The AI Stock Nobody's Talking About That Could Be This Year's Biggest Winner Qualcomm has been bogged down by the weakness in the smartphone market. However, its move into AI could unlock a solid growth opportunity. The company aims to capitalize on the growing demand for inference-focused AI chips. Smartphone chip specialist Qualcomm (QCOM+9.15%) has underperformed the broader semiconductor sector over the past three years, gaining 58% during this period, compared with the 258% gains clocked by the PHLX Semiconductor Sector index. Qualcomm's underperformance isn't surprising. While several semiconductor stocks have benefited substantially from the booming demand for artificial intelligence (AI) chips, Qualcomm's reliance on the smartphone market for the majority of its revenue has been a headwind for the stock. However, Qualcomm stock popped impressively last week following the release of the company's latest quarterly results on April 29. Let's see why that was the case and check why this semiconductor stock is an underrated gem that could be one of the best ways to capitalize on the AI sector's growth in 2026. Qualcomm's results for its fiscal 2026's second quarter (ended March 29) weren't great. Its revenue and adjusted earnings declined year over year. The company saw a significant 13% year-over-year decline in its smartphone revenue to $6 billion, which isn't surprising given the prevailing softness in this market. Qualcomm is engaging with several companies for its custom AI processors. Importantly, a large hyperscaler is reportedly in talks with Qualcomm to develop multiple generations of custom AI processors. It's worth noting that Qualcomm has been pushing the envelope in the AI chip market for some time now, and it announced a breakthrough in this space last year.#qualcomm #hyperscaler #ai_chips #investor_day #edge_ai
Qualcomm Stock Surges on Strong Earnings and Strategic Shifts Qualcomm Incorporated stock surged over 8.8% in pre-open trading on May 11, 2026, driven by a strong fiscal second-quarter earnings report and renewed investor confidence in the company’s long-term growth prospects. The rally followed Qualcomm’s April 29 earnings release, which showed the company exceeded expectations with $2.65 earnings per share, surpassing analyst forecasts of $2.56, and reported revenue of $10.60 billion, slightly above the $10.59 billion consensus estimate. CEO Cristiano Amon highlighted a key strategic shift during the earnings call, announcing that Qualcomm would begin shipping data center chips to a major hyperscaler within the same calendar year. This development signaled a significant pivot from the company’s traditional focus on mobile handsets to a broader role in AI compute platforms, particularly in data centers and physical AI applications. Analysts viewed this as a game-changer, redefining Qualcomm’s earnings potential and sparking sustained buying interest. The stock’s surge was further amplified by analyst upgrades and revised price targets. Daiwa analyst Louis Miscioscia upgraded Qualcomm to Outperform from Neutral, raising his price target to $225 from $140. Tigress Financial also increased its target to $280 from $270, citing the company’s “increasingly compelling” investment case. Benchmark and Roth MKM joined with buy ratings and higher price targets, reflecting growing optimism about Qualcomm’s diversified revenue streams. On the capital return front, Qualcomm authorized an additional $20 billion for stock repurchases and raised its quarterly dividend from $0.89 to $0.92 per share, signaling confidence in its financial flexibility.#nasdaq #tigress_financial #qualcomm_incorporated #cristiano_amon #hyperscaler
