Investors in semiconductor stocks found a boost in early 2026 due to strong AI and data center spending. Despite interest-rate volatility and supply-chain issues, undervalued names are gaining attention. Qualcomm is one such stock, facing pressure from Apple’s move to in-house modem chips but maintaining strong core businesses.

Qualcomm, a wireless tech and semiconductor giant, dominates in handset processors and generates income from licensing wireless technology. Recent expansions include partnerships and new product launches, such as an AI solution center in Riyadh with Saudi firm Humain and the acquisition of UK-based Alphawave.

With a market cap of around $180 billion, Qualcomm’s stock has modestly risen about 6% over the past year. Trading at a discount to peers, Qualcomm’s valuation looks cheap, with potential for rerating if sales and margins improve. Analysts suggest looking past Apple-related concerns to focus on Qualcomm’s growth outlook.

Following a strong close to fiscal Q4, Qualcomm is optimistic heading into 2026. Revenue and EPS beat expectations, with robust margins and cash flow. The shift to higher-end, 5G-enabled phones is boosting Qualcomm’s performance, with guidance indicating potential revenue and EPS growth for the year.

Despite concerns about Apple’s move away from Qualcomm parts, the company remains strong in Android handsets, automotive, IoT, and data center sectors. Analysts have mixed opinions on Qualcomm’s outlook, with price targets ranging from $165 to over $210. The consensus remains a “Moderate Buy,” with room for stock growth.

Read more at Yahoo Finance: Ignore the Apple Noise and Consider Buying Qualcomm Stock for 2026