Qualcomm: What Monday’s Jump Tells Us About the Stock's Prospects

Key Points

• Shares surged 4% on Monday in what was one of their best sessions in months. 
• The catalyst was the $2.4B acquisition of Alphawave, which the market is seeing as a major push into data centers and AI infrastructure.
• Analysts have yet to react, but a sustained move above $155 could trigger a wave of upgrades and even more momentum.

After months of false starts and frustrating sideways action, Qualcomm Inc. NASDAQ: QCOM gave investors something to get excited about on Monday. Shares of the tech giant jumped 4% in one of their best single-day performances in recent weeks, dramatically outperforming the broader S&P 500, which gained less than 1% on the day.

The move pushed Qualcomm stock to its highest close since March and marked a rare show of strength from a name that’s long felt stuck in neutral. Recently, Qualcomm has had plenty going for it fundamentally, but has struggled to convert that potential into a sustained uptrend.

Monday’s breakout might finally be the first real sign of change, and the catalyst behind it could prove to be the spark investors have been waiting for.

A $2.4 Billion Push Into Data Centers

The rally came on the back of Qualcomm’s $2.4 billion deal to acquire UK-based Alphawave IP Group PLC LON: AWE, a provider of high-speed connectivity and tech for AI data centers. It’s a bold bet and a clear signal that Qualcomm is accelerating its pivot away from smartphones and deeper into infrastructure, AI, and server-side growth.

In its statement, Qualcomm said the Alphawave acquisition would “accelerate and provide key assets” to expand into data centers. The company has been targeting this market increasingly over the past year, especially as many smartphone makers continue shifting toward in-house chips. Diversification seems to be the name of the game, and Alphawave will have a solid foothold in one of the most profitable verticals in tech today.

The deal is expected to close in the first quarter of next year, and analysts don’t expect much regulatory resistance to the acquisition, particularly as Alphawave has exited its China-based joint venture, WiseWave.

Qualcomm’s CEO, Cristiano Amon, described Alphawave’s tech as “complementary” to Qualcomm’s existing CPU and neural processing units, reinforcing the company’s broader ambition to become a serious AI infrastructure player.

Qualcomm’s $155 Breakout Could Lead to $175 and Beyond

Qualcomm has long needed a fresh story to reignite investor interest. While earnings and fundamentals have been solid, the lack of a new narrative has left the stock struggling to keep pace with peers like NVIDIA Corp NASDAQ: NVDA and Broadcom Inc NASDAQ: AVGO. Monday’s move showed just how hungry the market is for a catalyst and just how quickly sentiment can shift when one appears.

This is also a technical breakout worth noting. Monday’s close puts the stock above the $155 level, which has acted as a key resistance zone in recent months. A clean move-through that could open the door toward $175, a price range the stock has failed to hold above since last summer.

So far, analysts have been slow to weigh in on the deal, but that could change quickly if the stock continues higher. Fresh bullish ratings or price target hikes could add more fuel to the rally, particularly if major firms start repositioning Qualcomm as a legitimate data center player rather than just a smartphone chip provider.

Qualcomm Surges on AI Catalyst, Is This the Turnaround?

Momentum matters, and for Qualcomm, that’s been in short supply. But Monday’s session might just be the start of the script being flipped. Not only did the stock decisively outperform its peers, but it did so on a fundamental catalyst tied to a high-growth vertical that Wall Street loves right now: AI infrastructure.

It also comes at a time when broader market sentiment is improving. Risk appetite is back on, tech stocks are leading, and growth names are once again starting to find favor. NVIDIA, for example, just hit its highest level since January, suggesting the environment is right for catch-up plays, which is exactly the kind of setup Qualcomm bulls have been waiting for.