San Diego, California-based QUALCOMM Incorporated (QCOM) is a leading global semiconductor and wireless technology company that develops chips and software powering smartphones, connected devices, automobiles, industrial equipment, and Internet of Things (IoT) applications. It is valued at a market cap of $171.7 billion.
Qualcomm has been left behind in the semiconductor rally. While AI-fueled chip stocks have powered the broader sector higher, shares of QCOM have declined 4% over the past year, trailing the S&P 500 Index’s ($SPX) 14.8% surge. The gap has widened in 2026, with the stock down 9% year to date compared to the benchmark's 6.9% advance.
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Narrowing the focus, QCOM has also underperformed the State Street SPDR S&P Semiconductor ETF’s (XSD) 67.1% returns over the past 52 weeks and 39.7% YTD rise.
www.barchart.com On Jul. 29, Qualcomm reported mixed fiscal third-quarter 2026 results, with revenue of $9.95 billion topping Wall Street estimates but declining 4% year over year. Adjusted earnings declined 20.2% from the year-ago quarter to $2.21 per share, narrowly missing expectations as weaker smartphone chip sales and higher input costs weighed on profitability.
While strong growth in the automotive and IoT segments provided some support, Qualcomm now expects adjusted profit to be between $2.05 and $2.25 per share in the fourth quarter, below analysts' average estimate of $2.36, which overshadowed the quarter and sent its shares 4.4% lower.
For the current fiscal year, ending in September, analysts expect QCOM’s EPS to decline 20.8% year over year to $7.98. The company’s earnings surprise history is mixed. It exceeded or met the consensus estimates in three of the last four quarters, while missing on one quarter.
Among the 34 analysts covering the stock, the consensus rating is a “Moderate Buy,” which is based on nine “Strong Buy,” two "Moderate Buy,” 19 “Hold,” two "Moderate Sell,” and two “Strong Sell” ratings.
www.barchart.com The consensus is bullish compared with two months ago, when the stock had an overall “Hold” rating.
On Jul. 13, TD Cowen reaffirmed its "Buy" rating on Qualcomm and raised its price target to $225 from $200, reflecting increased confidence in the chipmaker's growth prospects.
Its mean price target of $219.90 represents a premium of 41.3% from the current market price. The Street-high price target of $205 suggests a 101.7% potential upside from the current levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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