No connection

Search Results

Earnings Score 68 Bullish

Qualcomm Shares Surge on Data Center Expansion Despite Revenue Dip

May 01, 2026 16:31 UTC
QCOM
Short term

Qualcomm stock climbed nearly 18% this week following second-quarter results that beat analyst expectations. Investors are focusing on the company's strategic entry into the data center market via a new partnership with a major hyperscaler.

  • Weekly stock price increase of nearly 18%
  • Q2 revenue of $10.6 billion beat analyst estimates
  • Non-GAAP EPS of $2.65 outperformed expectations
  • New partnership with a leading hyperscaler for data center chips
  • Data center shipments scheduled to commence in December
  • Price target hikes from J.P. Morgan, Wells Fargo, and Morgan Stanley

Qualcomm (NASDAQ: QCOM) saw a significant rally this week, with shares rising approximately 18% as investors looked past year-over-year declines in top and bottom-line figures. The surge follows the release of second-quarter results that, while showing a contraction in growth, outperformed consensus estimates. For the quarter, Qualcomm reported revenue of $10.6 billion, representing a 2% decrease year-over-year. Non-GAAP net income fell 10% to $2.84 billion, or $2.65 per share. Despite these declines, the results beat analyst projections of $10.56 billion in revenue and $2.55 per share in adjusted earnings. The primary catalyst for the bullish price action was CEO Cristiano Amon's announcement regarding the company's data center chip business. Amon revealed that Qualcomm has secured a "leading hyperscaler" as a customer, with shipments scheduled to begin in December. This move signals a strategic expansion beyond mobile chipsets into the high-growth AI infrastructure market. Wall Street responded with a series of price target adjustments. J.P. Morgan and Wells Fargo both raised their price targets to $160, while Morgan Stanley increased its target to $146. However, these firms largely maintained their neutral or underweight ratings, suggesting that while the valuation is adjusting upward, long-term conviction remains mixed.

Sign up free to read the full analysis

Create a free account to unlock full AI-curated market articles, personalized alerts, and more.

Create Free Account Already have an account? Sign In
Share this article

Related Articles

Score 52 Bullish

Linde Delivers Broad-Based Earnings Beat Amid Data Center Tailwinds

May 01, 17:32

Score 52 Bearish

Roblox Slashes Revenue Guidance as Age-Verification Measures Hit Engagement

May 01, 17:24

Stay Ahead of the Markets

Join thousands of traders using AI-powered market intelligence. Get personalized insights, real-time alerts, and advanced analysis tools.

Get Started Free View Plans
Features Terminal AI Assistant Analysis Market News Pricing
Start Trading with AI Already have an account? Sign In
Home
Terminal
AI Chat
Markets
Profile