Qualcomm earnings analysis: questions answered and next catalysts

Baird reduced its price target for Qualcomm to $320 from $400, maintaining an Outperform rating. The firm sees 104% upside, citing potential in data center chips for Amazon and another hyperscaler, despite shrinking phone chip sales and rising costs. Qualcomm's stock fell 9.49% on November 5, closing at $156.75.

The Nasdaq Composite fell 5.52% on Thursday, its biggest drop in 19 months, as chipmakers like Nvidia (down 9%) and data center companies declined on concerns over potential AI regulations following Democratic wins in the US Congress. The S&P 500 also dropped 4.36%, erasing $3 trillion in market value. The Nasdaq confirmed a technical correction, down over 10% from its October 6 record high. Analysts noted that slower AI infrastructure development could impact tech stocks.

Qualcomm (QCOM) reported Q4 results exceeding expectations, but analysts lowered price targets due to concerns about rising costs and handset market weakness. Shares fell in premarket trading. Analysts note progress in data centers, automotive, and IoT, with data center revenue expected to reach $7B annually by FY27. TD Cowen, Barclays, and Bank of America adjusted targets and ratings, citing margin pressure and handset revenue declines.

TD Cowen kept its Buy rating on Qualcomm but cut its price target to $185 from $200, citing a 7.5% reduction. The new target suggests a 6.8% upside from Qualcomm's Nov 4 close of $173.19. Recent analyst price targets for Qualcomm range from $150 to $205.

QUALCOMM (QCOM) reported Q4 2026 earnings, highlighting sequential growth in China Android business and flat to down global handset units in 2027. Key agreements with Apple and Huawei were renewed, and non-handset revenues in QCT are expected to grow over 60% year over year. Data center revenues are projected to exceed $650 million in the December quarter, and automotive revenues reached an $8 billion annualized run rate.

AMD shares dropped 14.6% and Nvidia fell 7.5% on Thursday due to concerns about AI chip demand. The Nasdaq Composite and S&P 500 also declined. Qualcomm's shares fell 11.5% after missing smartphone chip sales expectations. The Philadelphia Semiconductor Index was down nearly 10%.