What Happened to Qualcomm Inc. Stock (QCOM)?
Qualcomm Inc. (QCOM) has been actively diversifying its business beyond its traditional smartphone chip market, focusing heavily on automotive, IoT, and particularly the burgeoning AI and data center segments. Despite recent declines in handset revenue, the company reported strong growth in its automotive and IoT divisions and is targeting significant expansion in AI chip sales and non-handset revenues by fiscal 2029. Qualcomm has also achieved key legal victories and made strategic acquisitions to bolster its AI capabilities.
Quick Answer
Qualcomm Inc. Stock (QCOM) is currently trading around $161.27 as of July 29, 2026, reflecting a period of strategic diversification and some market volatility. The company recently reported mixed Q3 fiscal 2026 earnings, with handset revenue declining but automotive and IoT segments showing robust growth. Qualcomm is aggressively expanding into AI and data center markets, projecting over $15 billion in AI chip sales by fiscal 2029, and has secured significant partnerships, such as becoming BMW Group's lead compute silicon provider. Recent legal victories against Arm have also solidified its position in custom CPU development.
📊Key Facts
📅Complete Timeline13 events
Qualcomm Raises Non-Handset Revenue Target
Qualcomm initially set a target for non-handset revenues to reach a certain level by fiscal 2029, which would later be significantly increased.
Jury Sides with Qualcomm in Arm-Nuvia Dispute
A Delaware jury largely sided with Qualcomm, finding no breach of Nuvia's chip architecture licensing agreement with Arm, allowing Qualcomm to use Nuvia technology under its own license.
Qualcomm Files New Lawsuit Against Arm
Following the initial verdict, Qualcomm filed a separate lawsuit against Arm for breach of contract and improper interference with customer relationships, with a trial expected in March 2026.
Qualcomm Achieves Complete Victory Over Arm in Nuvia Litigation
A U.S. District Court judge granted Qualcomm a complete victory, rejecting Arm's remaining claims and attempts to overturn the December 2024 jury verdict, confirming Qualcomm's right to develop custom CPU cores.
Which? v Qualcomm UK Trial Commences
A trial began in the UK Competition Appeal Tribunal for the 'Which? v Qualcomm' class action lawsuit, focusing on alleged abuse of dominant market positions.
Which? v Qualcomm Class Representative Seeks Withdrawal
The Class Representative in the UK lawsuit applied to withdraw the proceedings, concluding that Qualcomm did not coerce partners or infringe competition laws.
Qualcomm Reports Q2 FY26 Earnings
Qualcomm reported Q2 fiscal 2026 earnings per share of $2.65, beating estimates, with revenue of $10.60 billion.
Qualcomm Investor Day: Major AI and Diversification Targets Announced
Qualcomm significantly raised its fiscal 2029 non-handset revenue target to $40 billion and unveiled a comprehensive data center AI infrastructure strategy targeting over $15 billion in revenue by fiscal 2029.
Qualcomm Signs Deals with Hyperscalers for AI Chips
Qualcomm announced deals to supply three major hyperscalers, including Microsoft and Meta Platforms, with AI processing chips, reinforcing its data center AI strategy.
Qualcomm Informs Customers of Double-Digit Price Increases
Qualcomm notified customers of upcoming double-digit percentage price increases on its chips for products shipped after September 1, 2026, citing rising supplier costs.
Qualcomm Completes Modular Inc. Acquisition
Qualcomm announced the completion of its acquisition of Modular Inc., an AI-native software infrastructure company, to accelerate generative and agentic AI technologies.
Qualcomm Named BMW Group's Lead Compute Silicon Provider
Qualcomm and BMW Group announced a major agreement for Qualcomm to provide compute silicon for BMW's next-generation digital cockpit and ADAS/AD systems through the next decade.
Qualcomm Reports Q3 FY26 Earnings
Qualcomm reported Q3 fiscal 2026 revenue of $9.95 billion (beating estimates) and adjusted EPS of $2.21 (missing estimates), with handset revenue down 20% but automotive up 61%.
🔍Deep Dive Analysis
Qualcomm Inc. (QCOM) has navigated a dynamic period marked by a strategic pivot away from its historical reliance on smartphone chip sales and patent licensing towards high-growth areas like automotive, Internet of Things (IoT), and artificial intelligence (AI) data centers. This diversification strategy gained significant momentum in the mid-2020s, driven by a recognition of slowing smartphone market growth and intense competition.
One of the key turning points has been Qualcomm's aggressive push into the AI and data center markets. At its Investor Day in June 2026, CEO Cristiano Amon outlined ambitious targets, projecting over $15 billion in annual data center AI chip sales by fiscal 2029, up from an estimated $5 billion in 2027. The company also raised its overall non-handset revenue target to $40 billion by fiscal 2029, nearly double its prior target from November 2024. This strategy involves developing custom AI inference silicon and data center CPUs, with initial shipments expected later in calendar year 2026. To support this, Qualcomm completed the acquisition of Modular Inc., an AI-native software infrastructure company, on July 29, 2026, aiming to create an open software foundation for generative and agentic AI.
In the automotive sector, Qualcomm has demonstrated consistent strength. For Q3 fiscal 2026, automotive revenue surged 61% year-over-year to $1.6 billion, marking 23 consecutive quarters of double-digit growth in this segment. On July 29, 2026, Qualcomm announced a major agreement with BMW Group to be its lead compute silicon provider for digital cockpits and next-generation ADAS/AD systems through the next decade, utilizing its Snapdragon Digital Chassis portfolio. The company expects automotive revenues to reach $10 billion by fiscal 2029.
Legal battles have also played a significant role. In September 2025, Qualcomm achieved a complete victory in litigation against Arm Ltd. regarding its acquisition of Nuvia, with a U.S. District Court judge rejecting Arm's claims and upholding a December 2024 jury verdict in Qualcomm's favor. This decision confirmed Qualcomm's right to develop custom CPU cores using Nuvia technology. However, Qualcomm's separate lawsuit against Arm for breach of contract is still ongoing, with a trial expected around March 2026. Additionally, a class action lawsuit in the UK, 'Which? v Qualcomm,' alleging abuse of dominant market positions, saw a trial commence in October 2025, but the Class Representative applied to withdraw the proceedings in February 2026, concluding that Qualcomm did not infringe competition laws or cause inflated prices.
Financially, Qualcomm reported Q3 fiscal 2026 revenue of $9.95 billion, exceeding estimates, but adjusted EPS of $2.21 missed consensus. Handset revenue declined 20% year-over-year, though management indicated this quarter represented the bottom for handset revenue. The company also informed customers in July 2026 of double-digit price increases on chips for products shipped after September 1, 2026, citing higher supplier costs. As of July 29, 2026, QCOM stock was trading at $161.27, with a 52-week high of $259.92 and a low of $121.99. The company's market capitalization stands at approximately $169.97 billion. Analysts have a median price target of $186.00, with some optimistic forecasts reaching $300.00, contingent on successful diversification into AI computing and automotive platforms.
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