Core Insights - Qualcomm has transitioned into a diversified AI semiconductor player, moving beyond its traditional role as a handset company [1] - The company has a market capitalization of approximately $163.5 billion and provides semiconductors and software across various sectors, including mobile devices, automotive systems, IoT, consumer electronics, and edge networking [2] Stock Performance - Qualcomm's stock has faced challenges, declining 11% over the past 52 weeks, significantly underperforming the S&P 500 Index, which gained 15% during the same period [3] - Year-to-date in 2026, QCOM stock has fallen 10.7%, while the S&P 500 has increased by 1.9% [3] - Within the technology sector, Qualcomm's underperformance is notable, trailing the State Street Technology Select Sector SPDR ETF, which surged 27.7% over the past year and added another 3.7% this year [4] Financial Performance - On November 5, 2025, Qualcomm's shares rose approximately 4% following the release of Q4 2025 earnings, with revenue increasing 10% year-over-year to $11.27 billion, surpassing analyst estimates [5] - Non-GAAP EPS climbed 11.5% to $3, exceeding the Street's expectation of $2.88 [5] Growth Opportunities - Management has identified AI as Qualcomm's most compelling growth opportunity, planning to launch AI accelerator chips, including the AI200 and AI250, in 2026 [6] - The company expects Q1 fiscal 2026 revenue to be between $11.8 billion and $12.6 billion, with non-GAAP EPS projected at $3.30 to $3.50 [6] Future Projections - Analysts forecast a 2.9% decline in EPS for fiscal year 2026, ending in September, with consensus estimates at $9.78 on a diluted basis [7] - Despite this forecast, Qualcomm has consistently exceeded consensus expectations in each of the past four quarters [7]

Core Insights - Qualcomm reported fiscal fourth-quarter results that exceeded analyst expectations, with revenue increasing by 10% to $11.27 billion compared to $10.24 billion a year earlier, although the company recorded a net loss of $3.12 billion due to an income tax expense [1][5] - For the fiscal first quarter, Qualcomm anticipates revenue between $11.8 billion and $12.6 billion, surpassing the average analyst estimate of $11.62 billion, with adjusted EPS projected between $3.30 and $3.50 [2] Financial Performance - The company achieved adjusted earnings per share of $3.00, which was higher than the expected $2.88, and revenue of $11.27 billion, exceeding the forecast of $10.79 billion [5] - The net loss for the fourth quarter was $3.12 billion, or $2.89 per share, compared to a net income of $2.92 billion, or $2.59 per share, in the previous year [1] Market Position and Strategy - Qualcomm is facing the potential loss of Apple as a customer for its modem business and is diversifying its product offerings to include chips for Windows PCs, virtual-reality headsets, and smart glasses [3] - The company is focusing on opportunities in artificial intelligence, where it aims to compete against Nvidia and AMD, which currently dominate the processor market [3] Product Development - Qualcomm announced plans to release new AI accelerator chips, the AI200 and AI250, which are expected to be available in 2026 and 2027, respectively, and can be integrated into liquid-cooled server racks [4] - The new AI chips are designed to compete with Nvidia and AMD's offerings, which allow multiple GPUs to function as a single computer, catering to the needs of AI labs [4] Stock Performance - Qualcomm's shares have increased by 17% year-to-date, lagging behind the Nasdaq's 22% gain, while Nvidia and AMD have seen significant increases of 45% and 112%, respectively [5]