Qualcomm stock surges 15% as AI chips and data center expansion fuel investor confidence

Qualcomm stock jumps 15% as AI partnership with OpenAI, new Snapdragon chips and strong earnings boost investor confidence

Qualcomm stock is getting attention after strong growth in AI, smartphones and data centers. Investors are watching the company closely because of new chip launches, better earnings and future AI plans. Qualcomm is also expanding into automotive technology and advanced computing, making it one of the biggest tech companies to watch in the AI market right now. Qualcomm stock jumped nearly 15% on Thursday morning as investors became more excited about the company's growing role in the AI market. Later in the trading session, the stock cooled slightly but was still trading around 9% higher for the day. Qualcomm's trading volume reached 17.9 million shares, which was more than double its normal 20-day average of 8.5 million shares for that time of day, according to Investing.com. Investors believe Qualcomm is becoming a strong AI company instead of only depending on smartphone chips. One major reason behind the rally was reports about Qualcomm partnering with OpenAI to develop an AI-focused smartphone chip. The report said mass production of the AI-native smartphone chip could begin in 2028. Investors think this partnership could help create a completely new generation of AI-powered phones, according to Investing.com. Qualcomm stock reached $208.92 during morning trading and touched a fresh 52-week high of $209.23, as noted by Investing.com. Qualcomm's previous big rally happened on April 30, 2026, after the company announced it would start shipping chips to a major hyperscaler data center customer earlier than expected. Qualcomm earlier said those data center chip shipments would begin later this year instead of fiscal 2027. CEO Cristiano Amon said Qualcomm's automotive business crossed $5 billion in annualized revenue for the first time. Cristiano Amon also said the company expects automotive revenue to cross a $6 billion run rate by the end of fiscal 2026. Qualcomm recently reported strong second-quarter earnings, which also helped boost investor confidence. The company posted adjusted earnings per share of $2.65, beating analyst expectations of $2.56. Qualcomm reported quarterly revenue of $10.60 billion, slightly above Wall Street expectations of $10.59 billion, as reported by Investing.com. Investors were impressed because Qualcomm beat estimates while also expanding 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. The Snapdragon 6 Gen 5 platform delivers 20% faster app launches and 18% less screen stutter, according to Qualcomm. Snapdragon 6 Gen 5 also offers 21% better GPU performance and includes AI-powered camera features. The Snapdragon 6 Gen 5 supports both 5G and Wi-Fi 7 connectivity. Qualcomm said the Snapdragon 4 Gen 5 chip brings 77% better GPU performance compared to earlier versions. Snapdragon 4 Gen 5 also supports 90FPS gaming for the Snapdragon 4-series for the first time. Qualcomm said the Snapdragon 4 Gen 5 gives 43% faster app launches and 25% less screen stutter. The Snapdragon 4 Gen 5 platform also supports Dual SIM Dual Active 5G connectivity. Qualcomm said commercial devices using both new chip platforms will launch in the second half of 2026. Smartphone brands including 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, as stated by Investing.com. The company announced an additional $20 billion stock buyback program. Qualcomm also increased its quarterly dividend from $0.89 to $0.92 per share. Analysts became more positive on the stock after these developments. Argus Research raised Qualcomm's price target from $180 to $220 while keeping a "Buy" rating. Argus said Qualcomm's expansion into automotive technology and AI deserves a higher company valuation. Institutional investors also increased their investments in Qualcomm. Gateway Investment Advisers LLC increased its Qualcomm holdings by 2.4% during the fourth quarter, according to SEC filings cited by Investing.com. Another important factor helping Qualcomm stock was the temporary 90-day tariff pause between the US and China. The tariff pause reduced worries about weak smartphone demand in China. China remains Qualcomm's biggest smartphone chip market, making the tariff relief important for investors. The improved US-China trade situation also helped stabilize Android smartphone upgrades in China. The broader US stock market also remained positive, helping Qualcomm shares move higher. The NASDAQ index rose 0.48% while the S&P 500 gained 0.13% during Thursday's session, according to Investing.com. Investors now see Qualcomm as more than just a smartphone chip company. Markets believe Qualcomm is becoming a diversified AI computing company with businesses in smartphones, automotive tech, AI infrastructure and data centers. Qualcomm's next major test will come during its June 24 Investor Day event, where management is expected to give more details about its data center AI business. Analysts believe the company may still be in the early stages of a major long-term growth phase if its AI and data center plans succeed. Q1: Why did Qualcomm stock rise sharply? Qualcomm stock jumped because investors became excited about its 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 Qualcomm and OpenAI may develop an AI-focused smartphone chip that could enter mass production by 2028.

Qualcomm Hits New 52-Week High: Why The AI Data Center Pivot Is Working - Qualcomm (NASDAQ:QCOM)

Qualcomm shares are testing new highs. Why are QCOM shares at highs? What Is Driving Qualcomm's Recent Stock Surge? The latest leg higher follows Qualcomm's fiscal second-quarter double-beat and management's AI-focused messaging, including CEO Cristiano Amon's comments that the company expects to begin shipping data center chips to a large hyperscaler within the year, with more details expected at its June investor day. Qualcomm also highlighted shareholder returns, completing $5.4 billion in buybacks in the first half of fiscal 2026 and announcing a new $20 billion repurchase authorization. Qualcomm's AI roadmap is also widening beyond smartphones, with management pointing to work across CPUs, inference accelerators and custom ASICs following the AlphaWave acquisition. Qualcomm's Key Technical Levels To Watch Qualcomm is in a powerful uptrend on a multi-month view, trading well above its major moving averages: about 37.8% above the 20-day SMA ($148.80) and 30.5% above the 200-day SMA ($157.13). That "extended" positioning can keep momentum traders engaged, but it also raises the odds of sharp pullbacks if buyers pause. Momentum is the key tension right now: RSI is 80.10, which signals the move is stretched and can be more prone to sideways digestion or quick dips even if the bigger trend stays intact. RSI is simply a gauge of how overheated the recent buying has become, and readings this high often mean upside gets harder without fresh catalysts. The longer-term chart still has some baggage from the death cross in February (the 50-day SMA below the 200-day SMA), even though price has clearly recovered and pushed toward the top of its 52-week range. With the stock now pressing near recent highs, traders often watch for either a clean breakout continuation or a "failed push" that snaps back toward faster averages. Key Resistance: $206.00 -- a nearby round-number area just above price and close to the 52-week high zone ($205.95), where upside attempts can stall Key Support: $172.00 -- a nearby prior pivot zone that sits well above the 200-day SMA ($157.13), making it a first "trend-health" check on any pullback What Does Qualcomm Do and How Does It Make Money? Qualcomm develops and licenses wireless technology and designs chips for smartphones, with key patents tied to CDMA and OFDMA standards that underpin 3G, 4G, and 5G networks. Because its IP is licensed by virtually all wireless device makers, the company has a business model that blends chip cycles with licensing economics. It's also the world's largest wireless chip vendor, supplying many top handset makers with leading-edge processors, and it sells RF-front end modules plus chips into automotive and Internet of Things markets. That mix is why management's push into AI-adjacent compute, like data center chips and inference-related workloads, matters: it's an attempt to expand beyond smartphones while leveraging the same core silicon and connectivity strengths. Qualcomm Analyst Ratings And Price Target Forecast Analyst Consensus & Recent Actions: The stock carries a Hold rating with an average price target of $161.89 (based on 35 analysts). Recent analyst moves include: JP Morgan: Neutral (Raises Target to $160.00) (April 30) UBS: Neutral (Raises Target to $170.00) (April 30) TD Cowen: Buy (Raises Target to $200.00) (April 30) Qualcomm's Benzinga Edge Rankings Explained Below is the Benzinga Edge scorecard for Qualcomm, highlighting its strengths and weaknesses compared to the broader market: The Verdict: Qualcomm's Benzinga Edge signal reveals a momentum-led profile backed by very strong Quality, which fits the stock's ability to rise even on a down market day. The main trade-off is that Value and Growth read more moderate, so the chart may stay sensitive to any cooling in AI enthusiasm or guidance expectations. Qualcomm Stock Price Movement Today QCOM Stock Price Activity: Qualcomm shares were up 4.39% at $201.03 at the time of publication on Thursday, according to Benzinga Pro data. Image: Shutterstock This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.