SAN DIEGO, May 6, 2026, 07:14 PDT
Qualcomm climbed roughly 5% early Wednesday in U.S. trading, sending QCOM close to the $200 mark as buyers chased the chipmaker’s AI data-center story and surging automotive business. Shares last changed hands at $196.08, after hitting an intraday high of $200.34. Market cap hovered near $210 billion.
This shift is key for Qualcomm, which is looking to reshape its image on Wall Street. The San Diego-based firm has historically been seen as a smartphone-chip specialist, but the stock’s jump this week signals investors are paying closer attention to its push into AI chips, custom silicon, and connected-car segments. Qualcomm shares climbed 8.46% in midday trading Tuesday, according to Investing.com, as buyers came back after the post-earnings dip.
Whether that fresh narrative can balance out pressure in phones remains to be seen. Qualcomm is still grappling with sluggish Android handset sales, which it blames on memory-chip shortages. Meanwhile, Apple and Samsung keep ramping up their use of proprietary parts — a trend that’s spotlighted Qualcomm’s smartphone dependence. After reporting April 29 results, CEO Cristiano Amon told Reuters the company expects a smartphone recovery after the fiscal third quarter: “We can now call the bottom.” Reuters
Qualcomm posted revenue of $10.6 billion for its fiscal second quarter, with GAAP earnings per share at $6.88 and non-GAAP earnings at $2.65. Automotive chip sales reached a new high, while combined revenue from automotive and internet-of-things segments jumped 20% year over year. The company said it bought back $5.4 billion in shares during the first half of fiscal 2026 and unveiled a fresh $20 billion buyback program.
Amon pointed to the “rise of AI agents” as a force shaking up the company’s plans across all platforms. He also noted a custom silicon deal with a “leading hyperscaler” is on schedule for first shipments before year-end. Hyperscalers—big cloud operators—are the sort of clients snapping up chips for data center use in bulk. Qualcomm
There’s also the automotive side. On the call, CEO Cristiano Amon noted Qualcomm blew past $5 billion in annualized auto revenue during the second quarter, with expectations to clear a $6 billion run rate by the end of fiscal 2026. CFO Akash Palkhiwala put QCT’s automotive revenue at $1.3 billion—a 38% jump. Internet-of-things revenue climbed 9% to $1.7 billion. ADAS—advanced driver-assistance systems—covers tech for steering, braking, and automated driving.
Qualcomm’s data center playbook now includes CPUs, AI inference accelerators and ASICs—custom silicon for targeted workloads. In effect, it’s starting to overlap with the likes of Broadcom and Marvell. “They’re building from a small base, but they’re already increasing the range of options they’re bringing to data center,” said Bob O’Donnell, president and chief analyst at TECHnalysis Research, in comments to Reuters. Reuters
The chip sector caught a tailwind. U.S. semiconductor names moved higher Wednesday, after AMD’s outlook gave AI infrastructure bulls something to grab onto. Reuters flagged Qualcomm, which jumped roughly 4% as part of the rally. Matt Britzman, senior equity analyst at Hargreaves Lansdown, called the AMD narrative “a broader compute opportunity,” noting both CPUs and GPUs are in the mix as AI workloads ratchet up. Reuters
Trefis, featured in Forbes, went further with its bullish scenario, suggesting Qualcomm might reach $340 if it can pull off 15% yearly revenue growth, hitting $65 billion by 2029, and if investors are willing to pay up with a higher earnings multiple. That’s just their model—this isn’t guidance from the company. The assumptions lean heavily on edge AI, automotive, and on-device computing becoming much bigger revenue drivers for Qualcomm.
The trade comes with caveats. Cantor Fitzgerald bumped its Qualcomm target up to $150 from $135 but stuck with a Neutral call. The firm pointed to Qualcomm’s own forecast for a significant June-quarter miss, blaming soft Android demand and DRAM supply issues. J.P. Morgan weighed in too, saying the smartphone space isn’t in the clear yet, flagging additional memory shortages and possible price hikes ahead.
June 24 is circled on calendars: that’s when Qualcomm convenes its Investor Day in New York, themed “Scaling AI across the connected edge and data center.” Investors want answers on who the hyperscaler partner is, when shipments actually begin, and what the revenue picture might look like—plus, they’ll be watching to see if Qualcomm can finally turn data-center chips into meaningful earnings, not just another talking point. Qualcomm
