$Qualcomm(QCOM)$ I have been trimming $Qualcomm(QCOM)$ lately. Is the company lagging behind?
Yes — QCOM has been lagging, especially compared with AMD, NVDA and some other AI/semiconductor names. But the important question is why it’s lagging.
As of the latest close, QCOM was around $177.72, versus a 52-week high of about $259.92. Its 2026 YTD return was only about +5.5%, compared with roughly +11.8% for the S&P 500.
Why QCOM has lagged
1. Smartphone weakness / Apple modem transition
This remains the biggest near-term issue. Qualcomm is still heavily exposed to handsets, while Apple is increasingly using its own modem technology. Memory/supply constraints have also pressured the handset market. QCOM’s FY26 Q3 revenue was $9.9B, and management specifically cited the challenging memory and supply environment.
2. The market isn’t valuing QCOM like an AI leader — yet
Compare the stories:
* AMD: AI GPUs → enormous potential data-centre growth
* NVDA: dominant AI accelerator ecosystem
* QCOM: smartphones + automotive + IoT + emerging AI data centre
So money has naturally flowed toward the more obvious AI beneficiaries.
But QCOM is undergoing a potentially important transition
This is what makes it interesting now.
At its June Investor Day, Qualcomm raised its FY2029 non-handset revenue target to $40B, roughly double its previous target. It is targeting:
* $10B automotive revenue
* >$14B IoT revenue
* >$15B data-centre revenue
* >$18 non-GAAP EPS in FY2029
And this isn’t just a presentation anymore.
Last week Qualcomm announced a multi-generational AI data-centre collaboration with Amazon/AWS, involving customized silicon and optical connectivity.
That’s significant because it gives QCOM a potential path from:
mobile chip company → diversified edge/automotive/AI infrastructure company.
The valuation is where QCOM gets interesting
Approx. price $178 ~$560
Forward P/E ~18.7× Very high
TTM P/E ~21.6× ~144×
QCOM’s forward P/E around 19× is dramatically below AMD’s current multiple.
That means QCOM doesn’t need to grow nearly as explosively as AMD for the investment to work.
Where I would watch QCOM
For the stock itself, I would view the levels approximately like this:
$175–180 → reasonable initial-entry area
$165–170 → stronger accumulation area
$150–160 → potentially attractive valuation if fundamentals remain intact
>$200 → market beginning to price in successful AI/data-centre diversification
$230–250 → would require much more evidence that the new growth businesses are delivering
Interestingly, Wall Street is quite divided: current published targets range from roughly $160 to $270, with several analysts around $190–235.
So I wouldn’t consider QCOM a “failed” semiconductor stock that’s simply being left behind. It’s more of a transition story.
If you’re looking for maximum AI upside, AMD is the more direct exposure.
If you’re looking for a semiconductor stock that has been left behind but has a plausible 3–5 year catalyst for catching up, QCOM is quite interesting around the $175–180 area.
For your portfolio, I would be more comfortable starting a QCOM position around $175–180 and adding on weakness, rather than chasing AMD at $560.
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