Few stocks have tested the patience of investors like Qualcomm Inc. NASDAQ: QCOM this summer. After hitting an all-time high at the end of May, the chip giant recovered more than 30% of its value late last Friday, unleashing much of a rally that looked like the start of something very long-lasting.
Qualcomm Today
As of 07/20/2026 04:00 PM Eastern
- 52 week interval
- $121.99
▼
$259.92
- Dividend Yield
- 2.16%
- The P/E ratio
- 18.51
- Target Value
- $219.76
What makes the slide frustrating for the bulls is that it came despite many recent updates. Qualcomm used June's Investor Day to double its 2029 non-core revenue guidance and lay out a reliable data center strategy with blue-chip customers already signed up. That would have been the most significant update in the company's recent history, and yet the stock has bounced back since then.
With Qualcomm's next earnings report due on July 29, the cut raises the question: is the market justified in sending shares back to 2021 levels, or is it overreacting and creating a golden entry opportunity?
Why Selling Doesn't Make Sense
The core of the bullish argument is straightforward. Qualcomm is still widely regarded as a legacy handset chipmaker, even though the company has spent the past year building something very different underneath.
Last month's Investor Day made that clear, with a double-digit revenue goal backed by a data center business targeting billions in revenue by the end of the decade, and reasonable growth ambitions in its automotive and Internet of Things (IoT) units.
Add in the series of acquisitions Qualcomm has made to strengthen its go-to-market offerings, and this is starting to look like a company that has been quietly putting the pieces together for real change.
However, the market is not buying it. But the gap between what Qualcomm says it will be and how investors are calling it today is exactly where the best opportunity may lie.
The Bear's Case Deserves a Hearing
The skeptics have a valid point, and it's the biggest of all time. Even the most ardent proponents of data center strategy agree that meaningful revenue is a matter of many years rather than something that will emerge in the near future. Investors who buy today on the power of the pivot are being asked to wait, and the markets are rarely patient.
There is also the matter of what is happening to the core business at the moment. Qualcomm still carries the real risk of customer pain, a prospect that has been flagged for a long time Apple Inc. NASDAQ: AAPL to move its modem function indoors hangs over the handset part. Margin pressure on an existing business is another concern, and it's a legitimate concern that the cost of building a new one could weigh on profits before profits arrive.
Those risks are why some analysts remain bullish on the call. GF Securities recently initiated a Hold, acknowledging the size of the data center opportunity while arguing that more visibility is needed on how competitive Qualcomm's offering will be.
The Analyst Split Tells Its Story
Qualcomm Stock Forecast Today
$219.76
29.03% changedHold on
Based on 38 Analyst Ratings
| Current Price | $170.32 |
|---|---|
| High Forecast | $300.00 |
| Average prediction | $219.76 |
| Low Prognosis | $120.00 |
Qualcomm Stock Forecast Details
That warning, however, is accompanied by a more noteworthy view from TD Cowen, which reiterated its buy rating on Qualcomm this past week and raised its price target to $225, a roughly 30% upside from current levels.
The division between those two positions holds the entire debate.
Bears are focused on the next few quarters, where handset strength and uncertainty about the long-term pivot dominate.
Bulls are focused on the next few years, when the data center business delivers what it intended or not. Both can be right at the same time, which helps explain why the stock has been so volatile.
Required Report for July 29th
All of this brings into focus the company's upcoming earnings report. The headline numbers will matter, but the comments around them will be more important, and there are a few specific things to listen to.
The most important update is on the data center roadmap, specifically the customer sequence and how management is framing the timeline for revenue to start rolling in. Tangible progress will go a long way toward closing the credibility gap that has opened up since Investor Day. Apart from that, look for evidence that Qualcomm's diversification story is removing the handset focus, and any comments on how the margin profile is expected to evolve as the mix changes.
Get that right, and a stock that's down 35% while its long-term story is improving can start to look undervalued. Fail, and the market's skepticism about the ongoing pivot will only intensify.
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