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 IncorporatedAnalysts view the handset revenue dip as a buying opportunity, citing strong growth in AI data center, automotive, and IoT, with a 46.6% upside.
Apple Inc.Qualcomm's faster-than-expected loss of modem share at Apple indicates Apple is reducing reliance on Qualcomm modems.