Qualcomm Incorporated

Qualcomm expects non-handset revenue growth to accelerate from 24% in fiscal 2026 to more than 60% in fiscal 2027, driven by AI chip demand. The company recently agreed to a long-term deal with Meta Platforms for data center CPUs, which could validate its new technology and boost demand. Non-handset revenue made up 40% of Qualcomm's fiscal 2026 third-quarter revenue, and the company projects non-handset revenue will reach $40 billion by fiscal 2029. Qualcomm's contract with Apple ends in March 2027, making the AI pivot timely as handset sales decline. Qualcomm trades at a P/E ratio of 18, down about 7.1% year to date, while the iShares Semiconductor ETF has surged more than 68%.

Qualcomm has fallen 35% from its May 2026 highs, and the market is pricing it like a company in decline following tough quarterly results and weakness in smartphones. QCT handset revenue dropped 20% last quarter as smartphone OEMs cut chipset purchases and worked down inventory amid memory supply constraints, while Apple is expected to use Qualcomm modems in only around 20% of iPhones in 2026 and none by 2027. Fiscal Q3 adjusted earnings fell to $2.21, about 20% year over year, with Q4 guidance pointing to further softness, but the stock still trades at just about 16x forward earnings on projected fiscal 2027 earnings of $10.20 per share. Qualcomm is targeting more than $15 billion in annual data-center revenue by fiscal 2029, with its AI200, AI250, and AI300 inference systems, a 200 MW agreement with HUMAIN starting in 2026, and a multi-generation CPU deal with Meta for the Dragonfly C1000 expected to enter production in 2028. The completed $2.4 billion Alphawave acquisition further strengthens this strategy by giving Qualcomm high-speed connectivity, custom silicon, and chiplet capabilities.

Micron Technology has completed strategic customer agreements with a group of automotive Tier 1 suppliers, including Qualcomm, Visteon, HARMAN, JOYNEXT, DENSO, Astemo and Hyundai Mobis, giving the company greater visibility into future memory and storage orders as vehicles add more advanced driver assistance and in-cabin computing power. The bigger driver remains AI, with Amazon lifting its 2026 outlay target to $220 billion and Alphabet planning a $200 billion budget, money that keeps flowing toward the memory chips inside AI servers. In the nine months ended May 28, the first three quarters of fiscal 2026, Micron's revenue reached $79 billion, a 203% jump from the same stretch a year earlier, while net income hit $47 billion, a 60% net margin, versus just $5 billion the year before. Analysts expect revenue to grow 247% this fiscal year and another 85% in fiscal 2027, and Micron has pushed customers toward five-year price agreements instead of the one-year contracts that once left it exposed to sudden price swings. However, the stock has fallen about 30% since peaking in June after a nearly 690% climb over the prior twelve months, reflecting investor caution tied to historical memory chip cycles and potential new supply from rivals including Samsung, SK Hynix and ChangXin Memory Technologies.

Barclays analysts say humanoid robots will create demand for data-centre infrastructure, AI accelerators, memory and edge processors well before widespread commercial deployment begins. The analysts mapped more than 100 companies across the emerging value chain and identified intelligence as the biggest near-term constraint, requiring a computing stack that spans data-centre systems for simulation and synthetic training data, foundation models that translate perception into actions, and on-robot processors that execute decisions locally under strict latency, power and safety limits. Simulation is especially critical because developers lack internet-scale datasets for training, and demand for compute may scale ahead of robot production as models are trained and digital twins are created, potentially benefiting Nvidia, AMD, Qualcomm, Micron, SK Hynix, Samsung Electronics and TSMC. Nvidia already offers an integrated robotics stack including Omniverse, Isaac Sim, GR00T foundation models and Jetson processors. The humanoid market is currently estimated at $2 billion to $3 billion, with forecasts ranging from $10 billion to $25 billion by 2030 and more optimistic projections reaching around $200 billion by 2035, though large-scale economic deployment may be closer to 2035 than 2030 as safety, reliability and autonomy remain unresolved. Actuators account for an estimated 30% to 50% of a humanoid's component cost, compared with 10% to 15% for onboard compute, but low robot volumes currently limit standardisation and supplier investment.

Qualcomm signed a long-term deal to supply chips for BMW's future digital cockpit and advanced driver-assistance systems through the next decade. The agreement names Qualcomm as the automaker's lead compute silicon provider for next-generation digital cockpit, ADAS and automated driving systems, spanning the Snapdragon Cockpit, Ride and Elite platforms plus dedicated AI accelerators. No financial terms were disclosed. The deal builds on a partnership that already put the Snapdragon Ride Pilot system into BMW's iX3, and it arrives while Qualcomm is pushing to diversify beyond a shrinking handset business, with automotive revenue up 61% year over year and a $65 billion design-win pipeline.

Scam.ai has launched Halo, a real-time, on-device deepfake detection model for video meetings developed in collaboration with Qualcomm. Halo runs entirely on the user's device, securing live Zoom, Microsoft Teams, or Google Meet calls by flagging synthetic faces in real time using the Snapdragon NPU, Qualcomm's dedicated on-device AI silicon, without sending any video or audio to the cloud. The launch addresses a fast-growing threat, with the FBI's 2025 IC3 report estimating $2.9 billion in losses from business email compromise and deepfake-enabled wire fraud, and follows incidents such as engineering firm Arup losing $25 million in 2024 to a deepfake video call impersonation. Halo is available now for Windows, with support for additional platforms planned.

Multiverse Computing and Qualcomm Technologies have partnered to enhance the efficiency of AI operations in data centers globally. The collaboration will optimize AI models for Qualcomm's Dragonfly AI200 and AI250 accelerators, focusing on improving performance and reducing power consumption. Live demonstrations showed significant gains in response times and throughput without sacrificing accuracy, using compressed AI models in real-world scenarios. Qualcomm last closed at $162.67, up 7.3%.

Qualcomm stock is down about 14% year to date, pushing its forward dividend yield to roughly 2.5%, which is unusually attractive for a top tech name. The $0.92 quarterly dividend, or $3.68 annualized, is well covered, with the company paying out only 36% of free cash flow and 41% of earnings over the last year. Management has raised its fiscal 2029 target to $40 billion in non-handset revenue, including up to $15 billion from data center chips, as it shifts toward AI infrastructure. The handset business is expected to represent only a third of revenue by 2029, with growing contributions from automotive and Internet of Things segments. Qualcomm plans to grow the dividend at a low- to mid-single-digit rate while returning most free cash flow to shareholders.

Qualcomm’s fiscal 2026 third-quarter results revealed a nearly 20% year-over-year drop in handset revenue, driven by memory supply shortages and a faster-than-expected loss of modem share at Apple, yet many Wall Street analysts argue the market is overreacting and overlooking the company’s rapidly growing AI data center, automotive, and IoT businesses. Total revenue came in at $9.95 billion, down 4% year-over-year but ahead of estimates, while non-GAAP earnings per share of $2.21 missed the Street’s $2.22 forecast. Automotive revenue surged 61% to $1.59 billion and IoT revenue rose 9% to $1.83 billion, reinforcing Qualcomm’s diversification beyond smartphones. Management expects non-handset revenue to reach $40 billion by fiscal 2029 and projects year-over-year growth in non-handset businesses to accelerate from 24% in fiscal 2026 to more than 60% in fiscal 2027. The stock carries a consensus Moderate Buy rating with an average price target of $217.31, implying a potential 46.6% upside over the next 12 months.

Qualcomm's automotive revenue surged 61% year over year to a record $1.59 billion in its fiscal third quarter, even as the stock dropped 11% after earnings. Total revenue of $9.95 billion beat consensus by 2.84%, but non-GAAP EPS of $2.21 missed by a penny, and handset revenue fell 20% to $5.09 billion. CEO Cristiano Amon targets $40 billion in non-handset revenue by fiscal 2029, with growth accelerating to more than 60% in fiscal 2027. The company was named BMW Group's lead compute silicon provider for next-generation digital cockpit and automated driving systems, and it closed the acquisition of Modular Inc. 24/7 Wall St. maintains a buy rating and a $242.62 price target on Qualcomm shares, implying 55.85% upside from the current price of $155.68.

Micron Technology has completed multi-year Strategic Customer Agreements with major automotive ecosystem suppliers including Qualcomm, Visteon, HARMAN, JOYNEXT, DENSO, Astemo and Hyundai Mobis to secure long-term access to advanced memory and storage for AI-enabled vehicles. These agreements provide clearer visibility on future technology and supply needs, supporting investment decisions as automotive platforms adopt more complex AI workloads and require reliable component lifecycles. The deals add another long-duration, AI-heavy end market on top of hyperscale data centers, fitting into Micron's investment narrative that AI-driven demand for DRAM, NAND and HBM can sustain its recent profit boom. Near-term catalysts still center on AI infrastructure spending, execution on Micron's US$250.00 billion-plus buildout, and any shift in pricing power if Chinese competitors scale faster than expected. Insider selling and sector volatility keep valuation and cyclicality risks in focus, with fair value estimates from the Simply Wall St Community ranging from roughly US$550 to just above US$2,000 per share.

Qualcomm's automotive segment was the highlight of the quarter, with revenues growing 61% year-over-year, CFO and COO Akash Palkhiwala said. The company is forecasting another 60% growth next quarter, driven by broad adoption of its automotive solutions across global OEMs. Palkhiwala also highlighted opportunities in AI data centers, where Qualcomm's power-efficient chip technology is attracting hyperscaler interest, and in IoT devices like Meta glasses that use Snapdragon chips for AI capabilities.

Qualcomm completed its $3.9 billion acquisition of AI-software startup Modular and secured a long-term chip agreement with BMW, sharpening its push beyond smartphones just hours before its earnings report. The Modular deal adds software designed to run AI efficiently across CPUs, GPUs and other accelerators, strengthening Qualcomm's attempt to compete from personal devices to data centres. Qualcomm had agreed to issue up to 19.2 million shares to Modular's owners. The BMW agreement will see Qualcomm supply Snapdragon Digital Chassis technology for next-generation digital cockpits, advanced driver-assistance systems and AI accelerators through the next decade, though financial terms were not disclosed. Qualcomm reports fiscal third-quarter results after Wednesday's close, with analysts expecting roughly $9.7 billion in revenue and adjusted earnings near $2.22 per share.

Bernstein analyst Stacy Rasgon says Qualcomm could secure a tiny slice of the data center market, which may approach a trillion dollars, and still generate meaningful revenue. At a recent analyst day, Qualcomm projected $5 billion in data center revenue next year and $15 billion within a few years. Lopez Research founder Maribel Lopez noted the diversification strategy is sound but execution risk remains, as data center design wins take time. Rasgon added that Qualcomm still relies on handsets for 70% of chipset revenue and faces headwinds from a sluggish smartphone market and Apple designing out its components.

Qualcomm has completed its acquisition of Modular Inc, a leading innovator in AI-native software infrastructure. The deal combines Modular's AI-native software platform with Qualcomm Technologies' solutions to accelerate generative and agentic AI technologies from edge to cloud, targeting high-growth areas including data center, edge infrastructure, and personal and industrial AI. Modular's open ecosystem mission will continue, with Mojo, MAX and Modular Cloud remaining as products and brands. Chris Lattner, Co-Founder and CEO of Modular, will take on the role of Executive Vice President of Advanced AI Software and Platforms at Qualcomm Technologies.

Qualcomm Technologies has been selected by BMW Group as its lead compute silicon provider for next-generation digital cockpit and advanced driver assistance and automated driving systems through the next decade. The agreement spans Qualcomm's Snapdragon Digital Chassis portfolio, including Snapdragon Cockpit and Snapdragon Ride Platforms, and covers the most powerful system-on-chips and dedicated AI accelerators. This builds on an existing collaboration that most recently delivered the Snapdragon Ride Pilot in the BMW iX3, the first vehicle in BMW's Neue Klasse program, which launched commercially in November 2025. The partnership will provide the hardware basis for BMW Group to deliver next-generation AI-powered experiences across its vehicle lineup.

Major technology companies and startups are racing to develop wearable AI devices that can see, hear, and understand users more deeply, paving the way for a post-smartphone era amid privacy concerns. These devices include Meta Ray-Ban AI Glasses, the Amazon Bee Pioneer wristband, the Plaud Notepin S voice recorder, and smart glasses that Samsung plans to launch this year. The goal is to give AI assistants real-time access to daily life information, enabling personalized recommendations and eventually performing tasks on behalf of users. However, a CNN reporter who tested all three devices over several months found that while they offer benefits in certain situations, such as analyzing images of tourist attractions or recording conversations at networking events, they mostly felt unnatural when asking permission to record audio, and raised concerns when AI incorrectly analyzed personal emotions or feelings. Executives from Qualcomm, Amazon, Plaud, and OpenAI all confirmed ongoing development of AI hardware, believing that AI will become more effective when it understands the context of a user's life throughout the day, potentially leading to a four-day work week and the end of keyboards and mice. Meanwhile, privacy experts warn of the risks of unauthorized image and audio recording, particularly with Meta Ray-Ban glasses, which have been used to record others without consent. Although an LED indicator light is present, experts note that some devices may be hard to notice and carry the risk of being used harmfully in private spaces.

Qualcomm is targeting at least $5 billion in annual AI data-center revenue by fiscal 2027 and $15 billion by fiscal 2029, as it expands its Samsung partnership and pushes into AI infrastructure. The expanded Samsung collaboration will see Snapdragon platforms power more Galaxy flagship smartphones, smart watches, and future AI-powered smart glasses, reinforcing Qualcomm's premium Android dominance. On the AI infrastructure front, Qualcomm is building relationships with hyperscale cloud providers and has announced collaborations with Microsoft and Meta Platforms, aiming to become a major supplier of custom AI chips alongside Broadcom. While the smartphone business remains its largest revenue source, management is focused on reducing dependence on the cyclical handset market. Qualcomm trades at a price-to-earnings multiple of nearly 18x, a discount to Broadcom's nearly 63x, though execution risks remain in the competitive AI infrastructure landscape.

Qualcomm has a history of beating earnings estimates and may do so again in its next quarterly report. The chipmaker posted an average earnings surprise of 3.18% over the past two quarters, with the most recent quarter delivering $2.65 per share against a $2.57 consensus estimate and the prior quarter delivering $3.50 per share against a $3.39 consensus. The Zacks Earnings ESP for Qualcomm is positive at +0.33%, and the stock holds a Zacks Rank #3 (Hold), a combination that historically produces a positive surprise nearly 70% of the time. Qualcomm's next earnings report is expected on July 29, 2026.

Qualcomm has doubled its fiscal 2029 non-handset revenue target to $40 billion, according to O'Keeffe Stevens Advisory's second-quarter 2026 investor letter. At its June investor day, the company also lifted its automotive revenue target to $10 billion and announced a deal with Meta to supply data center CPUs for AI infrastructure, with production of its Dragonby C1000 slated for 2028. The advisory firm trimmed its Qualcomm position after the stock appreciated materially, citing an oversized portfolio weight and less attractive risk/reward. Qualcomm closed at $170.04 per share on July 27, 2026, with a market capitalization of $179.22 billion.