Qualcomm (QCOM) Stock Surges with Major AI Chip Wins from Microsoft and Meta Before Q3 Earnings

Key Takeaways

Table of Contents

Qualcomm has secured AI chip partnerships with three hyperscale customers, with Microsoft and Meta publicly confirmed as strategic partners.
The chipmaker is pursuing a minimum $15 billion revenue opportunity in AI data centers by fiscal year 2029, starting from zero current revenue.
The company’s new chips reportedly provide 4–8 times superior computing efficiency per watt versus traditional GPU-based solutions.
QCOM shares are currently hovering between $173–$175, representing approximately a 30% decline from the 52-week peak of $259.92.
Wall Street consensus maintains a Hold rating, with the average analyst price target reaching $219.76 — indicating roughly 26% upside potential.

Qualcomm (QCOM) shares are hovering in the $173–$175 range, significantly below the 52-week peak of $259.92, yet the semiconductor company has just announced partnerships that could fundamentally reshape investor sentiment.

QUALCOMM Incorporated, QCOM

The chip manufacturer has secured agreements with three leading hyperscale cloud providers to deliver AI-optimized data center processors. Two confirmed partners are Microsoft and Meta. This represents a strategic pivot for a company that generated zero data center revenue just twelve months ago.

These partnerships revolve around Qualcomm’s latest silicon offerings — the AI200, AI250, and the newly unveiled Dragonfly AI300 inference accelerator. Additionally, Meta will deploy the Dragonfly C1000 CPU across its upcoming server infrastructure.

Microsoft’s Azure cloud computing platform plans to integrate Qualcomm’s HBC (high-bandwidth compute) processors along with the AI200 and AI250 chips, with rollout anticipated to commence in 2026.

The primary value proposition for these hyperscale partners centers on power efficiency. Qualcomm asserts its architectural design achieves 4 to 8 times greater computing performance per watt versus GPU-centric configurations through direct integration of processing cores with high-bandwidth memory.

This efficiency advantage becomes increasingly critical as major technology companies grapple with escalating data center power consumption challenges.

The Path to $15 Billion in Data Center Revenue

Qualcomm has established a revenue goal of at least $15 billion from AI data center operations by fiscal year 2029. To put this in perspective, the company generated $44.3 billion in total revenue during fiscal 2025.

Achieving this milestone would require Qualcomm to secure approximately 10% share of the global AI processor market, which Precedence Research projects will expand to $146 billion by 2029.

The semiconductor firm also anticipates its non-smartphone divisions — encompassing automotive technology and IoT solutions — will expand at a compound annual growth rate of 40% through 2029.

Latest Financial Performance and Investor Movements

Qualcomm’s latest quarterly performance delivered earnings per share of $2.65, surpassing analyst expectations of $2.56. Revenue totaled $10.60 billion, meeting projections but reflecting a 3.5% year-over-year decline.

Management issued Q3 2026 EPS guidance ranging from $2.10 to $2.30. The full-year EPS projection stands at $7.97.

Institutional interest continues to build. NewEdge Wealth LLC expanded its Qualcomm holdings by 7.0% during Q1, purchasing 19,412 additional shares to reach a total position of 298,683 shares worth approximately $38.5 million.

Analyst coverage has intensified recently. Barclays elevated QCOM from underweight to overweight in late June. Benchmark increased its price objective from $225 to $300. Wells Fargo boosted its target from $230 to $265. Cantor Fitzgerald maintained a neutral stance with a $220 price target.

Across 38 analyst ratings, the consensus recommendation sits at Hold, with an average price objective of $219.76.

Regarding insider transactions, CEO Cristiano Amon divested 10,000 shares at $180.00 on May 4th through a pre-established 10b5-1 trading arrangement. EVP Heather Ace similarly sold 3,200 shares at $177.82 on the same date. Company insiders have collectively sold 21,721 shares valued at approximately $4 million during the past 90 days.

The company maintains a quarterly dividend distribution of $0.92 per share, scheduled for September 24th payment, yielding approximately 2.1% annually.

Qualcomm’s upcoming quarterly earnings announcement is scheduled for July 29th.

✨ Limited Time Offer