As Qualcomm Surges on Data Center Demand, Should You Chase QCOM Stock Here?

Qualcomm (QCOM) shares are pushing higher on Thursday even though the company posted only in-line financials for its Q2 and missed consensus on the guidance front. 

The post-earnings surge drove QCOM’s relative strength index (RSI) into the late 80s, indicating extremely overbought conditions that often trigger a meaningful pullback. 

At its intraday peak, Qualcomm stock was seen trading at a year-to-date high of $186 this morning. 

What Helped Qualcomm Shares Pop on Thursday?

Investors are cheering QCOM shares not because of the company’s core smartphone business, but because of a breakthrough in its diversification strategy. 

On the earnings call, management said Qualcomm has secured a “leading hyperscaler” as a client, with custom silicon shipments expected to begin in the final quarter of 2026. 

This announcement validates the Nasdaq-listed firm’s ability to compete with industry titans in the lucrative data center market. 

By leveraging its custom Oryon CPU cores and high-performance AI inference accelerators, QCO is evolving from a handset-first company into a critical infrastructure provider for the AI build-out.

A 2.05% dividend yield makes Qualcomm even more attractive as a long-term holding in 2026. 

QCOM Stock Is Inexpensive for an AI Beneficiary

QCOM’s pivot into automotive and AI-enabled personal computers (PCs) strengthens the overall bull case. 

According to CEO Cristiano Amon, the Automotive business has hit a $5 billion annualized run rate, while the upcoming agentic AI upgrade cycle signals a huge tailwind for the smartphone segment. 

Still, Qualcomm shares are currently going for just 18x forward earnings — a meaningful discount versus the company’s artificial intelligence peers. 

Last month, QCOM announced a massive $20 billion stock buyback plan, reiterating that it remains fully committed to improving shareholder value.

Note that Qualcomm has a history of closing the next three months (May, June, July) in the green — a seasonal pattern that further boosts its appeal as a long-term investment.  

What’s the Consensus Rating on Qualcomm?

Despite a Q2 release that can only be described as muted at best, Wall Street isn’t throwing in the towel on QCOM stock. 

While the consensus rating sits at “Hold," price targets on Qualcomm go as high as $205 currently, indicating potential upside of nearly 14% from here.