$QCOM

Intel and Qualcomm are reportedly in talks to acquire AI chip startup Tenstorrent, led by Jim Keller. Bloomberg reports a potential deal could value Tenstorrent above $5 billion. Intel's shares rose on the news. Tenstorrent is also pursuing a funding round, raising $1.29 billion in August at a valuation of $5.8B-$6.4B. All parties declined to comment.

Qualcomm (QCOM) generated free cash flow equal to 5.5% of its market value over the last year, outpacing the S&P 500 median. However, its revenue fell in the last two quarters. The company's free cash flow has declined for two consecutive years, with $10.4 billion in the year ending June 2026. Qualcomm's debt is $15.3 billion, with $8.3 billion in cash and short-term investments. Management attributed revenue declines to industry-wide memory prices and lower iPhone chip sales.

Intel, Qualcomm, and AMD are competing in the handheld gaming chip market. Intel launched its Arc G3 Extreme in a $1,799 device, Qualcomm introduced the Snapdragon G2 Gen 2 in a $307 handheld, and AMD released the Ryzen AI Max+ 388 in a $1,722 device. Asus also launched the Ryzen Z2 Extreme-powered ROG Xbox Ally X20 at $1,299.99. The market now spans from $140 to over $3,000, with each company targeting different segments.

Qualcomm's EVP and General Counsel Ann Chaplin sold 1,827 shares on 2026-10-16, part of a year-long insider selling trend with 33 sells and 0 buys. The stock trades at a P/E of 19.92, below industry and historical medians, with a GF Value of $175.47, indicating fair valuation. 21 gurus hold the stock, with 5 adding and 15 trimming positions.

Qualcomm and Transsion have extended their patent licensing agreement for 4G and 5G technologies until 2031, resolving past disputes over mobile tech intellectual property.

Qualcomm's next-gen chip, Snapdragon 8 Elite Extreme 6th Gen, faces heating issues, potentially delaying its use in Samsung's Galaxy S27 Ultra. Samsung may switch to its in-house Exynos 2700 chip, developed using a 2-nanometer process, which could impact Qualcomm's revenue and Samsung's semiconductor strategy. Industry experts suggest Qualcomm may struggle to resolve the heating issue quickly.

Arete Research lowered its price target for QUALCOMM from $314 to $305. The stock was trading at $178.40, up 3.35% in pre-market. QUALCOMM recently won $2 in damages in a licensing lawsuit against Arm Tech.

Intel (INTC) and Qualcomm (QCOM) reported earnings, highlighting AI-related growth. Intel's revenue rose 25.4% to $16.13B, driven by data center and AI. Qualcomm's revenue fell 4.0% to $9.95B, with handsets declining. Intel's stock is down 8.61% this week, while Qualcomm is up 5.03% YTD. Intel's AI revenue is already shipping, while Qualcomm's data center plan starts in December.

Qualcomm (QCOM) reported fiscal Q3 with handset revenue down 20% YoY to $5.09B and automotive revenue up 61% to $1.59B. Non-GAAP EPS was $2.21, slightly missing estimates. Management raised its fiscal 2029 non-handset revenue target to $40B. The stock trades at a forward P/E of 20, with a PEG ratio of 0.88 and a free cash flow yield of 6.79%. Analysts have a $194 average target, with most rating it a Hold.

Qualcomm (QCOM) closed at $174.43 on October 12, up 32.9% in six months. Its licensing business (QTL) earned $881M at 69% margin, while chip business (QCT) earned $2.19B at 26%. Chip revenue slipped, raising concerns about customer concentration. The stock trades at 19.65x next year's earnings, with 95 hedge funds holding $4.04B in Q2 2026.