Qualcomm (QCOM) Stock Hits 52-Week High on OpenAI Chip Deal

TLDR

• QCOM surged ~8.49% to $208.92, hitting a new 52-week high of $209.23
• Reports of an OpenAI partnership to develop an AI-native smartphone chip, targeting mass production in 2028, drove the move
• Q2 earnings beat estimates: EPS of $2.65 vs. $2.56 expected; revenue of $10.60 billion
• Automotive revenue surpassed $5 billion annualized; CEO expects a $6 billion run rate by end of fiscal 2026
• Argus raised its price target from $180 to $220, maintaining a Buy rating

Qualcomm stock jumped roughly 8.49% in morning trading on May 7, reaching $208.92 and briefly touching a new 52-week high of $209.23.

QUALCOMM Incorporated, QCOM

The move came after reports that Qualcomm is partnering with OpenAI to develop an AI-native smartphone chip, with mass production targeted for 2028.

That news landed on top of already strong momentum from the prior week’s earnings report.

On April 29, Qualcomm posted Q2 adjusted EPS of $2.65, beating the consensus estimate of $2.56. Revenue came in at $10.60 billion, just above the $10.59 billion analysts expected.

The automotive segment crossed a milestone in the quarter, surpassing $5 billion in annualized revenue for the first time. CEO Cristiano Amon said the company expects to exit fiscal 2026 at a run rate above $6 billion.

Amon also flagged that a custom silicon engagement with a leading hyperscaler is on track for initial shipments later this calendar year.

Capital Returns and Analyst Upgrades

Qualcomm closed its $2.3 billion acquisition of Alphawave to expand its data center footprint. The board also authorized an additional $20 billion in stock repurchases.

The quarterly dividend was raised from $0.89 to $0.92 per share, payable June 25 to holders of record as of June 4.

Argus lifted its price target on QCOM from $180 to $220, keeping a Buy rating, pointing to automotive and AI growth as justification.

The broader analyst consensus remains at “Hold” with an average target of $172.40, based on 1 Strong Buy, 8 Buy, 16 Hold, and 3 Sell ratings.

Macro Tailwind and Institutional Activity

A 90-day US-China tariff pause also helped. It removed the China handset inventory overhang that had weighed on the stock following earnings, and supported the Android upgrade cycle in China — Qualcomm’s largest handset market.

The Nasdaq was up 0.48% and the S&P 500 gained 0.13% on the day, providing a constructive backdrop.

On the institutional side, several firms added to their positions in Q4. Sequoia Financial Advisors boosted its stake by 5.7%, bringing its holdings to 143,690 shares valued at roughly $24.58 million.

Brighton Jones LLC increased its position by 116.6% in Q4. Revolve Wealth Partners lifted its stake by 15.4% during the same period.

Insider activity was mixed. CEO Cristiano Amon sold 10,000 shares on May 4 at an average of $180.00, totaling $1.8 million, under a pre-arranged 10b5-1 plan. CAO Patricia Grech sold 192 shares on April 30 at $172.00.

The company’s next major event is its Investor Day on June 24, where management is expected to provide more detail on its data center opportunity.

QCOM carries a market cap of approximately $203 billion, a P/E of 20.94, and a 1-year low of $121.99.

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