San Diego, May 8, 2026, 05:07 PDT
- Qualcomm shares moved up early as Daiwa shifted its rating to Outperform.
- That’s another boost for a runup fueled by optimism over AI-powered phones, vehicles, and data centers.
- Key risks linger: sluggish smartphone demand and lofty chip valuations.
Qualcomm jumped roughly 6% in early Friday trading, after Daiwa Securities bumped its rating up to Outperform from Neutral. The firm also raised its price target on the chipmaker to $225, throwing more momentum behind one of the U.S. semiconductor sector’s stronger comebacks.
The call takes on extra weight now, as investors seem willing to shrug off Qualcomm’s underwhelming short-term outlook and focus on its potential in AI-powered smartphones, automotive semis, and data-center chips—a shift that could help the stock’s valuation recover. Daiwa’s Louis Miscioscia pointed to revenue growth drivers and described valuation as modest, per Investing.com.
Qualcomm caught a lift from the rebound in chip stocks. Shares jumped 4.8% ahead of the bell, Reuters said, as semiconductors stabilized. Nvidia was trading up as well, while Microchip Technology advanced on the back of a strong outlook.
Last week, the San Diego-based company posted fiscal Q2 revenue at $10.6 billion, with non-GAAP earnings coming in at $2.65 per share. Automotive revenue reached an all-time quarterly high; together, automotive and internet-of-things revenue climbed 20% year-over-year.
Qualcomm CEO Cristiano Amon described the current memory market as challenging, but pointed out that AI agents are shifting the company’s direction. He also confirmed that Qualcomm’s first data-center shipment to a major hyperscaler customer is set to go out before the end of the year.
The company has been working to convince investors it’s capable of expanding past its mainstay in handset chips. Back in March, the board signed off on a fresh $20 billion buyback plan and bumped up the quarterly dividend to 92 cents from the previous 89 cents per share.
The competition isn’t letting up. Arm flagged ongoing weakness in the smartphone market this week. Nvidia, for its part, stays the main yardstick for AI chip performance. Meanwhile, MediaTek is now linked to rumors of OpenAI-related smartphone processor projects.
There’s a risk the market could be outpacing the fundamentals. Qualcomm’s third-quarter forecast let investors down last week. A drawn-out smartphone downturn, memory shortages, or weaker data-center demand could still undercut the diversification case.
Broader market forces could play a role here. Barclays strategist Emmanuel Cau flagged that the semiconductor rally appears “starting to look extended,” adding that any continued run in equities might hinge on whether Gulf tensions ease and oil flows recover. Reuters
