Dear Qualcomm Stock Fans, Mark Your Calendars for June 24

Qualcomm (QCOM) stock has been on steroids with a rally of 86% in the last one month. While Q2 results were largely in-line with estimates, the company provided a muted guidance for Q3 FY26. 

Analysts believe that the company’s hyperscale win is the reason for the rally. According to Qualcomm, a “leading hyperscaler custom silicon engagement” is scheduled for initial shipments later this year. With significant opportunities related to data center and physical AI, the company is potentially at a point of growth acceleration. 

The excitement related to QCOM stock is further magnified as the company prepares to provide an update on growth and diversification on Investors Day 2026, that’s scheduled for June 24.

GF Securities believes that Qualcomm is among the beneficiaries of the ongoing “server CPU super cycle.” In a bull-case scenario, GF Securities assumes a 30% market share for Qualcomm for ARM-based CPU market in 2028. This is likely to have an impact of $3.6 billion on the company’s net profit. Given the bullish outlook, it’s not surprising that QCOM stock is surging higher. 

About Qualcomm Stock

Headquartered in San Diego, Qualcomm is involved in the development and commercialization of foundational technologies for the wireless industry. This includes on-device artificial intelligence, high-performance and low-power computing, and advanced wireless connectivity.

The company operates under three segments: QCT (Qualcomm CDMA Technologies), Semiconductor business, and QTL (Qualcomm Technology Licensing). Through these segments, Qualcomm caters to industries that include AI, automotive, advanced connectivity, smartphones, and IoT. 

For Q2 FY26, Qualcomm reported revenue of $10.6 billion, which was lower by 3% year-over-year (YOY). For the same period, the company’s GAAP EPS was $6.88. While Qualcomm has reported marginal top-line de-growth, QCOM stock has trended higher by 17.66% in the last six months as markets discount improved performance in the coming quarters. 

The Big AI Opportunity

Importantly, even after muted results, QCOM stock skyrocketed due to the massive impending AI opportunity. The engagement with a hyperscaler for custom silicon chips may be only the beginning. 

Last month, it was reported that Qualcomm is likely to partner with OpenAI for the development of smartphone processing chips. This news triggered a 7% rally in QCOM stock. The rally does not come as a surprise as confirmation of this potential partnership can translate into a big opportunity, particularly true at a time when Agentic AI phones are likely to gain traction.

In a recent interview, Qualcomm Chief Executive Cristiano Amon indicated that the company is working with “pretty much all” major AI players to build devices that “replaces the smartphone.” Amon also believes that 2027-2028, will be the turning point with widespread adoption, positioning Qualcomm for significant growth in the next 24 to 36 months. 

What Do Analysts Say About QCOM Stock?

Based on 34 analysts with coverage, QCOM stock has a consensus “Hold” rating. While 10 analysts have a “Strong Buy” rating for QCOM stock, one has a “Moderate Buy,” and 18 have a “Hold” rating. Among the bears, two and three analysts have a “Moderate Sell” and “Strong Sell” rating, respectively. 

The mean price target of $176.43 represents potential downside of 15.6% from current levels. However, the most bullish price target of $300 suggests that QCOM could climb 43.6% from here.

Concluding Views

After a significant rally, Qualcomm stock trades at a forward price-to-earnings ratio of 27.41 times. Therefore, valuations are not stretched if growth acceleration beyond 2026 is significant. 

From the perspective of value creation, Qualcomm currently offers a quarterly dividend of $0.92. At the current price, the annualized dividend yield (forward) is 1.62%. Additionally, the company has authorized a new $20 billion stock repurchase program. 

Overall, the company’s entry into data centers is likely to be a value creator. At the same time, PricewaterhouseCoopers expects the Physical AI market to be worth €430 billion by 2030. This could be another top-line and earnings growth driver for Qualcomm.