Qualcomm Surpasses Earnings Estimates and Announces AI Chip Expansion
Qualcomm delivered a robust fourth-quarter performance, with earnings of $3.00 per share and revenue of $11.27 billion, outpacing analyst forecasts of $2.88 and $10.79 billion. The chipmaker's guidance for the first quarter projects revenue between $11.8 billion and $12.6 billion, exceeding consensus estimates of $11.62 billion.
The company revealed ambitious plans to enter the AI data center market with new accelerator chips—AI200 in 2026 and AI250 in 2027—positioning itself against industry heavyweights Nvidia and AMD. BofA Securities responded by raising its price target from $200 to $215, citing strong handset demand in China and solid non-handset growth.
Despite a 17% year-to-date gain, Qualcomm's stock lags behind the Nasdaq's 22% rise and trails far behind Nvidia's 45% and AMD's 112% surges. The MOVE into AI accelerators signals Qualcomm's strategic pivot to capture a share of the booming data center market.
