Qualcomm Is on Its Biggest Uptrend in 2 Years—Can It Continue?

Core Viewpoint - Qualcomm is experiencing a significant stock rally, marking its highest levels in nearly two years, while diversifying its business beyond smartphones to include AI and automotive technology [1][2][7]. Group 1: Stock Performance - Qualcomm shares closed just under $170, their highest level since last February, indicating a strong rally [2]. - The stock has shown a bullish momentum with a price-to-earnings ratio of 16 and a positive MACD, making its profile more appealing [2][4]. - The decisive move above $160 represents a breakout from months of range-bound trading, with prior resistance now likely acting as support [5]. Group 2: Business Diversification - Qualcomm is shifting its narrative beyond smartphones, focusing on diversification as a key theme [7]. - The company is positioning itself as a major player in on-device AI, with its latest Snapdragon platforms designed to integrate AI capabilities into mobile devices and PCs [8]. - Qualcomm's collaboration with BMW on advanced driver-assistance systems highlights its expansion into the automotive sector, which management believes could evolve into a multi-billion-dollar business [9][10]. Group 3: Market Outlook - Analysts have a 12-month stock price forecast for Qualcomm at $182.82, indicating a potential upside of 10.60% [11]. - Despite the bullish momentum, there are risks related to the licensing division and customer concentration, particularly with Apple reducing reliance on Qualcomm's modems [12].