force in mobile chips. That remains a core business for the company, but smartphones are now a mature market. As a result, Qualcomm has increasingly been viewed as a slower-growth, more cyclical, and somewhat commoditized semiconductor company, not unlike how Micron was viewed in the memory space a little over a year ago.
That perception may now be changing.
A couple of weeks ago, at the company’s investor day event, Qualcomm management announced a significant pivot in the company’s strategic direction. While the company had been hinting at a larger role in AI over the last several months, the investor day made that shift far more explicit. Management unveiled a broader slate of AI-related business verticals, major hyperscaler relationships, and a much more ambitious vision for Qualcomm’s role in the AI infrastructure stack.
The key takeaway is that Qualcomm is not simply trying to enter the AI sector with one product. It is trying to position itself as a broader AI infrastructure platform.
That could include chips, connectivity, edge AI, inference capabilities, custom silicon opportunities, and data center acceleration. In other words, Qualcomm appears to be moving from being primarily viewed as a mobile-chip company to something closer to an “AI factory accelerator” — a company that helps hyperscalers and enterprise customers build, connect, optimize, and scale the infrastructure required for AI workloads.
I have many thoughts on this evolution, which I will detail more fully, but the timing of the announcement has been somewhat unfortunate in the short to medium term. Qualcomm unveiled this strategic pivot just as the semiconductor narrative began to swing from exuberance back toward skepticism. The stock initially reacted strongly to the news, but has since faded to multi-month lows.
In my view, that weakness has less to do with Qualcomm’s specific developments and more to do with the broader industry pullback. The market is currently questioning the entire AI infrastructure trade, and Qualcomm is being dragged into that reset despite potentially having just laid out one of the more important strategic transitions in its recent history.
If Qualcomm can successfully execute on this pivot, the stock may no longer deserve to trade primarily as a mature mobile-chip company. Instead, investors may begin to revalue it as a broader AI infrastructure beneficiary with exposure to hyperscalers, edge AI, data center acceleration, and next-generation compute demand.
The timing may be unfortunate, but the setup is becoming increasingly interesting.
Scope of Qualcomm’s EndeavorsThe financial targets alone show how ambitious Qualcomm’s AI pivot has become. Management is targeting $5 billion in data center revenue by fiscal 2027 and $15 billion by fiscal 2029, with the early ramp expected to come largely from custom silicon and connectivity before the company’s accelerators and server CPUs become bigger contributors.
That is a major shift for a company still mostly viewed through the lens of smartphones.
At the center of the strategy is Qualcomm Dragonfly, the company’s new data center platform. Dragonfly is not one product, but a layered portfolio that includes connectivity silicon from the Alphawave acquisition, custom silicon for hyperscalers, AI inference accelerators, and eventually Oryon-based server CPUs. In the data center, Qualcomm expects the sequence to begin with connectivity, move into custom silicon in early fiscal 2027, then AI accelerators in the second half of fiscal 2027, followed by Oryon server CPUs in fiscal 2028.
The strategic logic is built around a major shift in AI workloads. The first phase of the AI boom was dominated by training large models, where Nvidia’s GPUs and CUDA software stack remain the standard. But the next phase may be increasingly driven by inference, especially as agentic AI systems begin chaining together dozens of model calls to complete more complex tasks. That dramatically increases the number of inference requests and makes power efficiency, memory bandwidth and cost per token far more important.
This is where Qualcomm believes it has an opening.
The company’s most important technical announcement was High-Bandwidth Compute, or HBC. Rather than relying on the traditional model of pairing accelerators with stacks of high-bandwidth memory, Qualcomm is pursuing a “memory first” architecture that places compute more directly beneath the memory stack. The goal is to reduce the distance data has to travel, improve efficiency, lower power consumption and address one of the biggest bottlenecks in AI inference.
Just as important is the software announcement. Qualcomm’s acquisition of Modular may be the key to making the whole strategy work. Hardware adoption in AI is heavily dependent on the developer ecosystem, and Nvidia’s CUDA moat has made it difficult for competitors to gain meaningful share. Cristiano Amon has framed the Modular acquisition as a potential Android or Linux moment for AI infrastructure, where a more open, hardware-agnostic software layer could reduce dependence on any single vendor.
That is a powerful idea. Rather than asking customers to abandon Nvidia overnight, Qualcomm can offer a software platform that runs across Nvidia, AMD and Qualcomm silicon, while still creating a natural path toward its own accelerators over time. If it works, Modular gives Qualcomm a much more credible way to enter the AI infrastructure market than hardware alone.
The company also added customer validation to the roadmap. Microsoft is expected to deploy Qualcomm’s HBC technology in Azure, while Meta has committed to a multigenerational agreement for Qualcomm CPUs in its data centers. Qualcomm also reinforced the software story through a partnership with Hugging Face, giving developers a path to deploy open models across Qualcomm platforms.
Finally, Qualcomm’s connectivity expertise may be one of its most underappreciated advantages. AI data centers are increasingly constrained not only by compute and memory, but by the ability to move massive amounts of data across racks and clusters. Through Alphawave, Qualcomm now has high-speed connectivity assets that are already generating revenue, giving Dragonfly a current revenue stream while the broader AI platform develops.
Execution risk remains significant. Qualcomm is entering a crowded market with powerful incumbents, and several of the most important products will not reach commercial scale until fiscal 2027 or fiscal 2028. But the scope of the announcement is hard to dismiss. Qualcomm is not simply adding AI exposure. It is attempting to build a full data center platform around the economics of inference, where power efficiency, memory bandwidth, custom silicon, software openness and connectivity may become increasingly important competitive advantages.
Image Source: Qualcomm
Qualcomm’s Auto Execution ExtrapolatedFull disclosure, going into Qualcomm’s Investor Day, I had my doubts about the company’s foray into the AI data center buildout.
The technical capability was never really the question. Qualcomm has long been one of the most sophisticated chip designers in the world, with deep expertise in power efficiency, connectivity, system integration and edge computing. The bigger question was whether the company was simply too late. In a market already dominated by Nvidia, increasingly targeted by AMD and aggressively pursued by hyperscalers’ own internal silicon teams, it was fair to wonder whether Qualcomm could carve out a meaningful position.
But the more I look at the strategy, the more compelling it becomes.
Qualcomm is not making a single bet on one AI chip. It is taking a multi-pronged approach across connectivity, custom silicon, AI inference accelerators, server CPUs and software. That gives the company multiple ways to win. Some pieces of the portfolio may lag expectations, and that would not be surprising given the scale of the undertaking. But if even one or two segments meaningfully outperform, the overall opportunity could still become material.
I view the entire project almost as a strategic experiment. Qualcomm is putting several products into the market, testing where hyperscaler demand is strongest, and positioning itself around the areas where AI infrastructure is most likely to evolve next. Management may not describe it that way explicitly, but I think it is the right approach. The AI data center market is still young, and the economics are changing quickly. Rather than trying to predict the entire future with one product, Qualcomm is building a platform broad enough to adapt as the market develops.
That approach becomes more credible when viewed through the lens of Qualcomm’s recent success in automotive.
News from the automotive segment can get lost when management is announcing something as exciting as AI data center infrastructure, but the execution there may be the best model for what Qualcomm is trying to do now. The automotive business did not emerge overnight. Qualcomm entered through connectivity, expanded into the digital cockpit, and then moved deeper into advanced driver assistance and broader vehicle compute.
That layered strategy has worked. Automotive has quickly grown into one of Qualcomm’s most important non-handset businesses, crossing a $5 billion annualized revenue run rate in fiscal Q2 2026, with management expecting to exit fiscal 2026 above a $6 billion run rate. That is no longer a side project. It is becoming a real business line and a meaningful proof point for Qualcomm’s diversification strategy.
The parallel to AI infrastructure is important. In automotive, Qualcomm did not need to own the entire car to create value. It needed to identify the parts of the vehicle where compute, connectivity and software were becoming more important, then expand its content over time. In data centers, the same logic may apply. Qualcomm does not need to displace Nvidia across the full AI stack to succeed. It needs to find the areas where its advantages matter most.
That is why the inference-first focus is so important. Qualcomm is not trying to win yesterday’s AI infrastructure battle. It is trying to position itself for the next phase of the market, where power efficiency, memory bandwidth, connectivity and cost per token become more important as AI workloads scale from training into large-scale inference. Those are exactly the types of engineering problems Qualcomm has spent decades solving.
This does not eliminate execution risk. The data center market is larger, faster moving and more competitive than automotive. Nvidia’s ecosystem is entrenched, hyperscalers are increasingly building their own chips, and Qualcomm still has to prove that its roadmap can translate into commercial deployments at scale.
But automotive shows that Qualcomm can execute this type of transition. It can move beyond handsets, build a platform in an adjacent market, expand its content over time and convert long design cycles into meaningful revenue. That does not guarantee success in AI infrastructure, but it makes the plan far easier to take seriously.
For investors, that may be the key point. Qualcomm’s AI data center strategy should not be judged only as a late attempt to chase Nvidia. It should be viewed as the next test of the same diversification playbook that is already working in automotive. If the company can repeat even part of that success, the market may be underestimating how different Qualcomm’s business could look over the next several years.
Qualcomm Stock Breaks DownThe technical picture in QCOM stock offers a more tactical view of the setup.
Back in May, the stock rerated significantly higher after the company teased a major hyperscaler deal. From there, it built out a broad consolidation pattern, but since the full announcement, the stock has traded lower. Over the last week, QCOM broke below a key level of support, mirroring the broader weakness across the semiconductor sector.
Technical analysis does not provide reliable forecasting ability on its own, but it can show where large orders have left footprints. That is essentially what a “level” represents: an area where a meaningful amount of shares have changed hands and where buyers or sellers have previously shown up.
For now, QCOM remains below that breakdown level, and the near-term downtrend appears intact. That makes the stock more difficult for traders looking for a clean short-term entry. But at roughly 17x forward earnings, and with a potentially much larger long-term AI infrastructure opportunity beginning to take shape, the setup may be more attractive for investors looking for a bigger multi-year win rather than traders trying to capture the next short-term move.
The earnings revision picture may also supports a more patient view. Qualcomm currently has a Zacks Rank #3 (Hold), reflecting earnings estimates that have been relatively flat. That means analysts are not aggressively raising expectations yet, but they also are not cutting estimates in a meaningful way. In the context of a major strategic pivot, that leaves room for upside if management begins converting these announcements into visible revenue opportunities.
If revisions start to move higher, that could become an important bullish catalyst. A pickup in estimate momentum would signal that analysts are beginning to underwrite the AI data center opportunity more directly into their models, rather than treating it as a longer-dated optionality story.
Ultimately, the next major move in QCOM stock appears heavily tied to the broader semiconductor cycle. There may still be downside ahead over the next month if the group continues to unwind. But when the narrative pendulum finally bottoms and the market begins to lift the AI infrastructure theme again, Qualcomm could emerge with a much stronger story than it had in prior cycles.
The stock has broken down technically, but the business may be breaking out strategically.
Image Source: TradingView
Bottom Line on Qualcomm StockQualcomm’s AI data center strategy is still early, and execution risk remains high. The company is entering a crowded market, several key products are still years from scale, and the stock remains caught in the broader semiconductor pullback.
But the announcement changes the long-term story. Qualcomm is no longer just a mature mobile-chip company looking for incremental growth. It is attempting to build a broader AI infrastructure platform across inference, connectivity, custom silicon, software and power-efficient compute.
For now, the technical setup is weak and earnings revisions remain flat, which supports the Zacks Rank #3 (Hold). But that also leaves room for upside if analysts begin raising estimates as AI data center revenue becomes more visible.
In the near term, QCOM may still trade with the broader semiconductor group. Over the next several years, however, the bigger question is whether Qualcomm can turn this roadmap into a real second growth engine.
The stock is not without risk, but the setup is becoming much more interesting.
Qualcomm (QCOM - Free Report) closed at $182.97 in the latest trading session, marking a -1.88% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.45%. Elsewhere, the Dow lost 0.25%, while the tech-heavy Nasdaq lost 1.16%.
Shares of the chipmaker have depreciated by 14.37% over the course of the past month, underperforming the Computer and Technology sector's gain of 0.38%, and the S&P 500's gain of 2.14%.
The upcoming earnings release of Qualcomm will be of great interest to investors. On that day, Qualcomm is projected to report earnings of $2.21 per share, which would represent a year-over-year decline of 20.22%. Alongside, our most recent consensus estimate is anticipating revenue of $9.7 billion, indicating a 6.46% downward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.77 per share and a revenue of $42.72 billion, signifying shifts of -10.47% and -3.21%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Qualcomm. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.06% fall in the Zacks Consensus EPS estimate. Qualcomm presently features a Zacks Rank of #3 (Hold).
Looking at its valuation, Qualcomm is holding a Forward P/E ratio of 17.32. For comparison, its industry has an average Forward P/E of 49.38, which means Qualcomm is trading at a discount to the group.
It is also worth noting that QCOM currently has a PEG ratio of 4.1. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 1.87 based on yesterday's closing prices.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 41, finds itself in the top 17% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Americké akciové indexy se po prodlouženém víkendu, kdy ještě doznívají sváteční konfety, pohybují v kladném teritoriu v čele s technologickým Nasdaqem, který přidává bezmála 1,3 %, širší index S&P500 pak posiluje o 0,7 %. Kosmetický zisk 0,05 % si připisuje též tradiční index Dow Jones.
K růstu se po korekci v minulém týdnu vrátily polovodiče. Referenční Philadelphia SE Semiconductor index zpevňuje téměř o 4 % a sektor informačních technologií jednoznačně dominuje dnešnímu odvětvovému růstu v rámci S&P500 se ziskem 2 %. Jim sekundují komunikační služby (+0,9 %). Naopak sektor zbytných statků, zdravotnictví a utilit vykazuje více než 1% ztrátu.
Po sérii nových historických maxim z prvního pololetí přijde již brzy další test robustnosti trhu v podobě výsledkové sezony. Zejména volatilní polovodičový sektor v poslední době ukazuje, že prostor pro zklamání je omezený. Reportovací období pomyslně odstartují příští úterý přední americké banky.
Smíšeným vývojem dnes prochází dluhopisy. Zatímco kratší maturity lehce zpevňují, delší splatnosti naopak mírně ztrácí. Výnos 10letého vládního bondu se drží těsně nad hladinou 4,48 %. Drahé kovy vykazují ztráty. Zlato odepisuje 0,6 % na 4152 USD/oz, stříbro oslabuje o 1 % na 61,8 USD/oz.
V energetickém sektoru se nedaří ropě, která se obchoduje slabší o 0,6 % na 68,3 USD/barel, zemní plyn naopak přidává 0,9 % na 3,23 USD/mmbtu.
Na korporátní úrovni S&P500 konstituentů si nejlepší výsledek připisují akcie výrobce procesorů a AI akcelerátorů, spol. AMD (AMD +7,9 %) po zvýšeném cíli od Goldman Sachs na 640 z předchozích 450 USD při trvajícím poptávkovém momentu v oblasti AI. Nejhorší výsledek pak registruje prodejce náhradních autodílů, spol. O’Reilly (ORLY -7,2 %) po zprávách o akvizičním zájmu převzít konkurenta NAPA Auto Parts, divize spol. Genuine Parts (GPC), při hotovostní nabídce za více než 10 mld. USD. Nedaří se ani dalšímu z prodejců auto komponent, spol. Autozone (AZO -6,1 %).
Z dalších zajímavých korporátních zpráv pak doplňme oznámení Microsoftu (MSFT -1,2 %) o propuštění 4800 zaměstnanců (2,1 % pracovníků). V polovodičovém segmentu potěšil investory Broadcom (AVGO +4,2 %) po prodloužení obchodní spolupráce s Applem (AAPL) do roku 2031.
Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Informační technologie +1,9 % Zbytná spotřeba -1,5 % Sektor komunikací +1 % Zdravotní péče -1,3 % Nezbytná spotřeba +0,8 % Utility -1,2 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Advanced Micro Devices (AMD) +7,9 % O'Reilly Automotive (ORLY) -7,2 % Arista Networks (ANET) +7,7 % AutoZone (AZO) -6,1 % VERTIV HLD A O (VRT) +6,7 % Constellation Brands (STZ) -5,7 % Tesla (TSLA) +6,3 % Tractor Supply (TSCO) -4,9 % QUALCOMM (QCOM) +6,3 % BUILDR FIRST O (BLDR) -4,4 % Zdroj: Reuters
The artificial intelligence (AI) revolution has so far been dominated by data center service providers. But the next phase is shifting dramatically toward the edge. Billions of devices -- from smart phones, wearable tech, and the Internet of Things (IoT) -- are expected to run intelligent agents that perceive, reason, and act locally rather than constantly outsourcing workloads to the cloud.
Qualcomm (QCOM +5.73%) is uniquely positioned to capture this wave. The company's aggressive push into new AI-enhanced devices and a surprisingly attractive valuation profile make the case for why Qualcomm stock could deliver the kind of multibagger returns investors have seen from other infrastructure titans in the AI chip space.
Image source: Getty Images.
Jensen Huang says buy Qualcomm stock Last month, Nvidia CEO Jensen Huang traveled to Seoul, South Korea, for a multi-day visit focused on forging AI partnerships. During discussions about the future of AI-powered smartphones and edge computing, Huang directly complimented Qualcomm.
Huang stated that Nvidia is "not incredibly good at mobile devices" and doesn't necessarily need to be because Qualcomm is "doing such a good job." Huang went further by telling investors plainly: "Buy their stock. It's good."
The moment was notable not just for the respect of Qualcomm's expertise in on-device AI, but because it came from the undisputed leader of the AI chip boom. Huang's comments come at a time when most investors still associate AI infrastructure almost exclusively with graphics processing unit (GPU) clusters.
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Qualcomm's role is expanding across the AI stack Qualcomm's strengths are in designing highly integrated system-on-chips that combine central processing units (CPUs), GPUs, and neural processing units (NPUs) optimized for battery-constrained environments. This architecture is becoming increasingly critical as AI applications move beyond chatbots to agentic systems. Autonomous agents are developed to operate continuously across phones, wearables, cars, and more with minimal latency.
In mid-June, Qualcomm CEO Cristiano Amon told reporters on CNBC that the company is currently working on more than 40 designs for new AI-powered devices. Amon emphasized that AI agents are the "new apps," and a broader suite of personal devices will serve as always-available interfaces rather than the smartphone alone.
In late June, Qualcomm announced an agreement to supply data center CPUs to Meta Platforms. The first product, dubbed Dragonfly C1000, is scheduled for production in 2028 and will support Meta's expanding AI compute demands. Working with Meta diversifies Qualcomm beyond its roots in mobile devices and places the company directly inside hyperscaler infrastructure stacks.
While cloud GPUs excel at training generative models, inference deployments happening across consumer electronics, vehicles, and factory floors require purpose-built silicon. Qualcomm's low-power, always-connected architecture provides the company with a competitive advantage over general-purpose chip designers.
Is Qualcomm stock a buy right now? As of this writing (July 2), Qualcomm's price-to-earnings (P/E) and forward P/E multiples are hovering around 19 and 16, respectively. These multiples are modest for a company that boasts a leading position in emerging pockets of the AI ecosystem. Moreover, Qualcomm's valuation profile is especially muted when compared to many of its peers in other areas of the AI chip value chain.
QCOM PE Ratio data by YCharts.
I think Qualcomm's setup for valuation expansion is compelling. The company's new AI device designs represent product pipelines that have the potential to open new addressable markets in wearables and autonomous agents. Moreover, while the Meta relationship is still early, it provides a visible path to new server revenue over the next couple of years.
If even a fraction of the broader agentic and edge-AI opportunity materializes, Qualcomm's revenue and earnings power is positioned to expand materially throughout the AI infrastructure era. At its current valuation, the stock does not appear to be pricing in overly aggressive success across these growth vectors.
As we've seen with Nvidia, Broadcom, Micron, Sandisk, and Advanced Micro Devices, semiconductor companies that diversify into high-growth adjacent markets while also maintaining strong capital returns witness significant valuation expansion alongside earnings growth. Qualcomm's combination of product-market fit, recent high-profile validation from Huang, and a reasonable valuation profile positions the stock as one of the more asymmetric opportunities in the broader AI chip ecosystem right now.
Key Takeaways QCOM has gained 8.7% in the past year, lagging its industry and peers Broadcom and Hewlett Packard.Handset weakness, China order pullbacks and U.S.-China trade curbs continue to pressure Qualcomm.Snapdragon, AI PCs, EDGE networking and Autotalks' V2X expertise offer Qualcomm key growth tailwinds. Qualcomm Incorporated (QCOM - Free Report) has jumped 8.7% over the past year, underperforming the industry’s growth of 83%. It has lagged peers like Hewlett Packard Enterprise Company (HPE - Free Report) and Broadcom Inc. (AVGO - Free Report) . While Broadcom is up 31%, Hewlett Packard surged 93.2% over this period.
One-Year QCOM Stock Price Performance
Image Source: Zacks Investment Research
The Malaise of Demand SoftnessMuch of Qualcomm’s malaise is due to the challenging operating environment, with persistent weakness in the smartphone market and mounting margin pressures. While the company has made significant strides in diversifying beyond handsets through automotive and Internet of Things (IoT) initiatives, its core smartphone business remains a key earnings driver, leaving it vulnerable to sluggish consumer demand and industry-wide headwinds.
Qualcomm expects constrained handset revenues due to reduced chip orders and near-term uncertainty in memory supply and pricing for handset original equipment manufacturers (OEMs). Moreover, OEMs based in China are largely pulling back on new device orders and realigning their channel inventory owing to uncertain business conditions. Consequently, Qualcomm expects an adverse impact on device shipments as sell-in and sell-through growth rates realign and channel inventory levels are drawn down.
The bitter U.S.-China trade relations have added to the woes. The chip-making firm has a significant presence in more than 12 cities in China, aiming to drive advancements in semiconductors and mobile telecommunications for the larger benefit. The company has been a key supplier of chips and other related components to local smartphone manufacturers like Xiaomi, Huawei and its spin-off brand Honor. However, it appears that Qualcomm is increasingly finding it difficult to maintain its operations in China.
The U.S. Commerce Department has long imposed various trade restrictions on China, including bans on the sale of high-tech equipment, chips, components and related technologies used to develop high-end smartphones and AI-enabled chips. As Washington tightens trade restrictions, Beijing has intensified its push for self-sufficiency in critical industries. This shift poses a dual challenge for QCOM, as it faces potential market restrictions and increased competition from domestic chipmakers.
Waning Margins Pile Up PressureQualcomm's margins have declined over the years due to high operating expenses and R&D (research & development) costs. The shift in the share among OEMs at the premium tier has reduced the near-term opportunity to sell integrated chipsets from the Snapdragon platform.
In addition, Qualcomm faces stiff competitive pressures from Hewlett Packard and Broadcom. Aggressive competition from low-cost chip manufacturers and established players in the mobile phone chipset market is also likely to hurt Qualcomm's profits. Although the global smartphone market is expected to maintain its momentum over the next three to four years, a major portion of this growth is likely to come from the low-cost emerging markets, which may weigh on Qualcomm's margins.
Image Source: Zacks Investment Research
Estimate RevisionsEarnings estimates for Qualcomm for fiscal 2026 and fiscal 2027 have declined 8.9% and 7.3%, respectively, to $10.77 and $10.96 per share over the past year. The negative estimate revision reflects bearish sentiment about the stock’s growth prospects.
Image Source: Zacks Investment Research
The Key TailwindsDespite the gloom, Qualcomm envisions solid growth opportunities within the mobile space, driven by the strength of its Snapdragon portfolio. Leveraging multi-core CPUs, cutting-edge features, amazing graphics and worldwide network connectivity, Qualcomm Snapdragon mobile platforms deliver fast performance with superb power efficiency, brilliant camera capabilities and state-of-the-art security solutions. The company is also foraying deeper into the realm of AI capabilities within the laptop and desktop business with the launch of the Snapdragon X chip for mid-range AI desktops and laptops.
The company is increasingly focusing on the seamless transition from a wireless communications firm for the mobile industry to a connected processor company for the intelligent edge. Qualcomm is witnessing healthy traction in EDGE networking, which helps transform connectivity in cars, business enterprises, homes, smart factories, next-generation PCs, wearables and tablets. The company is gaining traction in the vehicle-to-everything (V2X) communication systems market with the buyout of Autotalks. With seamless access to Autotalks’ comprehensive V2X expertise, Qualcomm has been able to offer an extensive suite of automotive-qualified global V2X solutions for installation in vehicles, as well as 2-wheelers and roadside infrastructure.
End NoteWith robust automotive and Snapdragon traction, Qualcomm appears to be relatively better placed in terms of its portfolio strength. A strong emphasis on quality, diligent execution of operational plans and continuous portfolio enhancements are driving more value for customers.
However, stiff competition and softness in key end markets are likely to put pressure on the bottom-line growth. High R&D costs erode its profitability to a large extent. With downward earnings estimate revisions, the stock is witnessing negative investor sentiment. Qualcomm is facing a tough operating environment in China amid escalating tariffs, raising questions about its long-term viability plans in the communist country.
With a Zacks Rank #3 (Hold), Qualcomm appears to be treading in the middle of the road, and new investors could be better off if they trade with caution. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Tech continues to struggle with rising interest rates, and questions about the job numbers tomorrow cause concern.
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Micron looks like it’s going to open soft on Wednesday as we are likely to continue the overall consolidation after the big grind higher, and it is worth noting that the jobs report comes out on Thursday, not Friday this week, as Americans will be away from work on Friday heading into a 3-day weekend to celebrate Independence Day. The $1,000 level is an area that I think a lot of people will be watching to see if it offers support. The $1,300 level above is a bit of a target. That being said, if we do pull back, I think a bounce offers an opportunity, as it is just a continuation of this grinding channel that we’ve been in for some time.
SNDK Technical Analysis SanDisk also looks like it is going to drop right away, and now I’ll be watching somewhere between $2,000 and $1,950 for an opportunity to start buying again. I don’t have any interest in shorting, and really, at this point in time, it would not be a huge surprise to bounce around between the $1,950 level and the $2,400 level because we would have to work off the excess froth from the previous run to the upside.
Qualcomm is sitting right on support, and we’ll have to see whether or not it’s going to break down. It is worth noting that we are halfway between the 50-day EMA and the 200-day EMA indicators. This is a market that I think is possibly going to break down. If we break down below the 200-day EMA, that would be very ugly.
On the other hand, if we can turn around and recapture the 50-day EMA, I think that would show that we are seeing buying pressure come back into the market that might be sustainable. All three of these companies are dealing with higher rates as the US interest rates are jumping a bit, and that gives us a little bit of a drag.
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Chris is a proprietary trader with more than 20 years of experience across various markets, including currencies, indices and commodities. As a senior analyst at FXEmpire since the website’s early days, he offers readers advanced market perspectives to navigate today’s financial landscape with confidence.
Qualcomm (QCOM - Free Report) closed the most recent trading day at $184.79, moving -2.08% from the previous trading session. This move lagged the S&P 500's daily gain of 0.79%. Elsewhere, the Dow saw an upswing of 0.26%, while the tech-heavy Nasdaq appreciated by 1.52%.
Coming into today, shares of the chipmaker had lost 17.59% in the past month. In that same time, the Computer and Technology sector lost 4.61%, while the S&P 500 lost 1.82%.
The investment community will be paying close attention to the earnings performance of Qualcomm in its upcoming release. The company's upcoming EPS is projected at $2.21, signifying a 20.22% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $9.7 billion, indicating a 6.46% decrease compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.77 per share and revenue of $42.77 billion, indicating changes of -10.47% and -3.1%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Qualcomm should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.06% downward. Qualcomm is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Qualcomm is presently being traded at a Forward P/E ratio of 17.53. This denotes a discount relative to the industry average Forward P/E of 54.52.
Also, we should mention that QCOM has a PEG ratio of 4.15. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Electronics - Semiconductors industry held an average PEG ratio of 2.11.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 48, which puts it in the top 20% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Artificial intelligence (AI) compute workloads in data centers are now shifting toward inference. Deloitte estimates that inference workloads will account for two-thirds of AI-focused computational workloads in data centers this year, up from 50% in 2025.
This has led to a strong jump in demand for chips capable of executing inference workloads cost-effectively. Nvidia currently leads the market for AI inference chips. That isn't surprising, as the company is aggressively reducing the cost of running inference workloads with its chip systems. On the other hand, custom AI chip designer Broadcom is also witnessing phenomenal acceleration in revenue and earnings.
However, both semiconductor stocks have delivered paltry, single-digit gains this year. They have underperformed the PHLX Semiconductor Sector index, which has jumped 86% this year, by a huge margin. Their poor performance can be attributed to their valuation. Broadcom trades at an expensive 61 times earnings and 24 times sales. While Nvidia stock is significantly cheaper at 30 times earnings and looks like a bargain, its sales multiple of 18.6 is on the expensive side.
However, there is another company -- Qualcomm (QCOM 2.08%) -- which has started making a dent in the AI chip market thanks to its inference-focused chips and trades at a really attractive valuation right now. Let's see why Qualcomm stock could be one of the biggest winners in the AI inference era, potentially outperforming Nvidia and Broadcom over the next three years.
Image source: The Motley Fool.
AI is poised to significantly boost Qualcomm's data center revenue Qualcomm currently gets its revenue from selling chips for smartphones, automotive, and the Internet of Things (IoT). These three end markets comprise the company's Qualcomm CDMA Technologies (QCT) semiconductor division. It has another business segment -- Qualcomm Technology Licensing (QTL) -- through which it collects fees and royalties from customers using its intellectual property to design and manufacture wireless products.
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The QCT business is Qualcomm's bread and butter, generating 86% of its revenue in the second quarter of fiscal 2026 (which ended March 29). The company's QCT revenue fell 4% year over year in fiscal Q2 to $9.1 billion, primarily due to the weakness in the smartphone market. As a result, Qualcomm's overall revenue fell 2% year over year in fiscal Q2 to $10.6 billion.
The smartphone market is likely to remain constrained by limited memory supply and higher component costs at least until next year. However, demand for chips used to run AI workloads in data centers and edge applications is poised to grow at a healthy pace. Qualcomm has been trying to make a dent in this market for some time, and the latest update from the company suggests that it may have finally made a breakthrough.
At its recently held Investor Day 2026, Qualcomm revealed that it anticipates at least $15 billion in data center revenue by fiscal 2029. That's an impressive start for a company that's making an entry into this fast-growing niche. The company will be offering custom AI processors and inference-first chips aimed at lowering the total cost of ownership (TCO) for data center operators. Even better, the company notes it will upgrade its AI chips annually.
Qualcomm is all set to offer a broad portfolio of AI systems to customers, including liquid-cooled rack-scale servers, custom processors, connectivity solutions, purpose-built data center CPUs (central processing units), and high-bandwidth memory. What's worth noting is that it has already landed a notable customer in the form of Meta Platforms. The tech giant will deploy Qualcomm's Dragonfly C1000 server CPU in its servers starting this year. More importantly, Qualcomm and Meta have a multi-generation agreement, suggesting that the former could witness a solid long-term revenue stream.
Qualcomm CEO Cristiano Amon indicated that Meta isn't the only customer for its AI chips when he pointed out that the company is bringing its "high-performance, low-power computing into the data center, with multi-year, multi-generation agreements with leading customers." So, the company seems well-positioned to achieve its data center revenue growth target over the next three years, which could supercharge its growth.
The solid acceleration in the company's earnings will send the stock soaring Qualcomm estimates that its earnings per share could exceed $18.00 in fiscal 2029. For comparison, the company's earnings per share are on track to drop by 10% in fiscal 2026 to $10.80. So, Qualcomm's bottom line could increase at an annual rate of 18.5% for the next three years, which seems quite achievable.
Assuming Qualcomm's earnings indeed reach $18.00 per share in fiscal 2029 and it trades at 26.3 times earnings at that time (in line with the Nasdaq-100 index's forward earnings multiple), its stock price could soar to $473. That's a potential upside of 150% from current levels, suggesting that investors should consider buying this AI stock before it steps on the gas.
What's more, Qualcomm is trading at just 17 times forward earnings and 4.6 times sales. So, any step-up in Qualcomm's growth rate could be rewarded with a premium valuation, which could pave the way for greater stock price upside than I have assumed above.
ByteDance is aiming to complete the design of a new in-house central processing unit (CPU) by early next year at the latest, with plans for mass production and wider deployment in the second half of 2027, according to a South China Morning Post report citing people familiar with the matter.
The TikTok parent company is developing the chip to support its expanding artificial intelligence infrastructure as it seeks greater control over core computing hardware, the SCMP report said.
An early version of the proprietary CPU has reportedly already been used internally since late 2025, one of the sources told SCMP. However, due to strong demand for computing capacity, the tape-out stage, the final step in chip design before manufacturing, could be accelerated.
To support development and help secure foundry capacity, ByteDance is also collaborating with US chipmaker Qualcomm Inc (NASDAQ:QCOM, XETRA:QCI), according to the report.
Wedbush analysts said the report underscores growing pressure from compute shortages and rising costs, which they view as incentivising ByteDance to accelerate internal chip development efforts.
They noted that ByteDance is targeting mass production of the CPU in the second half of 2027 and may lean on Qualcomm for assistance, adding that this follows earlier reports linking the two companies on chip development.
“We certainly see the current shortage of compute (and rising pricing) as creating an incentive for ByteDance to accelerate internal efforts to build CPUs,” Wedbush wrote.
“At the same time, chip design doesn't alleviate the foundations of current supply shortfalls (fabs and raw materials) and successful design efforts to date have seemingly required multiple generations of parts, with failures at least equaling success stories,” the analysts added, according to SCMP’s cited commentary.
ByteDance is aiming to complete the design of a new in-house central processing unit (CPU) by early next year at the latest, with plans for mass production and wider deployment in the second half of 2027, according to a South China Morning Post report citing people familiar with the matter.
The TikTok parent company is developing the chip to support its expanding artificial intelligence infrastructure as it seeks greater control over core computing hardware, the SCMP report said.
An early version of the proprietary CPU has reportedly already been used internally since late 2025, one of the sources told SCMP. However, due to strong demand for computing capacity, the tape-out stage, the final step in chip design before manufacturing, could be accelerated.
To support development and help secure foundry capacity, ByteDance is also collaborating with US chipmaker Qualcomm Inc (NASDAQ:QCOM, XETRA:QCI), according to the report.
Wedbush analysts said the report underscores growing pressure from compute shortages and rising costs, which they view as incentivising ByteDance to accelerate internal chip development efforts.
They noted that ByteDance is targeting mass production of the CPU in the second half of 2027 and may lean on Qualcomm for assistance, adding that this follows earlier reports linking the two companies on chip development.
“We certainly see the current shortage of compute (and rising pricing) as creating an incentive for ByteDance to accelerate internal efforts to build CPUs,” Wedbush wrote.
“At the same time, chip design doesn't alleviate the foundations of current supply shortfalls (fabs and raw materials) and successful design efforts to date have seemingly required multiple generations of parts, with failures at least equaling success stories,” the analysts added, according to SCMP’s cited commentary.
Don McGuire, CMO of Qualcomm, spoke to Business Insider during the 2026 Cannes Lions Festival of Creativity, saying that talk of artificial intelligence in the enterprise is at a more realistic place.
"It's about humans and AI together that's really going to make it useful," McGuire said. "Not one or the other."
Don McGuire, CMO of Qualcomm, spoke to Business Insider during the 2026 Cannes Lions Festival of Creativity, saying that talk of artificial intelligence in the enterprise is at a more realistic place.
"It's about humans and AI together that's really going to make it useful," McGuire said. "Not one or the other."
Qualcomm's (QCOM 1.23%) 51% total return over the past five years looks bad if you compare it to Nvidia and Broadcom, which posted five-year returns of 920% and 720%, respectively. That gap is a consequence of Qualcomm's late entry into the artificial intelligence (AI) chip race.
But Qualcomm just shared some news that changes the entire investment thesis for the company, turning it into one of the most compelling AI stocks virtually overnight.
Image source: Getty Images.
What was the big news? Qualcomm issued a news release on June 24 that highlighted its data center strategy. It touted "multiple inflection points" it sees coming over the next three to five years. Management believes it can achieve long-term growth in the agentic AI era, and its aggressive goals reflect that.
It boosted its 2029 guidance target to $40 billion, which is almost two times higher than the previous 2029 target. Qualcomm also told investors that it is aiming for more than $15 billion in AI infrastructure revenue from data centers by fiscal 2029.
The growth is supposed to continue well beyond 2029. The news release went on to detail how data centers, robotics, industrial AI, personal AI, and agentic AI are some of the catalysts that will continue to strengthen Qualcomm's financials beyond fiscal 2029. CEO Cristiano Amon said the company is "in a strong position to capture these opportunities."
The company believes it will have a $1.7 trillion total addressable market by 2030. This market size, plus Grand View Research's projected 30.6% compound annual growth rate for the AI market through 2033, explains why investors are starting to get bullish on Qualcomm stock.
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The entry into AI is already translating into more sales Qualcomm makes most of its money selling chips for smartphones, and the saturated condition of that market has weighed on the stock for years. Revenue dipped by 3% year over year in its fiscal 2026 second quarter, and it has woefully underperformed Nvidia and Broadcom despite the fact that all three companies produce microchips.
However, thanks to its new focus on AI, Qualcomm asserts that its phase of declining revenue and profits is coming to an end. The company has already announced two partnerships to make custom silicon for leading hyperscalers, though it has not named which ones they are. Its AI inference accelerators and application-specific integrated circuits give it the potential to rapidly scale up in the industry.
It will still be a while before these shifts lead to meaningful revenue growth. For the current quarter (fiscal 2026 Q3), management is currently projecting a top line of between $9.2 billion and $10 billion, or $9.6 billion at the midpoint. That implies a 7.4% year-over-year decline from its $10.4 billion top line in the prior-year period. Meanwhile, the company has been rewarding investors with stock buybacks, which reached $5.4 billion in the first half of its fiscal 2026, with another $20 billion authorization recently announced.
The valuation is a steal The way management is talking about its AI initiatives and winning deals with hyperscalers implies revenues will start growing in the near future. Investors shouldn't expect the company to deliver 85% year-over-year growth like Nvidia or a 48% sales increase like Broadcom, but those two companies' track records demonstrate how quickly a chipmaker's trajectory can change.
The stock is trading at values that assume its AI initiatives will not be realized. Its 21.2 price-to-earnings ratio makes it far more favorably priced than Nvidia or Broadcom. It also has a price/earnings-to-growth ratio below 1, which usually indicates that a stock is undervalued.
The stock's rally may not happen right away. It may not even happen this year. However, Qualcomm has tipped off investors that material fundamental improvements will take shape in 2027 and beyond. The valuation doesn't yet reflect that possibility, and those who buy shares today will even get to collect a dividend that at the current price yields 1.8% while waiting for the market to notice.
The semiconductor sector is notorious for punishing cyclicality. When global smartphone shipments stall or supply chains bottleneck, legacy chipmakers often bear the brunt of market anxiety. This dynamic has played out recently with Qualcomm NASDAQ: QCOM, which has suffered a drawdown of more than 20% over the last 30 days.
Qualcomm Today
$192.27 +3.55 (+1.88%)
As of 10:27 AM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$121.99▼
$259.92Dividend Yield1.91%
P/E Ratio20.91
Price Target$220.45
Much of this selling pressure stems from near-term memory supply constraints affecting Chinese handset manufacturers, stalling what the market aggressively priced in as an immediate Android hardware supercycle.
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Beneath this surface-level volatility, a profound transformation is taking place. Qualcomm is integrating data center and edge artificial intelligence (AI) compute layers. By acquiring vital software infrastructure and rolling out server-grade processors anchored by hyperscaler clients, Qualcomm is actively decoupling its balance sheet from smartphone dependence to capture a massive secular tailwind in agentic AI.
Hacking the Moat: Qualcomm Upgrades Its Software CodeHardware is only as valuable as the code running on it. For years, the enterprise computing landscape has been dominated by closed software ecosystems, creating steep switching costs for developers locked into proprietary frameworks. To break this monopoly, Qualcomm orchestrated a $3.92 billion all-stock acquisition of the software infrastructure firm Modular.
Scheduled to close in the second half of 2026, this acquisition secures far more than patents; it brings visionary talent like Chris Lattner in-house. Lattner is the original architect behind foundational programming languages such as Apple's Swift. With Modular under its umbrella, Qualcomm gains complete control of the Mojo programming language and the MAX inference engine. This establishes a silicon-agnostic compute layer. Developers can write complex inference code once and run it optimized across heterogeneous compute environments, effectively neutralizing the moat that legacy graphics processing unit manufacturers used to trap enterprise clients. Lowering these switching costs is the mandatory first step for Qualcomm to take meaningful market share in the data center.
Server-Grade Horsepower: Qualcomm Upgrades the Data CenterSoftware flexibility requires raw physical horsepower to be effective. At the June 2026 Investor Day, Qualcomm management formally unveiled the Dragonfly C1000 server CPU built entirely on the custom Oryon architecture. Featuring a 250-core count, this processor is purpose-built for agentic AI orchestration. Basic generative models simply return text, but agentic AI handles complex multi-step reasoning and autonomous task execution, demanding immense uninterrupted computational throughput.
Institutional validation for this new architecture arrived immediately. Market data confirms that Meta Platforms NASDAQ: META has signed a multi-year agreement to deploy the Dragonfly C1000 in its infrastructure, with shipments scaling heavily in the second half of 2028.
Simultaneously, Microsoft Corporation NASDAQ: MSFT announced its commitment to deploying the High Bandwidth Computing architecture on its Azure cloud platform. Securing these anchor clients proves the Oryon architecture can handle frontier processing, paving a highly visible path toward Qualcomm's newly stated target of $15 billion in data center revenue by fiscal 2029.
Shrinking the Server: 2nm Nodes Spark a Hardware SupercycleThese hyperscaler deployments serve a dual purpose. They generate lucrative enterprise revenue while battle-testing the exact architecture destined for consumer pockets. The reality of modern technology is that cloud computing remains too expensive and latent for ubiquitous consumer AI applications. The true frontier is edge compute, and the Qualcomm strategy is to shrink server-grade processing power to fit directly inside a handset.
Upcoming iterations of the Snapdragon platform will migrate to the 2nm fabrication node from Taiwan Semiconductor Manufacturing Company NYSE: TSM. This physical shrinkage enables integrating massive data center-level throughput into mobile platforms without draining battery life. By equipping Android original equipment manufacturers with the raw compute necessary to run native un-tethered generative models, Qualcomm supplies the exact hardware required to trigger a massive device replacement cycle. Apple NASDAQ: AAPL currently commands a highly integrated closed ecosystem, but democratizing frontier processing across the Android landscape offers a viable vendor-neutral alternative for the rest of the global market.
High-Voltage ValuationsA grand technological vision must be supported by sound financial fundamentals. Current valuation metrics suggest the market is heavily discounting the impending diversification of revenue. Qualcomm currently trades at a trailing price-to-earnings ratio of 20x and a forward multiple of 24x. Profitability remains highly robust during this transition phase. The company commands an exceptional return on equity of 42.11% and net margins that have held steady at 22.31%.
Qualcomm outlined a definitive de-risking roadmap, projecting $40 billion in total non-handset revenue by fiscal 2029. Beyond the data center targets, this pipeline includes $10 billion in automotive computing and $8 billion in industrial robotics and the Internet of Things. The balance sheet is well-positioned to support this expansion, with a manageable debt-to-equity ratio of 0.54 and a healthy current ratio of 2.37, ensuring the Modular acquisition will not strain daily operations. Investors waiting for these enterprise revenue streams to mature are protected by a 1.95% dividend yield and a newly authorized $20 billion share repurchase program. A buyback floor of this magnitude provides substantial asymmetric downside protection, aggressively rewarding shareholders who endure near-term cyclicality.
Timing the Edge Computing UpgradeThe recent double-digit technical drawdown presents a compelling scenario for value-conscious tech investors. The options market recently revealed a spike in institutional confidence, with traders purchasing over 161,000 call options in a single session, pushing volume 29% above the daily average. Short interest remains anemic at roughly 2.5%, indicating the recent sell-off lacks structural bearish conviction.
Qualcomm Incorporated (QCOM) Price Chart for Tuesday, June, 30, 2026
Execution risk remains the primary hurdle for Qualcomm. The data center revenue targets rely on silicon that does not ship in heavy volume until late 2028. The mobile division must maintain its structural dominance in a highly competitive pricing environment to fund this aggressive expansion.
Cautious investors may prefer to monitor the successful closing of the Modular acquisition and upcoming quarterly margin stability before allocating capital. Those with a longer time horizon might consider adding Qualcomm to their watchlist as the transition from a cyclical mobile supplier to a diversified computing powerhouse takes shape.
Should You Invest $1,000 in Qualcomm Right Now?Before you consider Qualcomm, you'll want to hear this.
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Qualcomm (QCOM - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this chipmaker have returned -17.6%, compared to the Zacks S&P 500 composite's -2.9% change. During this period, the Zacks Electronics - Semiconductors industry, which Qualcomm falls in, has lost 0.7%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Qualcomm is expected to post earnings of $1.53 per share for the current quarter, representing a year-over-year change of -33.3%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.2%.
The consensus earnings estimate of $7.96 for the current fiscal year indicates a year-over-year change of -20.9%. This estimate has changed -0.1% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $8 indicates a change of +0.5% from what Qualcomm is expected to report a year ago. Over the past month, the estimate has changed +2%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Qualcomm is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Qualcomm, the consensus sales estimate for the current quarter of $9.7 billion indicates a year-over-year change of -6.5%. For the current and next fiscal years, $42.77 billion and $43.46 billion estimates indicate -3.1% and +1.6% changes, respectively.
Last Reported Results and Surprise HistoryQualcomm reported revenues of $10.6 billion in the last reported quarter, representing a year-over-year change of -2.2%. EPS of $2.65 for the same period compares with $2.85 a year ago.
Compared to the Zacks Consensus Estimate of $10.62 billion, the reported revenues represent a surprise of -0.19%. The EPS surprise was +3.11%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates just once over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Qualcomm is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Qualcomm. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Qualcomm (QCOM) may not be buying Tenstorrent after all.Tenstorrent CEO Jim Keller reportedly said the AI chip startup has not been in acquisition talks with Qu
Shares of Qualcomm Inc NASDAQ: QCOM are trading just above $200 this week, continuing to consolidate above that key psychological level, which they took so long to crack.
Qualcomm Today
$190.08 +0.69 (+0.36%)
As of 12:49 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$121.99▼
$259.92Dividend Yield1.94%
P/E Ratio20.65
Price Target$220.45
Wall Street had penciled the company's Investor Day in as a potential catalyst for the stock, with JPMorgan flagging it in advance and lifting its price target dramatically in the run-up. To say expectations were high would be putting it mildly.
The good news for investors is that the day itself didn't just meet those expectations—it blew straight through them, with management delivering a long-term outlook that fundamentally changes how investors should think about this company.
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The most eye-catching detail was a near-doubling of the fiscal 2029 non-handset revenue target from $22 billion to $40 billion. For a stock long hamstrung by its perception as a bumbling smartphone chip supplier, that's the kind of update that changes the conversation.
The Data Center BombshellThe centerpiece of the investor day was the unveiling of Qualcomm's data center strategy, and the revelation that both Microsoft Corp NASDAQ: MSFT and Meta Platforms NASDAQ: META have already signed up as early customers.
That's not the kind of social proof you get from just talking a good game. It's the kind you get from delivering technology that two of the most demanding buyers of AI infrastructure out there have decided is worth deploying in their own data centers.
Microsoft CEO Satya Nadella confirmed that Qualcomm's solutions will be going into some of its Azure data centers. At the same time, Meta CEO Mark Zuckerberg described entering "a multi-generational partnership" with the company.
Tony Pialis, who heads up the company’s data center business, put it another way, telling attendees that the company has "a pipeline that will blow your heads." In other words, investors should be getting excited.
Why This Time Could Actually Be DifferentQualcomm has had no shortage of "this is the moment" updates over the years, and investors have been understandably cautious about getting their hopes up. What makes this one feel different is the combination of named blue-chip customers, hard-currency revenue targets, and a coherent product roadmap that finally ties everything together.
In addition, the new $40 billion non-handset revenue target by fiscal 2029 is built on three pillars rather than one, which adds a layer of safety. Alongside the $15 billion data center business, automotive is set to deliver $10 billion, and Internet of Things (IoT) is projected to top $14 billion.
Each of those is a legitimate growth business in its own right, and combined, they would mean handsets representing only about a third of Qualcomm's chip revenue by the end of the decade. For a company that's spent almost its entire existence defined by its handset exposure, that's nothing short of transformational.
The Analyst Community Is Going All InQualcomm Stock Forecast Today12-Month Stock Price Forecast:
$218.03
15.12% Upside
Hold
Based on 37 Analyst Ratings
Current Price$189.39High Forecast$300.00Average Forecast$218.03Low Forecast$120.00Qualcomm Stock Forecast Details
The update has triggered exactly the kind of analyst response you'd expect for a strategic inflection point like this. Morgan Stanley upgraded the stock from Underweight to Equal-weight and raised its price target from $146 to $231, noting that Qualcomm's diversification "appears to be happening faster than we had expected." For a firm that has been carrying an outright bearish stance, that's a meaningful turn.
Then there’s the fact that JPMorgan reiterated its $265 price target, while Benchmark upped its price target to $300, a new street high. From where the stock is currently trading, that’s almost 50% in targeted upside. Could this really be the same Qualcomm from a few weeks ago?
The Risks That Still Need WatchingThe answer is yes, but to be sure, none of this means the path from here will be smooth. The handset business is expected to trend downward by next year, with Apple Inc.’s NASDAQ: AAPL revenue expected to be gone completely by 2029 as the iPhone maker moves everything in-house. That’s a multi-billion dollar reduction in handset revenue, which Qualcomm has to absorb on its way to the new targets—no mean feat.
There's also the step-up in investment required to actually capture the data center opportunity, which will likely weigh on margins in the short term as the new businesses scale. The Modular acquisition, announced alongside the Investor Day for $3.9 billion, is part of that build-out. While it should strengthen Qualcomm's AI software platform, it's another reminder that this transition won't be cheap.
But for investors looking beyond the next few quarters, this update may be remembered as the moment Qualcomm finally became a different kind of company. After years of false dawns, the data center bombshell, the doubled non-handset target, and the blue-chip customer validation, all point to a business that's finally shedding its handset skin in a way the market can actually believe.
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Many technology companies were off to the races when the AI boom first started, but Qualcomm (QCOM 2.39%) initially seemed slow to adapt.
Not anymore. The company has shifted its strategy toward artificial intelligence processors, applying its existing knowledge of edge computing to AI. It recently made a nearly $4 billion acquisition of an AI company to expand its reach for data center tech. No wonder its shares are up 66% over the past three months.
Better yet, Qualcomm's shares are still a great deal compared to the broader tech sector. Here's why it might be worth buying this AI stock right now.
Image source: Getty Images.
Qualcomm's big shift to AI Qualcomm has been busy expanding its AI footprint, and a few notable shifts make the company's AI angle intriguing.
Most recently, Qualcomm acquired the AI company Modular in an all-stock deal valued at about $4 billion. Modular makes software that can run any AI model across many different hardware platforms. It also has an AI coding language.
The purchase means Qualcomm expands its ability to benefit from growth in the AI data center infrastructure market through software. Adding the new programming language could help it compete with Nvidia (NVDA 0.86%) and its CUDA language.
Nvidia is a formidable opponent, of course, but Qualcomm is taking aim at the AI inference market, where Nvidia is vulnerable. Nvidia's graphics processing units (GPUs) have dominated the data center market for years, but tech companies are realizing that custom processors (which Qualcomm sells) can be better for AI inference and general tasks.
To help capture this market, Qualcomm just debuted its new Dragonfly C1000 CPU at its recent investor day, launching a powerful enterprise data center chip. The company is already inking deals with hyperscalers, with Meta announcing it has entered a multi-year agreement to use Qualcomm's processors in its data centers.
What's more, Qualcomm's management estimated that by fiscal 2029, the company will have more than $15 billion in AI infrastructure revenue. That's up from essentially nothing right now.
Finally, Qualcomm has been selling processors for everything from smartphones to cars for years. These chips are part of what's called edge computing, in which most processing is done on the device rather than in the cloud.
AI edge computing is likely to continue to expand as demand for advanced hardware increases. Consider that Apple, one of the world's largest hardware companies, touts on-device processing for its next-generation Siri AI software.
When considering its AI data center opportunities alongside its edge computing processors and other markets, Qualcomm's management recently said the company will have a $1.7 trillion total addressable market by 2030.
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It could be a smart move to own some Qualcomm stock There's no guarantee that all of Qualcomm's AI ambitions will pan out, of course. However, the company's stock is so inexpensive right now that it might be worth starting a new position in case things heat up for Qualcomm.
Its shares have a price-to-earnings ratio of just 21 right now, far below the tech sector average of 44. For a technology leader that's making smart moves into AI, that's quite a bargain.
Investors will need to keep a close eye on how well the company executes on its new chip deal with Meta and how much sales and earnings it actually brings in. They'll also want to keep watch to see how well Qualcomm uses its new Modular purchase to improve its expanding AI offerings.
Some of these things will take a little time to shake out, so investors should be patient as they wait to see how well Qualcomm executes on its plans. At such a low price, buying Qualcomm stock right now could allow investors to benefit from the company's big AI push.
As Qualcomm, Inc. (NASDAQ: QCOM) stock dropped to a two-month low, Wall Street analysts have signaled bullish sentiment toward Qualcomm stock over the next 12 months.
On Monday, Stacy Rasgon, an analyst at Bernstein, reiterated a ‘Hold’ rating on Qualcomm stock, according to a note sent to clients analyzed by Finbold on June 29. Rasgon set a 12-month target for QCOM stock price at $235, thereby implying a 24.08% potential upside.
On June 28, Vijay Rakesh, an analyst at Mizuho Securities, raised the 12-month target for Qualcomm price from $170 to $210. Rakesh maintained a ‘Hold’ rating on this company.
On Friday, June 26, Ingo Wermann, an analyst at DZ Bank AG, upgraded Qualcomm stock to a ‘Buy’ rating. Additionally, Wermann raised his 12-month price target from $195 to $265, which is a 39.92% potential upside.
On the same day, Thomas O’Malley, an analyst at Barclays PLC (NYSE: BCS), assigned a ‘Sell’ rating on Qualcomm stock. However, O’Malley set a 12-month price target of $245, down from $150.
As such, 32 Wall Street analysts have set an average price target of $219.14 and a rating of ‘Hold’, according to data from TipRanks.
QCOM stock forecast. Source: TipRanks Qualcomm stock price performance Wall Street analysts have issued an average Hold rating for Qualcomm stock amid the ongoing consolidation. Since early May 2026, QCOM stock price has been trapped in a choppy consolidation, currently trading at $189.39 at the time of publication.
QCOM stock price chart. Source: Finbold Nonetheless, QCOM stock price has gained over 10% year to date (YTD), thus, the company’s market capitalization is around $199.6 billion at press time. As a core AI stock, Qualcomm is well-positioned to continue growing over the coming months, bolstered by bullish price targets from analysts, as Finbold reported.
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Our Qualcomm (NASDAQ:QCOM | QCOM Price Prediction) price prediction sits well above where the sell side has landed, and that gap is the entire story. Wall Street’s consensus target of $186.50 implies downside from today’s quote.
Our model sees the opposite. The 24/7 Wall St. price target for Qualcomm is $257.53, pointing to roughly 25.69% upside over the next 12 months, with a 90% confidence read. The recommendation is buy.
24/7 Wall St. Price Target Summary Metric Value Current Price $204.90 24/7 Wall St. Price Target $257.53 Upside 25.69% Recommendation BUY Confidence Level 90% A Sharp Pullback After an Even Sharper Rally Qualcomm has had a wild quarter. The stock is up 21.03% year to date and 34.18% over the past year, but shares have given back 17.34% over the last month after touching $258.96 in May. The recovery off the March low near $129.39 followed a blowout Q1 FY26 earnings report and a Q2 report that delivered $2.65 non-GAAP EPS on $10.6 billion in revenue, a 3.67% EPS beat and the fourth consecutive quarter topping consensus.
The June 24 Investor Day was the catalyst behind this week’s bullish chatter. Management doubled the 2029 non-handset revenue target to $40 billion and laid out a $15 billion AI data center sales target, which triggered a +12% pre-market reaction. Retail sentiment on r/wallstreetbets jumped to 76 on the news.
The Case for $267 and Higher The bull thesis rests on diversification finally cracking the “Qualcomm is just a handset story” narrative. Q2 FY26 automotive revenue hit a record $1.33 billion, up 38% YoY, while IoT grew 9%. CEO Cristiano Amon flagged that a “leading hyperscaler custom silicon engagement is on track for initial shipments later this calendar year,” validating the data center entry.
Add the Alphawave Semi acquisition, the Snapdragon AI-at-the-edge roadmap, a fresh $20 billion buyback authorization, and our bull case targets $267.77, a 30.69% total return.
The Risks Worth Watching Q3 FY26 guidance of $9.2 billion to $10 billion in revenue and non-GAAP EPS of $2.10 to $2.30 implies another sequential decline. Handsets fell 13% YoY on memory supply constraints and China softness. Apple’s eventual modem in-sourcing, customer vertical integration, and US-China trade friction are real overhangs, and insider activity skews to net selling.
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That said, management expects Chinese handset revenue to bottom in Q3 and recover sequentially. Bears would also note operating income dropped 26% YoY, though heavy data center R&D is a big reason why. Our bear case lands at $208.91.
Qualcomm Price Prediction 2026-2030 The 24/7 Wall St. price target of $257.53 reflects high confidence that the data center optionality is mispriced at a forward P/E of 18x. I’d be a buyer here if the hyperscaler shipments land on schedule in late 2026 and China handsets stabilize as guided.
I’d stay on the sidelines if Q3 guidance is cut again or if the Apple modem transition accelerates. The setup favors the bulls.
Looking further ahead, here is where our model projects QCOM could trade, assuming the data center ramp and FY29 revenue goals stay on track.
Year 24/7 Wall St. Price Target 2026 $257 2027 $295 2028 $335 2029 $370 2030 $400 These projections assume Qualcomm executes on its $40 billion non-handset 2029 target. Significant downside could result from Apple’s modem transition or a hyperscaler engagement slipping into 2027.
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The upbeat market backdrop comes as Counterpoint Research said Qualcomm is becoming one of the few semiconductor companies capable of delivering end-to-end AI infrastructure, spanning hyperscale data centers and edge devices.
AI Expansion Beyond Smartphones Gains CredibilityIn a research note published Friday following Qualcomm’s Investor Day, Counterpoint analyst Neil Shah said the chipmaker’s expanding AI portfolio and recent acquisitions position it as a credible full-stack AI solutions provider, with a path toward generating $100 billion in annual recurring revenue within the next five to seven years.
The analyst said Qualcomm’s diversification strategy extends well beyond smartphones and addresses the rapidly growing AI data center market, which remains in its early stages. The AI data center market is still in its infancy, and it is not a “zero-sum” game, Shah noted.
Acquisitions Build A Full AI StackCounterpoint highlighted Qualcomm’s recent acquisitions as key building blocks in its AI strategy.
The firm said NUVIA provides Qualcomm’s Oryon CPU architecture, enabling Arm-based processors that now span smartphones, PCs, automotive applications and future AI data centers.
Qualcomm also unveiled its C1000 server CPU, with Meta Platforms Inc. (NASDAQ:META) expected to become its first hyperscale deployment customer beginning around fiscal 2029.
The report also pointed to Qualcomm’s AI accelerator roadmap, custom silicon capabilities and its proprietary High Bandwidth Compute architecture, which aims to improve AI performance while reducing memory-related bottlenecks.
Counterpoint said the company’s recent acquisition of Modular strengthens its software stack by enabling AI workloads to run across different hardware platforms using an open architecture.
Data Center Opportunity Comes Into FocusCounterpoint said Qualcomm still faces gaps in networking and switching technologies, but noted that its acquisition of Alphawave Semi significantly expands its interconnect portfolio while bringing experienced leadership to its growing data center business.
The research firm also highlighted Qualcomm’s long-term financial targets unveiled during Investor Day. According to the report, management expects its AI data center business to generate about $15 billion in revenue by fiscal 2029, while the company’s non-handset businesses are projected to surpass handset revenue over the same period.
Automotive remains another major growth driver, with Qualcomm’s automotive design-win pipeline reaching $65 billion and expected to generate $10 billion in annual recurring revenue through fiscal 2029.
Counterpoint concluded that Qualcomm’s combination of silicon, software and ecosystem scale makes the company uniquely positioned to compete across the AI value chain, from hyperscale data centers to connected devices.
Technical Setup Remains MixedQualcomm continues to trade above its longer-term trend lines. The stock sits about 15.6% above its 100-day simple moving average of $166.92 and 14.9% above its 200-day simple moving average of $167.92.
However, the shares remain 11.3% below the 20-day simple moving average of $217.51 and 2.9% below the 50-day simple moving average of $198.72. That suggests the recent move is a rebound attempt rather than a confirmed recovery.
The 50-day moving average crossed above the 200-day moving average in May, forming a bullish “golden cross” that continues to support the intermediate-term trend. Even so, traders will likely look for the stock to reclaim the 50-day moving average before turning more bullish.
Momentum indicators remain cautious. The MACD remains below its signal line, indicating buying momentum has weakened following the previous rally.
Key technical levels to watch include resistance around $206, near the 50-day moving average, and support near $190.50, which aligns with a recent trading floor.
Earnings And Analyst OutlookQualcomm is expected to report quarterly earnings on or around July 29.
Wall Street expects earnings per share of $2.09 on revenue of $9.67 billion, compared with EPS of $2.77 and revenue of $10.37 billion in the year-ago quarter.
The stock trades at about 20.4 times earnings and carries a consensus Hold rating, with an average analyst price forecast of $209 based on coverage from 50 analysts. Recent analyst actions include:
Benchmark maintained Buy and raised its price forecast to $300 on June 25. Barclays maintained Underweight and increased its price forecast to $245 on June 25. UBS maintained Neutral and lifted its price forecast to $235 on June 25. Price ActionQCOM Stock Price Activity: Qualcomm shares were up 2.37% at $193.88 during premarket trading on Monday, according to Benzinga Pro data.
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Qualcomm unveiled major AI infrastructure products and raised non-handset FY29 revenue targets to $40B, signaling a transformative growth phase. The wireless chip company raised its non-handset FY29 revenue target to $40B, with $15B+ from Data Center contracts with hyperscalers and Automotive guidance up 25% to $10B. Management targets FY29 EPS above $18 and envisions scaling total revenue toward $100B, while maintaining robust free cash flow and capital return flexibility.
Artificial intelligence is rapidly shifting from the cloud to the devices we use every day. The first wave of generative AI relied on massive data centers packed with expensive graphics processors. The next phase is about making AI faster, cheaper, and more private by moving more of that computing directly onto smartphones, laptops, and vehicles.
That transition has become a battleground for chipmakers, and Qualcomm (NASDAQ:QCOM | QCOM Price Prediction) believes the same technology it is developing for AI data centers can eventually power the next generation of edge devices.
Qualcomm’s Answer to AI’s Memory Problem At the center of Qualcomm’s strategy is a new chip architecture called high bandwidth compute (HBC). According to Qualcomm, HBC places dedicated AI accelerator logic directly beneath vertically stacked LPDDR memory using through-silicon vias (TSVs), dramatically shortening the distance data must travel between memory and compute.
That may sound like semiconductor jargon, but the problem it addresses is simple. Modern AI models spend an enormous amount of time moving data back and forth between memory and processors. Engineers refer to this bottleneck as the “memory wall.” As AI models grow larger, that movement increasingly consumes more power than the calculations themselves.
Qualcomm says HBC offers several advantages over traditional high-bandwidth memory (HBM) designs:
Feature Qualcomm HBC Traditional HBM Memory type LPDDR HBM Bandwidth efficiency ~6x higher bandwidth per watt Baseline Cost Lower Higher Primary target AI inference AI training and inference Those advantages could make HBC attractive not only for cloud providers but also for smartphones, PCs, and automotive systems where power efficiency is every bit as important as raw performance.
Qualcomm Is Building on Existing Technology — Not Reinventing It Qualcomm isn’t inventing an entirely new category of computing. Companies including Nvidia (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD), Samsung, Micron Technology (NASDAQ:MU), and SK hynix already rely on advanced 3D memory stacking in AI accelerators. AMD’s MI300 family, for example, combines CPUs, GPUs, and HBM into tightly integrated packages, while Samsung has invested heavily in processing-in-memory technology.
The difference is Qualcomm’s focus on inference rather than training.
Inference — the process of generating AI responses — is becoming the largest long-term AI workload. By pairing lower-power LPDDR memory with near-memory compute, Qualcomm believes it can deliver better performance per watt while reducing total system costs.
That strategy also aligns with Qualcomm’s historical strengths. The company has spent decades optimizing chips for battery-powered devices, giving it deep expertise in LPDDR memory and power management. Extending those capabilities from smartphones into AI servers — and then bringing the architecture back to consumer devices — is an unusual but logical roadmap.
In any 3D package, heat generated by the compute die must travel upward through multiple silicon layers before reaching a cooling solution. That creates hotspots that can reduce performance or shorten component life if temperatures climb too high.
Data centers can offset this with liquid cooling and sophisticated thermal systems. Smartphones, laptops, and vehicles have far tighter space and power constraints.
Qualcomm believes several factors help manage those thermal challenges:
LPDDR consumes less power than HBM. Advanced bonding materials reduce thermal resistance. Dynamic power management can throttle workloads before overheating occurs. Qualcomm’s experience designing mobile processors gives it an advantage in balancing sustained performance and battery life. That said, investors should wait for independent benchmarks. Real-world testing will determine whether HBC delivers its promised gains without sacrificing sustained performance.
Key Takeaway In short, Qualcomm’s high-bandwidth compute architecture isn’t a revolutionary break from existing semiconductor design, but it could become an important evolution in AI computing. Rather than chasing Nvidia in massive AI training clusters, Qualcomm is targeting the next wave of AI inference with an architecture designed around efficiency instead of brute force.
If Qualcomm succeeds, the payoff could extend well beyond data centers. Smartphones, PCs, and connected vehicles could run larger AI models locally, reducing cloud costs, improving privacy, and extending battery life. The remaining question isn’t whether the idea is compelling — it is whether Qualcomm can prove its thermal design and manufacturing approach work at scale. For long-term investors, those benchmarks and early customer deployments will be worth watching closely.
Qualcomm's strategic acquisitions enable their vertically integrated CPU, GPU, interconnect, and software capabilities, positioning it as a future AI powerhouse beyond legacy handset markets. These have contributed to the management's promising FY2029 guidance of $40B in non-handset revenues (expanding at a 4Y CAGR of +39.4%) and adj. EPS of over $18. Despite the recent breakout, QCOM remains compelling at a P/E of 18.34x and a 4Y PEG of 1.35x, while offering significant upside potential to my LTPT of $330.10.
