Qualcomm’s Monster Rally Has a Catch—Can the Stock Keep Climbing?

Key Points

• Qualcomm is on track to close out 2025 on strong footing, with its multi-month rally continuing to grind higher.
• But that also means its P/E ratio is now at the highest level in more than ten years. 
• Heading into 2026, investors are right to question whether this signals a bullish re-rating or a bearish warning.

Shares of Qualcomm Inc. NASDAQ: QCOM were trading just over $176 on the morning of Dec. 18, extending a run that has been easy to overlook in a market obsessed with mega-cap tech and artificial intelligence leaders. The stock is up about 12% year-to-date and more than 40% since April, marking one of Qualcomm’s strongest years in recent memory after a long stretch of underperformance versus peers.

What has investors paying closer attention to now as we head into the final few sessions of the year is not just the price action, but the valuation that has come with it. Qualcomm’s price-to-earnings (P/E) ratio has climbed to levels not seen in more than a decade. Sometimes that kind of move is a warning sign that expectations are getting ahead of reality. 

Other times, it reflects a meaningful shift in how the market views a company’s future. For those of us on the sidelines and thinking about building a position in Qualcomm into 2026, that distinction matters. Let’s jump in and see what it could be, either a good sign or a red flag.  

Why a Rising Valuation Can Be a Bullish Sign

For much of the past decade, Qualcomm traded at a persistent discount relative to peers. As we flagged earlier this year, its P/E ratio of just 15 looked very attractive when compared to the likes of NVIDIA Corp NASDAQ: NVDA, which had a P/E ratio closer to 50. Qualcomm’s historical reliance on the smartphone cycle, periodic royalty disputes, and sluggish share price sanctions always seemed to keep a lid on its multiple, even during the broad semiconductor rally—his context matters when interpreting today’s higher valuation.

The recent jump suggests the market is starting to look at, and therefore to price, Qualcomm differently. Rather than viewing it purely as a handset-driven name, investors seem to be increasingly recognizing the benefits of a more diversified revenue mix. Automotive, IoT, and edge computing exposure have helped transform the market’s perception of the brand and build excitement about fresh long-term growth potential.

This has been reflected in the stock’s sustained rally since April—while it mightn’t be winning awards for speed or scale anytime soon, it’s actually been one of Qualcomm’s most sustained moves in a long time. When viewed through this lens, a decade-high valuation can be interpreted less as a potential ceiling and more as confirmation that the market is reassessing what Qualcomm deserves to trade at.

Why a Decade-High Multiple Still Deserves Scrutiny

That said, a valuation that has more than doubled in just a few months has to come with a bit of risk, too. The higher stock price and underlying P/E ratio have raised the bar for execution, meaning Qualcomm can’t afford any slips heading into 2026’s earnings reports. The fact that it’s no longer priced as a deep-value laggard means any earnings stumble would likely be met with a good deal of investor panic.

Recent analyst commentary reflects this. Just this week, the team at Cantor Fitzgerald reiterated its Neutral rating on the stock, urging caution around chasing it after the recent run. At the same time, the fact that Qualcomm is still trading well below its $185 price target suggests even more conservative analysts still see some upside from current levels.

Countering this view are the more bullish updates in recent weeks that remain firmly intact. Both Cowen and Susquehanna have reiterated Buy or equivalent ratings in the past month, with Susquehanna’s $210 price target implying potential upside of 20% from current levels.

Diverging Views Signal a Pivotal Year for Qualcomm in 2026

The split in analyst opinion is interesting and telling. Qualcomm’s bears are not exactly calling for a ton of downside so much as arguing that the stock is fairly valued, if not a bit undervalued, right now.

The bulls will counter that the ongoing multiple expansion is more than justified, and it’s high time Qualcomm’s shares start to log these multi-month rallies that have been the norm with their peers. 

Either way, 2026 is shaping up to be a pivotal year for Qualcomm, and one that investors will want to stay closely tuned into.