QUALCOMM Stock: Is QCOM Outperforming the Technology Sector?

San Diego, California-based QUALCOMM Incorporated (QCOM) is a semiconductor and wireless technology company with a market cap of $264.6 billion. It drives the evolution of connected, intelligent computing. 

Companies worth $200 billion or more are typically classified as “mega-cap stocks,” and QCOM fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the semiconductors industry. The company is rapidly expanding its footprint into hyperscaler data centers and next-generation AI-defined PCs, solidifying its role as an indispensable infrastructure architect for intelligent edge computing worldwide.

The company touched its 52-week high of $259.92 in the last trading session and is currently trading 3.4% below it. Shares of QCOM have rallied 76.3% over the past three months, considerably outperforming the State Street Technology Select Sector SPDR ETF’s (XLK) 37.7% return during the same time frame.

In the longer term, QCOM has soared 70.1% over the past 52 weeks, outpacing XLK's 65.2% uptick over the same time period. Moreover, on a YTD basis, shares of QCOM are up 46.8%, compared to XLK’s 32.7% rise.

To confirm its bullish trend, QCOM has been trading above its 200-day moving average since late April and has remained above its 50-day moving average since mid-April. 

Historically, QCOM has been viewed primarily as a smartphone chip leader, powering millions of Android devices worldwide. However, the AI boom is increasingly expanding the company’s growth opportunities beyond its core handset business. Recently, QCOM shares reached record highs following reports that the chipmaker secured a major AI infrastructure deal with ByteDance, the parent company of TikTok. Under the agreement, ByteDance is expected to purchase millions of Qualcomm’s AI-focused ASIC chips for data centers to support its growing AI workloads. The deal marks Qualcomm’s first major customer win in the AI ASIC market and represents a significant step in diversifying its revenue base. 

In the competitive arena of semiconductors, QCOM has also notably outpaced its rival, NVIDIA Corporation (NVDA), which gained 56.6% over the past 52 weeks and 13.2% on a  YTD basis. 

Despite QCOM’s recent outperformance, analysts remain cautious about its prospects. The stock has a consensus rating of "Hold” from the 35 analysts covering it. While the company is trading above its mean price target of $181.21, its Street-high price target of $300 suggests a 19.5% premium to its current price levels.