Qualcomm stock: Qualcomm stock jumps 15% as AI partnership with OpenAI, new Snapdragon chips and strong earnings boost investor confidence
Investors believe Qualcomm is becoming a strong artificial intelligence company rather than relying solely on smartphone chips. One of the major reasons behind the rally was news that Qualcomm was partnering with OpenAI to develop an AI-focused smartphone chip. The report stated that mass production of the artificial intelligence-based smartphone chip could start in 2028. According to Investing.com, investors think this partnership could help create a completely new generation of AI-powered phones.
Qualcomm shares hit new highs
Qualcomm shares hit $208.92 in morning trading, setting a new 52-week high of $209.23, Investing.com said. Qualcomm’s previous big rally took place on April 30, 2026, after the company announced it would start shipping chips to a large hyperscaler data center customer earlier than expected.
Qualcomm previously said data center chip shipments would begin later this year instead of fiscal 2027. Qualcomm’s automotive business unit has surpassed $5 billion in annual revenue for the first time, CEO Cristiano Amon said. Cristiano Amon also said that the company expects automotive revenue to exceed $6 billion by the end of fiscal 2026. Qualcomm recently reported strong second-quarter earnings, which helped boost investor confidence.
Qualcomm’s profit exceeds forecasts
The company reported adjusted earnings per share of $2.65, beating analysts’ expectations of $2.56. As reported by Investing.com, Qualcomm reported quarterly revenue of $10.60 billion; That’s slightly above Wall Street expectations of $10.59 billion. Investors were impressed when Qualcomm beat forecasts and also expanded beyond smartphones, according to Investing.com.
Qualcomm announced two new mobile chip platforms (Snapdragon 6 Gen 5 and Snapdragon 4 Gen 5) to strengthen its smartphone business. According to Qualcomm, the Snapdragon 6 Gen 5 platform provides 20% faster application launches and 18% less screen lag. Snapdragon 6 Gen 5 also offers 21% better GPU performance and includes AI-powered camera features. Snapdragon 6 Gen 5 supports both 5G and Wi-Fi 7 connectivity. Qualcomm said that the Snapdragon 4 Gen 5 chip brings 77% better GPU performance compared to previous versions. Snapdragon 4 Gen 5 also supports 90FPS gaming experience for the Snapdragon 4 series for the first time. Qualcomm said Snapdragon 4 Gen 5 delivers 43% faster app launches and 25% less screen stuttering. Snapdragon 4 Gen 5 platform also supports Dual SIM Dual Active 5G connectivity.
Qualcomm expands data center business
Commercial devices using both new chip platforms will launch in the second half of 2026, Qualcomm said. Smartphone brands such as Honor, OPPO, realme and REDMI are expected to use these chips. Qualcomm also completed its $2.3 billion acquisition of Alphawave to expand its data center business, Investing.com noted. The company announced an additional $20 billion share repurchase program. Qualcomm also increased its quarterly dividend from $0.89 per share to $0.92.
Following these developments, analysts began to view the stock more positively. Argus Research raised its price target on Qualcomm to $220 from $180 while maintaining a “Buy” rating. Argus said Qualcomm’s expansion into automotive technology and artificial intelligence merited a higher company valuation. Institutional investors also increased their investments in Qualcomm. Gateway Investment Advisers LLC increased its shares of Qualcomm by 2.4% in the fourth quarter, according to SEC data cited by Investing.com.
US pause on China tariffs helps Qualcomm
Another key factor supporting Qualcomm shares was the 90-day temporary tariff pause between the US and China. The tariff pause eased concerns about weak smartphone demand in China. China remains Qualcomm’s largest smartphone chip market, making the tariff cut important for investors. The improving US-China trade situation has also helped stabilize Android smartphone upgrades in China. The overall US stock market also followed a positive trend, helping Qualcomm shares rise.
According to Investing.com, the NASDAQ index rose 0.48% in Thursday’s session, while the S&P 500 rose 0.13%. Investors now see Qualcomm as more than a smartphone chip company. Markets believe Qualcomm has become a diversified AI computing company with operations in smartphones, automotive technology, AI infrastructure and data centers.
Qualcomm’s next big test will come at its June 24 Investor Day event, where management is expected to provide more details about its data center AI business. Analysts believe the company could still be in the early stages of a major long-term growth phase if its AI and data center plans are successful.
FAQ
Q1: Why did Qualcomm shares soar?
Qualcomm shares jumped as investors got excited about AI growth, strong earnings and reports of an AI smartphone chip partnership with OpenAI.
Q2: What is Qualcomm’s new AI smartphone project?
Reports say that Qualcomm and OpenAI may develop an AI-driven smartphone chip that could go into mass production by 2028.
