Qualcomm CEO Highlights Edge AI's Importance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy QCOM?
Source: Fool
- Future of Edge AI: Qualcomm CEO Cristiano Amon emphasized at the 2026 Web Summit and Davos Forum that edge AI will be crucial for future competition, where the convergence of devices, data, and users will drive market growth, despite potential short-term overvaluation.
- Enhanced Shareholder Returns: Despite a 25% drop in stock price year-to-date, Qualcomm announced a $20 billion share buyback and increased its quarterly dividend from $0.89 to $0.92 per share last month, further solidifying its position as a leading income stock in the tech sector.
- Automotive Business Growth: Qualcomm's automotive revenue reached $1.1 billion in Q1 fiscal 2026, a 15% year-over-year increase, marking the second consecutive quarter above $1 billion, showcasing strong performance in design wins with a future revenue pipeline of $45 billion.
- Market Valuation Potential: Trading at around $125, Qualcomm is approximately 22% below the consensus analyst price target, with a forward P/E ratio of about 12, indicating a gap between its strong execution in automotive and IoT and current market pricing, suggesting potential for revaluation.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy QCOM?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on QCOM
Wall Street analysts forecast QCOM stock price to rise
16 Analyst Rating
10 Buy
5 Hold
1 Sell
Moderate Buy
Current: 127.750
Low
165.00
Averages
197.14
High
225.00
Current: 127.750
Low
165.00
Averages
197.14
High
225.00
About QCOM
Qualcomm Incorporated is engaged in the development and commercialization of foundational technologies for the wireless industry, including third generation (3G), fourth generation (4G) and fifth generation (5G) wireless connectivity, and high-performance and low-power computing, including on-device artificial intelligence. Its segments include Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL) and Qualcomm Strategic Initiatives. QCT develops and supplies integrated circuits and system software based on 3G/4G/5G and other technologies, including radio frequency front-end, digital cockpit and advanced driver assistance and automated driving, Internet of things including consumer electronic devices, industrial devices and edge networking products. QTL grants licenses or otherwise provides rights to use portions of its intellectual property portfolio that includes certain patent rights essential to and/or useful in the manufacture and sale of certain wireless products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Qualcomm's Growth Potential in Edge AI
- Edge Computing Advantage: Qualcomm CEO Cristiano Amon emphasized at the 2026 Web Summit and Davos Forum that edge AI will be crucial for future competition, enabling AI workloads to run on local devices for faster response times and stronger privacy protection.
- Automotive Business Growth: Qualcomm's automotive revenue reached $1.1 billion in Q1 fiscal 2026, a 15% year-over-year increase, with a design win pipeline totaling $45 billion, indicating strong future revenue potential, targeting $22 billion in automotive and IoT revenue by fiscal 2029.
- New Product Launch: At CES 2026, Qualcomm unveiled the Snapdragon X2 Elite and X2 Plus processors, featuring 85 TOPS of on-device AI computing power, with projections that laptops based on Arm Holdings CPUs could capture 20% to 25% of the market share by 2027.
- Share Buyback Plan: Despite a 25% decline in stock price year-to-date, Qualcomm announced a $20 billion share buyback and increased its quarterly dividend from $0.89 to $0.92 per share, further solidifying its position as a leading income stock in the tech sector.
See More
Qualcomm CEO Highlights Edge AI's Importance
- Future of Edge AI: Qualcomm CEO Cristiano Amon emphasized at the 2026 Web Summit and Davos Forum that edge AI will be crucial for future competition, where the convergence of devices, data, and users will drive market growth, despite potential short-term overvaluation.
- Enhanced Shareholder Returns: Despite a 25% drop in stock price year-to-date, Qualcomm announced a $20 billion share buyback and increased its quarterly dividend from $0.89 to $0.92 per share last month, further solidifying its position as a leading income stock in the tech sector.
- Automotive Business Growth: Qualcomm's automotive revenue reached $1.1 billion in Q1 fiscal 2026, a 15% year-over-year increase, marking the second consecutive quarter above $1 billion, showcasing strong performance in design wins with a future revenue pipeline of $45 billion.
- Market Valuation Potential: Trading at around $125, Qualcomm is approximately 22% below the consensus analyst price target, with a forward P/E ratio of about 12, indicating a gap between its strong execution in automotive and IoT and current market pricing, suggesting potential for revaluation.
See More
US Stocks Fluctuate Amid Inflation Concerns Impacting Markets
- Market Performance: The S&P 500 Index rose by 0.15%, reaching a five-week high, while the Nasdaq 100 Index increased by 0.35%, marking a six-week high, indicating market resilience amid easing inflation concerns.
- Consumer Sentiment Decline: The University of Michigan's consumer sentiment index fell to a record low of 47.6, significantly below the expected 51.5, reflecting pessimism about the economic outlook that could negatively impact future consumer spending.
- Oil Price Volatility: Despite the Strait of Hormuz remaining closed, WTI crude oil prices are experiencing volatility due to ongoing concerns about the situation in Iran, with over 800 vessels trapped, affecting global energy supply.
- Tech Stock Pressure: Software stocks are under pressure due to fears of AI disruption, with ServiceNow and Datadog both down over 7%, highlighting uncertainty in the tech sector's future, which may affect investor confidence.
See More
US Stocks Fluctuate Slightly as Inflation Concerns Ease
- Market Performance: The S&P 500 Index rose by 0.07%, reaching a five-week high, while the Nasdaq 100 Index increased by 0.37%, marking a six-week high, reflecting market optimism due to easing inflation concerns.
- Inflation Data Impact: The US March Consumer Price Index rose 3.3% year-over-year, the largest increase in two years but slightly below the expected 3.4%, leading to a reduced market expectation of a 2% chance for a Fed rate hike.
- Oil Price Volatility: WTI crude oil prices are fluctuating due to the near closure of shipping through the Strait of Hormuz, with over 800 vessels trapped, raising concerns about global energy supply amid heightened focus on the Iranian situation.
- Tech Stock Pressure: Software stocks are under pressure due to AI disruption fears, with ServiceNow and Datadog down over 6% and 5% respectively, indicating market uncertainty regarding the future of the tech sector.
See More
Snap Inc. Subsidiary Launches New AR Eyewear with AI
- New Product Launch: Snap Inc.'s subsidiary Specs is set to launch a new AR eyewear product later this year, featuring on-device AI and advanced augmented reality experiences, indicating Snap's ambition to advance in consumer AR glasses.
- Agreement Expansion: The multi-year deal with Qualcomm will power Specs' new wearable device with Qualcomm's Snapdragon XR solutions, expected to enhance product performance and drive AR technology applications.
- Poor Stock Performance: Snap Inc.'s shares have declined by 95% over the past five years, with more than a third of the losses occurring this year, reflecting market concerns about its long-term growth potential.
- Divergent Analyst Ratings: According to Koyfin, of the 44 analysts, 31 recommend a 'Hold', while Wells Fargo lowered its target price from $8 to $6, indicating a cautious outlook on Snap's future performance.
See More
Qualcomm and Snap Forge Multi-Year AR Eyewear Partnership
- Partnership Agreement: Qualcomm and Snap have signed a multi-year agreement to power the upcoming Specs augmented reality eyewear with Snapdragon system-on-chip, marking their first flagship collaboration in the AR space and expected to drive technological advancements in future products.
- Product Features: Specs are standalone, see-through glasses that allow users to see, hear, and interact with digital content as if it were in the physical space, enhancing user immersion and likely appealing to a broad consumer base.
- Developer Tool Support: Specs also offer Lens Studio, a suite of advanced developer tools that enables augmented reality experiences across Specs, Snapchat, and other services, further expanding the creative space for developers.
- Technological Advantages: The Snapdragon XR platform combines edge AI with high-performance, low-power computing, providing the foundation for intelligent, context-aware experiences that enable faster and more private interactions, thereby enhancing the product's market competitiveness.
See More
Qualcomm's Growth Potential in Edge AI
- Edge Computing Advantage: Qualcomm CEO Cristiano Amon emphasized at the 2026 Web Summit and Davos Forum that edge AI will be crucial for future competition, enabling AI workloads to run on local devices for faster response times and stronger privacy protection.
- Automotive Business Growth: Qualcomm's automotive revenue reached $1.1 billion in Q1 fiscal 2026, a 15% year-over-year increase, with a design win pipeline totaling $45 billion, indicating strong future revenue potential, targeting $22 billion in automotive and IoT revenue by fiscal 2029.
- New Product Launch: At CES 2026, Qualcomm unveiled the Snapdragon X2 Elite and X2 Plus processors, featuring 85 TOPS of on-device AI computing power, with projections that laptops based on Arm Holdings CPUs could capture 20% to 25% of the market share by 2027.
- Share Buyback Plan: Despite a 25% decline in stock price year-to-date, Qualcomm announced a $20 billion share buyback and increased its quarterly dividend from $0.89 to $0.92 per share, further solidifying its position as a leading income stock in the tech sector.
See More
Qualcomm CEO Highlights Edge AI's Importance
- Future of Edge AI: Qualcomm CEO Cristiano Amon emphasized at the 2026 Web Summit and Davos Forum that edge AI will be crucial for future competition, where the convergence of devices, data, and users will drive market growth, despite potential short-term overvaluation.
- Enhanced Shareholder Returns: Despite a 25% drop in stock price year-to-date, Qualcomm announced a $20 billion share buyback and increased its quarterly dividend from $0.89 to $0.92 per share last month, further solidifying its position as a leading income stock in the tech sector.
- Automotive Business Growth: Qualcomm's automotive revenue reached $1.1 billion in Q1 fiscal 2026, a 15% year-over-year increase, marking the second consecutive quarter above $1 billion, showcasing strong performance in design wins with a future revenue pipeline of $45 billion.
- Market Valuation Potential: Trading at around $125, Qualcomm is approximately 22% below the consensus analyst price target, with a forward P/E ratio of about 12, indicating a gap between its strong execution in automotive and IoT and current market pricing, suggesting potential for revaluation.
See More
US Stocks Fluctuate Amid Inflation Concerns Impacting Markets
- Market Performance: The S&P 500 Index rose by 0.15%, reaching a five-week high, while the Nasdaq 100 Index increased by 0.35%, marking a six-week high, indicating market resilience amid easing inflation concerns.
- Consumer Sentiment Decline: The University of Michigan's consumer sentiment index fell to a record low of 47.6, significantly below the expected 51.5, reflecting pessimism about the economic outlook that could negatively impact future consumer spending.
- Oil Price Volatility: Despite the Strait of Hormuz remaining closed, WTI crude oil prices are experiencing volatility due to ongoing concerns about the situation in Iran, with over 800 vessels trapped, affecting global energy supply.
- Tech Stock Pressure: Software stocks are under pressure due to fears of AI disruption, with ServiceNow and Datadog both down over 7%, highlighting uncertainty in the tech sector's future, which may affect investor confidence.
See More
US Stocks Fluctuate Slightly as Inflation Concerns Ease
- Market Performance: The S&P 500 Index rose by 0.07%, reaching a five-week high, while the Nasdaq 100 Index increased by 0.37%, marking a six-week high, reflecting market optimism due to easing inflation concerns.
- Inflation Data Impact: The US March Consumer Price Index rose 3.3% year-over-year, the largest increase in two years but slightly below the expected 3.4%, leading to a reduced market expectation of a 2% chance for a Fed rate hike.
- Oil Price Volatility: WTI crude oil prices are fluctuating due to the near closure of shipping through the Strait of Hormuz, with over 800 vessels trapped, raising concerns about global energy supply amid heightened focus on the Iranian situation.
- Tech Stock Pressure: Software stocks are under pressure due to AI disruption fears, with ServiceNow and Datadog down over 6% and 5% respectively, indicating market uncertainty regarding the future of the tech sector.
See More
Snap Inc. Subsidiary Launches New AR Eyewear with AI
- New Product Launch: Snap Inc.'s subsidiary Specs is set to launch a new AR eyewear product later this year, featuring on-device AI and advanced augmented reality experiences, indicating Snap's ambition to advance in consumer AR glasses.
- Agreement Expansion: The multi-year deal with Qualcomm will power Specs' new wearable device with Qualcomm's Snapdragon XR solutions, expected to enhance product performance and drive AR technology applications.
- Poor Stock Performance: Snap Inc.'s shares have declined by 95% over the past five years, with more than a third of the losses occurring this year, reflecting market concerns about its long-term growth potential.
- Divergent Analyst Ratings: According to Koyfin, of the 44 analysts, 31 recommend a 'Hold', while Wells Fargo lowered its target price from $8 to $6, indicating a cautious outlook on Snap's future performance.
See More
Qualcomm and Snap Forge Multi-Year AR Eyewear Partnership
- Partnership Agreement: Qualcomm and Snap have signed a multi-year agreement to power the upcoming Specs augmented reality eyewear with Snapdragon system-on-chip, marking their first flagship collaboration in the AR space and expected to drive technological advancements in future products.
- Product Features: Specs are standalone, see-through glasses that allow users to see, hear, and interact with digital content as if it were in the physical space, enhancing user immersion and likely appealing to a broad consumer base.
- Developer Tool Support: Specs also offer Lens Studio, a suite of advanced developer tools that enables augmented reality experiences across Specs, Snapchat, and other services, further expanding the creative space for developers.
- Technological Advantages: The Snapdragon XR platform combines edge AI with high-performance, low-power computing, providing the foundation for intelligent, context-aware experiences that enable faster and more private interactions, thereby enhancing the product's market competitiveness.
See More
