Street View: AI upside beckons, but Qualcomm still has something to prove

QUALCOMM Incorporated

05/11/2026 11:59

** Qualcomm QCOM.O fell short of Wall St estimates for Q4 smartphone chip sales, hurt by weak handset demand and lower revenue from Apple
** Shares were down 9.2% premarket 
     
OLD CASH COWS, NEW MOONSHOTS
** Morgan Stanley ("equal weight," PT: $197) says co's AI opportunity remains promising, but will take time to translate into a higher-margin business, with the firm's strong execution and expansion into autos supporting confidence
** Bernstein ("market perform," PT: $155) says co's diversification beyond handsets is gaining traction, but margin pressures and a weak smartphone outlook could keep the stock's valuation subdued for now
** J.P. Morgan ("neutral," PT: $200) says stronger growth visibility is yet to improve Qualcomm's near-term earnings outlook, with weaker EPS outlook overshadowing a revenue beat due to Apple's roll-off and cost pressures
** TD Cowen ("buy," PT: $185) says handset diversification and early data center gains are encouraging, but it needs meaningful XPU and CPU wins to prove it can profitably capture the broader data center opportunity
     

(Reporting by Rashika Singh in Bengaluru)
((rashika.singh@thomsonreuters.com))