Street View: Data center ambitions take center stage as Qualcomm moves beyond handsets

QUALCOMM Incorporated

30/07/2026 14:15

** Qualcomm QCOM.O on Wednesday forecast weaker-than-expected Q4 profit and said revenue from Apple products would decline faster than expected, but signaled growth in data center and other non-handset segments would more than compensate for revenue loss by fiscal 2027
** Shares fell 3% premarket 
     
APPLE FALLS OFF THE QUALCOMM TREE
** HSBC ("hold," PT: $165) says investors are likely to focus on the company's ability to scale its data center business, though execution and margin risks remain
** Bernstein ("market-perform," PT: $165) says co has the potential to reduce its dependence on smartphones as data center and adjacent businesses scale in the coming years
** Morgan Stanley ("equal-weight," PT: $220) says investors are likely to watch how quickly those segments scale and offset margin pressure from the Apple transition
** UBS ("neutral," PT: $170) says recovery in China Android demand and a ramp-up in data-center revenue should largely offset the Apple headwind, helping shift investor focus toward co's diversification efforts     
     

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