Qualcomm Just Hit A 52 Week High—Time to Buckle Up

Key Points

• Qualcomm posted its biggest single-day gain in years after entering the AI accelerator race.
• The stock has been up 70% since April, with nearly half of those gains coming in the past three weeks.
• Analysts are split on what comes next, with targets ranging from $165 to $200 ahead of next week’s earnings.

Qualcomm Inc. NASDAQ: QCOM stock has just had the kind of day many investors can only dream of. Having rarely gained more than 2% or 3%, shares jumped 11% on Monday, Oct. 28, to close around $187 in recent months, even on its better days. They had been up more than 20% at one point, marking their biggest single-day gain in years. The move came on the back of news that Qualcomm is entering the AI accelerator market, positioning itself to compete directly with NVIDIA Corp NASDAQ: NVDA and Advanced Micro Devices Inc NASDAQ: AMD.

Qualcomm has lived in those giants’ shadow for years, despite consistently outperforming earnings expectations and trading at a comparatively cheap valuation. This latest development should finally change that dynamic. However, with gains of 70% already under its belt since this rally began in April, how should investors play it? Let’s take a closer look at the options. 

Why This Qualcomm Rally Could Be Different This Time

It must be acknowledged that Monday’s pop was more than just another headline-driven spike. Qualcomm’s entrance into the AI accelerator market represents a fundamental evolution of its business model. Until now, the company’s identity has been anchored in mobile chips and wireless technologies. That segment remains strong, but investors have long wanted proof that Qualcomm could diversify beyond smartphones.

The new strategy does precisely that. Qualcomm is positioning itself as a serious contender in the next wave of AI infrastructure by targeting the same high-performance computing market that has powered NVIDIA's meteoric rise. The timing could hardly be better. Investors have been searching for credible alternatives to the few dominant names driving the AI wave, and Qualcomm’s announcement has arrived not a moment too late.

What makes this rally different from previous false starts is its foundation. The stock’s uptrend since April has been orderly and consistent, with the bulls repeatedly stepping in to buy up any dips. Monday’s surge amplified that strength, setting Qualcomm up for its first sustained breakout in a long time.

But the market has a short memory. Qualcomm has sparked excitement before, only to fade when execution fell short. This time, the pressure is on to prove this isn’t another short-lived surge.

Bullish Analysts See Upside, Highlight Qualcomm’s Strengths

Wall Street’s reaction reflects that tension. On the bullish side, both Susquehanna and Weiss Ratings reaffirmed their Buy ratings last week, even before the latest update, pointing to the company’s solid fundamentals, diversified revenue base, and expanding AI exposure. Their price targets, ranging up to $200, imply additional upside from current levels and suggest confidence in Qualcomm’s execution.

But not everyone is entirely convinced. Also on Monday, the team at UBS Group reaffirmed their Neutral rating on the stock, along with a $165 target. The Bernstein team was also somewhat cautious, suggesting Qualcomm didn’t provide enough information to accurately forecast the impact of the new line of AI chips. 

The proximity of next week’s earnings report adds to the uncertainty. Qualcomm has built a reliable record of exceeding expectations, but the bar has been raised after such a dramatic move. Any weakness in established business units or less-than-confident remarks about its new chips could spook investors. 

2 Investment Paths for Qualcomm: Aggressive or Cautious?

For those of us on the sidelines, there are two clear ways to think about the opportunity from here. The first is the aggressive play: buy into the long-term vision and back the company to deliver another strong earnings update next week. Qualcomm’s valuation still looks modest relative to peers, and if it once again beats expectations and provides bullish forward guidance, a push through $200 could come fast.

The second is the cautious approach and waiting for confirmation from the earnings report. In the context of Qualcomm's track record, the stock’s 70% rally since April has been extraordinary. For all the enthusiasm around AI, Qualcomm has a long history of struggling to sustain momentum once excitement fades. Waiting to see how management frames its AI strategy, and whether the numbers back the optimism, may save latecomers from buying at the top.