QUALCOMM Incorporated engages in the development and commercialization of foundational technologies for the wireless industry worldwide. It operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI). The QCT segment develops and supplies integrated circuits and system software based on 3G/4G/5G and other technologies for use in wireless voice and data communications, networking, computing, multimedia, and position location products. The QTL segment grants licenses or provides rights to use portions of its intellectual property portfolio, which include various patent rights useful in the manufacture and sale of wireless products comprising products implementing CDMA2000, WCDMA, LTE and/or OFDMA-based 5G standards and their derivatives. The QSI segment invests in early-stage companies in various industries, including 5G, artificial intelligence, automotive, consumer, enterprise, cloud, IoT, and extended reality, and investments, including non-marketable equity securities and, to a lesser extent, marketable equity securities, and convertible debt instruments. It also provides development, and other services and related products to the United States government agencies and their contractors. The company was incorporated in 1985 and is headquartered in San Diego, California.

Qualcomm has strong profitability, but its valuation no longer looks cheap against the backdrop of a slowdown in several underlying metrics. A P/E of 16.85 is noticeably below the industry median, which supports the idea that it is undervalued on earnings, but a P/S of 4.09 and especially a P/B of 8.96 look elevated and limit the potential for re-rating. P/FCF of 17.35 is below the industry median, which is positive, but it does not offset the pressure from an expensive balance sheet in terms of book value and revenue. Margins remain very strong: net margin of 21.01%, operating margin of 23.19%, ROE of 37.33%, ROA of 18.45%, and ROI of 23.68% are all significantly above the industry, while ROTE of 94.27% confirms highly efficient capital use. At the same time, the trend is not perfect: operating margin and EBITDA have declined versus earlier periods, and revenue and gross profit have also fallen from the peak levels of recent years. TTM net income of 2.00 billion and operating income of 1.63 billion appear stable, but the historical data shows that profitability is no longer growing linearly. Liquidity is acceptable, though not flawless: a current ratio of 2.02 remains comfortable, while a quick ratio of 1.28 is already below its own historical trend and the industry median. Debt load is moderate: debt/equity of 0.46 is not critical, and long-term debt decreased over the year, which eases the risk. Dividend yield of 0.55% is low and is not the main driver of the investment case. Overall, the fundamentals point to a high-quality business with strong returns on capital, but with signs of growth cooling and a valuation that already reflects part of these strengths. Therefore, the target forecast should be slightly lowered, while maintaining a positive view of the company’s quality but taking into account more modest short-term upside.

QUALCOMM Incorporated

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, незначительно вырос. Рынок на стороне быков.

Strong index, slightly up. The market is on the bulls' side.

Сильный индекс, без изменений. Рынок не поддерживает медведей.

Strong index, flat. The market does not support the bears.

Сильный индекс, незначительно упал. Приток средств в лонги на высоком уровне.

Strong index, slightly down. Inflow of funds into longs at a high level.

Qualcomm remains highly profitable, but revenue and profit growth have slowed, and its expensive P/B and P/S ratios limit revaluation potential.

The multibillion-dollar arrangement could open the door for further expansion into the data center market for Qualcomm (NASDAQ: QCOM).
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
*Stock prices used were the afternoon prices of Sept. 9, 2026. The video was published on Sept. 11, 2026.
Should you buy stock in Qualcomm right now?
Before you buy stock in Qualcomm, consider this:
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Amazon Delivers Fantastic News for Qualcomm Stock Investors

The S&P 500 Index ($SPX) (SPY) is up +0.87%, the Dow Jones Industrial Average ($DOWI) (DIA) is up +0.97%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.77%. E-mini S&P futures (ESU26) are up +1.01%, and September E-mini Nasdaq futures (NQU26) are up +0.89%.
Stock indexes are trading higher today, supported by today’s decline of more than -3% in oil prices. The stock and bond markets took today’s CPI report largely in stride. The Aug core CPI of +0.3% m/m was slightly stronger than market expectations of +0.2%, but the nominal CPI of +0.4% m/m was in line with market expectations. T-note prices are trading mildly higher, even though the markets raised the odds of a FOMC rate hike next week to 88% from 75% on Thursday.
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Today’s Aug US CPI report of +0.4% m/m was in line with market expectations, but the core CPI report of +0.3% m/m was slightly stronger than market expectations of +0.2% m/m. On a year-on-year basis, the Aug CPI report of +3.4% y/y was unchanged from July and was in line with market expectations. Meanwhile, the Aug core CPI report of +2.4% y/y eased slightly from July’s +2.5% and posted a new 5.5-year low, and was in line with market expectations.
Today’s CPI report caused the markets to raise the odds for a +25 bp FOMC rate hike at next week’s meeting on September 15-16 to 88% from 75% on Thursday.
The US-Canada trade war continues to weigh on stock market sentiment. On Tuesday, Canada imposed tariffs of 15% to 50% on hundreds of US goods in retaliation for the US action last month to impose 50% tariffs on $20 billion of imports from Canada. The US responded by blocking imports of some Canadian products and slapping new tariffs on others, as well as seeking to bar Canadian companies from selling to US government contractors.
Oct WTI crude oil prices (CLV26) are down more than -3% today, giving back part of Thursday’s +6.7% surge to a 3.5-month high. Oil prices are still sharply higher on the week, but fell back today after the International Energy Agency today warned that high oil prices and restricted oil supply will cause the biggest drop in global oil demand this year since the Covid-19 pandemic.
There were reports that two ships were struck by unidentified projectiles near Oman on Thursday, presumably by Iran. Also, Axios reported that Saudi Crown Prince Mohammed bin Salman called President Trump twice on Thursday, asking him to launch a new military attack against the Houthis in Yemen, who are gaining control of more territory in Yemen near the critical Bab el-Mandeb Strait and have been striking Saudi oil facilities. Saudi Arabia told OPEC on Thursday that its crude production in August fell to 6.238 million bpd, the lowest since 1990.
Overseas stock markets are mixed. The Euro Stoxx 50 is up +0.81%. China's Shanghai Composite closed down -1.18%. Japan's Nikkei-225 Stock Average closed down -1.91%.
Interest Rates
December 10-year T-notes (ZNZ6) are up +4 ticks. The 10-year T-note yield is down -4.1 bp to 4.922%, following Thursday’s +11 bp surge to a 2.75-year high of 4.963%. T-note prices shook off the CPI report and the higher odds of an FOMC rate hike next week and are trading higher on today’s decline in oil prices. The 10-year break-even inflation expectations rate is down -2.6 bp to 2.390%, falling back from Thursday’s 3.25-month high of 2.42%.
European government bond yields are steady to lower. The 10-year German bund yield today posted a new 24-year high of 3.532% but then backed off and is little changed at 3.502%. The 10-year UK gilt yield edged to a 19-year high of 5.380% but then backed off and is down -4.4 bp at 5.329%.
Markets are discounting a 78% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29. The ECB at this week’s meeting raised its deposit facility rate by 25 bp to 2.50%, as expected, and said inflation will stay above 2% for an "extended period."
US Stock Movers
Oracle (ORCL) is up more than +2% after reporting late Thursday that its cloud infrastructure sales rose +121% to $7.4 billion, above the market consensus of $7.2 billion. Oracle’s co-CEO Clay Magouyrk said, “We are delivering data center and GPU capacity at a pace that would have seemed impossible only a year ago.” The company also said it sold more than $30 billion in AI cloud contracts during the latest quarter, higher than expectations. Fiscal-Q1 sales rose +30% and the adjusted EPS report of $1.92 per share was higher than market expectations of $1.75.
The positive Oracle news boosted other cloud infrastructure stocks, with Applied Digital (APLD) up +2%, and Coreweave (CRWV) up +1%.
Chipmakers are higher across the board on the positive Oracle news, with Qualcomm (QCOM) and Intel (INTC) up more than +3%.
The Magnificent Seven are all trading higher today, led by gains of more than +1% in Apple (AAPL), Amazon (AMZN), Alphabet (GOOGL), and Meta (META). Apple is seeing continued support after releasing its new iPhone Duo earlier this week, its first foldable phone.
Adobe (ADBE) is down 0.4% after providing slightly disappointing guidance, which fueled concerns that AI will cannibalize software revenue.
Dell Technologies (DELL) is up more than +8% after RBC Capital Markets started research coverage with an outperform rating and $640 price target based on expectations for strong AI infrastructure demand.
Earnings Reports (9/11/2026)
Kroger Co (KR) and Rent the Runway Inc (RENT).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

Stocks Shake Off CPI Report and Rally on Lower Oil Prices

Key Points
Advanced Micro Devices is rapidly expanding its data center presence through strategic AI partnerships and infrastructure acquisitions.
Qualcomm is diversifying its revenue streams by shifting focus from mobile handsets to automotive and AI-native data centers.
Which semiconductor stock deserves a spot in your portfolio?
As the artificial intelligence boom shifts from cloud servers to edge devices, investors must decide which chip titan offers better value: Advanced Micro Devices (NASDAQ:AMD) or Qualcomm (NASDAQ:QCOM)?
Advanced Micro Devices has transformed itself from a secondary CPU maker into a powerhouse in data center GPUs and high-performance computing. Meanwhile, Qualcomm is leveraging its dominance in smartphone connectivity to expand into automotive systems and on-device AI. Both companies are vying for leadership in a rapidly evolving hardware landscape.
The case for Advanced Micro Devices
Advanced Micro Devices develops high-performance computing products for cloud infrastructure and gaming consoles. In its latest annual report, filed for the fiscal year ended December 27, 2025, the company highlighted a partnership with OpenAI and supply agreements with Microsoft (NASDAQ:MSFT). This customer concentration adds risk even as the firm expands among semiconductor stocks while integrating its new ZT Systems acquisition.
In FY 2025, revenue reached nearly $34.6 billion, representing a significant growth of roughly 34.3% compared to the previous year. The company reported net income of approximately $4.3 billion and a net margin of roughly 12.5%. This trend suggests strong demand for its AI-focused hardware and server processors, which have become the primary engines of its financial performance as it gains market share.
As of its December 2025 balance sheet, the current ratio stands at roughly 2.9x, which is a metric that compares current assets to current liabilities to assess short-term liquidity. The debt-to-equity ratio, a measure of financial leverage, is approximately 0.1x. Free cash flow reached nearly $6.7 billion, though note that stock-based compensation represented roughly 21.2% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.
The case for Qualcomm
Qualcomm specializes in foundational wireless technologies and integrated circuits, primarily serving the mobile, automotive, and Internet of Things markets. Its latest annual report, filed for the period ending September 28, 2025, details a strategic shift toward software-defined vehicles and AI-native data centers. Major customers include Apple (NASDAQ:AAPL) and Samsung, and the company recently expanded its reach by acquiring Modular Inc. to diversify its portfolio.
In FY 2025, Qualcomm's revenue reached $44.3 billion, a roughly 13.7% increase over the $39.0 billion reported in FY 2024. Net income for the period, however, fell sharply to $5.5 billion, down about 45% from the $10.1 billion reported in FY 2024, resulting in a net margin of nearly 12.5%, despite the strong top-line growth. The drop in net income wasn't due to weak operations or R&D costs; it was mainly a one-time, non-cash $5.7 billion charge tied to the U.S. government's One Big Beautiful Bill Act. Excluding that charge, Qualcomm's underlying profits actually grew nicely.
As of its September 2025 balance sheet, the current ratio stands at roughly 2.8x, indicating the company has sufficient short-term assets to cover its obligations. The debt-to-equity ratio is approximately 0.7x, showing a higher level of leverage compared to some peers in the industry. Free cash flow for the fiscal year was nearly $12.8 billion, which is the cash left over after a company pays for its capital expenditures from its operating cash flow.
Risk profile comparison
Advanced Micro Devices faces intense competition from Intel (NASDAQ:INTC) and Nvidia (NASDAQ:NVDA), both of which leverage large software ecosystems to maintain market share. Geopolitical tensions also pose a threat, as evidenced by an $800 million inventory charge in early 2025 due to U.S. export controls on sales to China. Additionally, the company relies heavily on third-party foundries like TSMC, making it vulnerable to any manufacturing disruptions or capacity shortages.
Qualcomm deals with significant revenue concentration among a few mobile handset manufacturers, many of whom are increasingly developing their own internal chips. The company also remains highly exposed to regulatory and trade policy risks involving China, which serves as a critical manufacturing hub. Furthermore, ongoing legal challenges to its patent licensing model could fundamentally alter its high-margin revenue streams if future court rulings are unfavorable.
Valuation comparison
Qualcomm currently trades at a much lower Forward P/E and P/S ratio than AMD, suggesting a more conservative valuation of its future earnings estimates.
Metric
Advanced Micro Devices
Qualcomm
Forward P/E
58.3x
15.6x
P/S ratio
20.9x
3.9x
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
I'd go with AMD, although Qualcomm's ongoing transformation beyond smartphones is worth acknowledging. Its automotive segment just posted a record quarter, growing at an extraordinary rate year over year. A new partnership with BMW cements its position as a key player in next-generation vehicles, and an emerging data center business adds another growth engine that could matter a great deal in the years ahead.
But Qualcomm is also navigating a difficult stretch in its core smartphone business. Android handset demand is soft, and memory cost increases are squeezing margins. A sharp drop in Apple revenue is expected in the coming quarter. Those headwinds are manageable but create near-term uncertainty that concerns me.
The path forward at AMD is considerably cleaner. Data center sales more than doubled year over year. A partnership with Anthropic backs up management's confidence in continued growth, and the company keeps posting results that surprise analysts to the upside. For a long-term investor, AMD's remarkable momentum in the most important part of the semiconductor market makes it the stronger pick right now.
Should you buy stock in Advanced Micro Devices right now?
Before you buy stock in Advanced Micro Devices, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Advanced Micro Devices wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $409,917!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,341,724!*
Now, it’s worth noting Stock Advisor’s total average return is 942% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 11, 2026.
Sara Appino has positions in Apple, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Intel, Microsoft, Nvidia, Qualcomm, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.

Advanced Micro Devices vs. Qualcomm: Which Technology Stock Is a Better Buy in 2026?

Key Points
Qualcomm began shipping its Centriq server processor in November 2017 and had all but dismantled the effort by the end of 2018.
Amazon's new agreement ties warrant vesting to binding purchase orders and up to $60 billion in purchases through 2036.
Management expects non-handset revenue growth to accelerate from 24% in fiscal 2026 to more than 60% in fiscal 2027.
Qualcomm (NASDAQ:QCOM) said on Tuesday that Amazon (NASDAQ:AMZN) could buy up to $60 billion of its server chips and related technology over the next decade. The two companies plan to co-develop multiple generations of customized silicon for Amazon Web Services' data centers, starting with chips built for AI (artificial intelligence) inference (the day-to-day work of running already-trained AI models). Shares of the chipmaker rose 3% on the announcement.
But Qualcomm has been here before. In November 2017, the company announced commercial shipment of its Centriq 2400, billed as the world's first 10-nanometer server processor.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Within six months, Bloomberg reported that the company was preparing to give up on the business. By the end of 2018, Qualcomm was cutting the data center group from a peak of more than 1,000 people to about 50.
What has to be different this time?
Image source: Getty Images.
Centriq never found a committed buyer
The 2017 failure wasn't a story of weak engineering or half-hearted effort. Qualcomm's data center chief at the time, Anand Chandrasekher, called the launch "the culmination of more than four years of intense design, development and ecosystem enablement effort."
The 48-core version of the chip listed at $1,995, and Qualcomm claimed more than 4 times the performance per dollar of Intel's highest-end server processor. Microsoft and other cloud providers demonstrated workloads on it at the launch event.
What no one did was commit to buying it in volume. Demonstrations never became the kind of orders a company can build a business on.
By May 2018, Bloomberg was reporting that Qualcomm was exploring a shutdown or a sale of the unit, part of a push to cut $1 billion in annual costs.
And Amazon, notably, chose to build rather than buy. It introduced its own Arm-based Graviton server processors in November 2018, just weeks before Qualcomm's retreat became official.
Amazon's commitment is in writing
The new agreement addresses that failure directly. As part of the deal, Qualcomm issued Amazon warrants to buy 25 million of its shares at $161.26 apiece. According to the company's filing, those shares vest in tranches tied to the execution of commercial agreements, the placement of binding purchase orders, and actual purchases of Qualcomm's server chips, systems, and services. The payments that count toward vesting are capped at $60 billion through 2036.
In other words, Amazon gets the full value of its warrants only if it buys. That structure, I'd argue, is the single biggest difference from 2017.
And some buying is already locked in. Of the 25 million warrant shares, 3.75 million vested immediately, based on what the filing calls initial purchase commitments.
To be fair, the $60 billion is a ceiling on what counts toward vesting, not a promised spend. But Centriq died without a committed dollar. This attempt starts with purchase commitments already made -- and a partner that profits by spending more.
This time, the roadmap is the strategy
The other thing Centriq lacked was a parent willing to fund it through the slow years. The 2018 exit was a cost cut as much as a verdict on the product. Today, the data center business sits at the center of Qualcomm's plans.
Meta Platforms agreed in June to use the company's data center processors across multiple generations, starting with the Dragonfly C1000, expected in 2028. Management targets more than $15 billion in data center revenue by fiscal 2029, and CEO Cristiano Amon expects non-handset revenue growth to accelerate from 24% in fiscal 2026 to more than 60% in fiscal 2027 -- a sharp acceleration, if it lands.
Qualcomm likely needs it to land. In the fiscal third quarter of 2026 (the period ended June 28, 2026), handset chip revenue fell 20% year over year to $5.1 billion, and total revenue slipped 4% to $9.9 billion. Automotive revenue rose 61% year over year, and internet of things revenue grew 9%. But the two combined remain smaller than the handset business they are meant to offset.
Ultimately, this attempt has the committed anchor customer the first one never found, and a roadmap the company is funding as its main growth bet. What the terms can't settle is execution. The $60 billion is a cap, not a guarantee, and the revenue ramp isn't expected before fiscal 2027.
Shares trade around $176 as of this writing, or about 17 times the earnings analysts expect for next fiscal year -- hardly a price with data center success already baked in. Still, I'd stay on the sidelines for now. I want to see those purchase orders show up as revenue first.
Should you buy stock in Qualcomm right now?
Before you buy stock in Qualcomm, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Qualcomm wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $410,024!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,372,815!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 11, 2026.
Daniel Sparks and his clients do not have positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Intel, Meta Platforms, Microsoft, and Qualcomm. The Motley Fool has a disclosure policy.

Qualcomm Sold Server Chips Once Before and Quit Within a Year. History Says What Has to Be Different This Time.

The S&P 500 Index ($SPX) (SPY) closed down -0.48% on Wednesday, the Dow Jones Industrial Average ($DOWI) (DIA) closed down -0.77%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -0.29%. E-mini S&P futures (ESU26) fell -0.46%, and September E-mini Nasdaq futures (NQU26) fell -0.30%.
Stock indexes retreated on Wednesday, with the Dow Jones Industrial Average falling to a 5-week low. The broader market was under pressure for a second day amid mounting inflation risks. WTI crude oil prices surged more than +3% today to a 3.25-month high amid escalating hostilities in the Middle East, heightening concerns about energy flows through the Strait of Hormuz. The surge in energy prices is boosting inflation expectations and pushing bond yields higher. The 10-year T-note yield rose to 4.85% on Wednesday, the highest in 2.75 years. The higher bond yields weighed on stocks.
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On the positive side, chipmakers and AI-infrastructure stocks gained on Wednesday. Energy producers also rose on stronger crude oil prices.
The escalating trade war between the US and Canada is also weighing on market sentiment. On Tuesday, Canada imposed tariffs of 15% to 50% on hundreds of US goods in retaliation for the US action last month to impose 50% tariffs on $20 billion of imports from Canada. The US responded by moving to block imports of some Canadian products and slapping new tariffs on others, as well as seeking to bar Canadian companies from selling to US government contractors.
US MBA mortgage applications fell -2.7% in the week ended September 4, with the purchase mortgage sub-index down -0.2% and the refinancing mortgage sub-index down -6.2%. The average 30-year fixed-rate mortgage rose +6 bp to a 14-month high of 6.85% from 6.79% in the prior week.
Oct WTI crude oil prices (CLV26) surged more than +3% on Wednesday to a 3.25-month high due to the latest escalation of hostilities in the Middle East. The US destroyed five Iranian tankers carrying crude in response to two attempts by Iran to hit US Navy ships with ballistic missiles. Iran responded by firing missiles at a US air base in Jordan and warning ships in the Persian Gulf that they would be attacked. Iran also said on Wednesday that it is ready for a more intense war and will escalate counterstrikes if the US continues attacking its territory and infrastructure.
The markets are discounting a 61% chance of a +25 bp rate hike at the next FOMC meeting on September 15-16.
Overseas stock markets settled mixed on Wednesday. The Euro Stoxx 50 fell to a 5-week low and closed down -1.58%. China's Shanghai Composite closed up +0.28%. Japan's Nikkei-225 Stock Average closed down -0.19%.
Interest Rates
December 10-year T-notes (ZNZ6) closed down by -7.5 ticks on Wednesday. The 10-year T-note yield rose +4.5 bp to 4.833%. T-notes fell to a 20-month nearest-futures low on Wednesday, and the 10-year T-note yield rose to a 2.75-year high of 4.853%. T-notes are under pressure from higher crude oil prices, which are boosting inflation expectations, as WTI crude oil rose more than +3% on Wednesday to a 3.25-month high. T-notes added to their losses on Wednesday after the Treasury announced that it will buy back up to $6 billion in longer-dated US Treasuries, below expectations of at least $10 billion.
T-notes recovered from their worst level on Wednesday amid strong demand for the Treasury’s $39 billion auction of 10-year T-notes. The auction had a bid-to-cover ratio of 2.71, well above the 10-auction average of 2.49.
European government bond yields moved higher on Wednesday. The 10-year German bund yield climbed to a new 15-year high of 3.444% and finished up +7.8 bp on that high. The 10-year UK gilt yield rose +8.8 bp to 5.261%.
French July manufacturing production unexpectedly fell -0.8% m/m, weaker than expectations of a +0.4% m/m increase.
Markets are discounting a 100% chance of a +25 bp ECB rate hike at Thursday’s policy meeting.
US Stock Movers
Telecommunication and cable providers moved lower on Wednesday, led by a -6% fall in Comcast (CMCSA), which led losers in the Nasdaq 100 after CFO Armstrong said he sees no improvement in Q3 broadband subscriber losses. Charter Communications (CHTR) also fell more than 8%, and Verizon Communications (VZ) and AT&T (T) closed down more than 1%.
Chipmakers and AI-infrastructure stocks moved higher on Wednesday, limiting losses in the overall market. Marvell Technology (MRVL) closed up more than +4%, and Advanced Micro Devices (AMD) closed up more than +3%. Also, Micron Technology (MU) closed up more than +2%, and ARM Holdings (ARM), Western Digital (WDC), SanDisk (SNDK), Intel (INTC), Texas Instruments (TXN), and Qualcomm (QCOM) closed up more than +1%.
Energy producers and service providers rallied on Wednesday after WTI crude oil rose more than +3% to a 3.25-month high. APA Corp (APA) and ExxonMobil Holdings (XOM) closed up more than +2%. Also, Chevron (CVX), Devon Energy (DVN), Diamondback Energy (FANG), Occidental Petroleum (OXY), ConocoPhillips (COP), and Valero Energy (VLO) closed up more than +1%.
ServiceTitan (TTAN) closed down more than -29% after reporting a Q2 EPS loss of -26 cents, a bigger loss than the consensus of -25 cents.
Casy’s General Stores (CASY) closed down more than -14% to lead losers in the S&P 500 after reporting a Q1 gross margin of 21.8%, below the consensus of 22.3%.
Chewy (CHWY) closed down more than -10% after forecasting a sequential decline in Q3 gross margin, due to a timing shift as certain rebate benefits shifted from the second half of the year into Q2.
Smithfield Foods (SFD) closed down more than -6% after cutting its Q3 earnings outlook, citing “continued compression in the industry fresh pork market spread and lower hog prices.”
Dyne Therapeutics (DYN) closed down more than -5% after JPMorgan Chase downgraded the stock to underweight from neutral with a price target of $10.
Booking Holdings (BKNG) closed down more than -3% after losing an EU court fight over its takeover of Sweden’s Etraveli Group, when a judge said regulators were right to conclude that the planned buyout threatened fair competition.
Chime Financial (CHYM) closed up more than +7% after boosting its full-year revenue forecast to $2.76 billion to $2.77 billion from a previous forecast of $2.73 billion to $2.75 billion, stronger than the consensus of $2.74 billion.
Meta Platforms (META) closed up more than +6% after analysts reported positive reviews of the company’s debut of Muse, an AI assistant.
HP Inc (HPQ) closed up more than +3% after announcing a pact with Red Hat on an AI platform.
Sysco (SYY) closed up more than +2% after raising its mid-term financial targets for fiscal years 2028 and 2029 to annualized net sales growth of 4% to 7%, up from a previous view of 4% to 6%.
Earnings Reports (9/10/2026)
Adobe Inc (ADBE), Copart Inc (CPRT), Macy's Inc (M), Oracle Corp (ORCL).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

Stocks Fall as Crude Prices Soar and Bond Yields Climb

The S&P 500 Index ($SPX) (SPY) is down -0.25% today, the Dow Jones Industrial Average ($DOWI) (DIA) is down -0.69%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.12%. E-mini S&P futures (ESU26) are down -0.92%, and September E-mini Nasdaq futures (NQU26) are up +0.11%.
Stock indexes are sliding today, with the Dow Jones Industrial Average falling to a 5-week low. The broader market is under pressure for a second day amid mounting inflation risks. WTI crude oil prices are up more than +3% today to a 3.25-month high amid escalating hostilities in the Middle East, heightening concerns about energy flows through the Strait of Hormuz. The surge in energy prices is boosting inflation expectations and pushing bond yields higher. The 10-year T-note yield rose to 4.85% today, the highest in 2.75 years. The higher bond yields are weighing on stocks.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
On the positive side, strength in chipmakers and AI-infrastructure stocks supports the Nasdaq 100 index. Energy producers are also climbing today on stronger crude oil prices.
Also, an escalating trade war between the US and Canada is weighing on market sentiment. On Tuesday, Canada imposed tariffs of 15% to 50% on hundreds of US goods in retaliation for the US action last month to impose 50% tariffs on $20 billion of imports from Canada. The US responded by moving to block imports of some Canadian products and slapping new tariffs on others, as well as seeking to bar Canadian companies from selling to US government contractors.
US MBA mortgage applications fell -2.7% in the week ended September 4, with the purchase mortgage sub-index down -0.2% and the refinancing mortgage sub-index down -6.2%. The average 30-year fixed-rate mortgage rose +6 bp to a 14-month high of 6.85% from 6.79% in the prior week.
Oct WTI crude oil prices (CLV26) are up more than +3% today at a 3.25-month high due to the latest escalation of hostilities in the Middle East. The US destroyed five Iranian tankers carrying crude in response to two attempts by Iran to hit US Navy ships with ballistic missiles. Iran responded by firing missiles at a US air base in Jordan and warning ships in the Persian Gulf that they would be attacked.
The markets are discounting a 62% chance of a +25 bp rate hike at the next FOMC meeting on September 15-16.
Overseas stock markets are mixed today. The Euro Stoxx 50 fell to a 5-week low and is down -1.65%. China's Shanghai Composite closed up +0.28%. Japan's Nikkei-225 Stock Average closed down -0.19%.
Interest Rates
December 10-year T-notes (ZNZ6) are down by -6 ticks today. The 10-year T-note yield is up +2.8 bp to 4.830%. T-notes fell to a 20-month nearest-futures low today, and the 10-year T-note yield rose to a 2.75-year high of 4.849%. T-notes are under pressure from higher crude oil prices, which are boosting inflation expectations, as WTI crude oil is up more than +3% to a 3.25-month high. Supply pressures are also weighing on T-note prices as the Treasury will auction $39 billion in 10-year T-notes later today. T-notes added to their losses today after the Treasury announced that it will buy back up to $6 billion in longer-dated US Treasuries, below expectations of at least $10 billion.
European government bond yields are moving higher today. The 10-year German bund yield climbed to a new 15-year high of 3.433% and is up +6.4 bp to 3.430%. The 10-year UK gilt yield is up +7.5 bp to 5.248%.
French July manufacturing production unexpectedly fell -0.8% m/m, weaker than expectations of a +0.4% m/m increase.
Markets are discounting a 100% chance of a +25 bp ECB rate hike at Thursday’s policy meeting.
US Stock Movers
Chipmakers and AI-infrastructure stocks are moving higher today, a positive factor for the overall market. Marvell Technology (MRVL) is up more than +5%, and Advanced Micro Devices (AMD) and Micron Technology (MU) are up more than +3%. Also, ARM Holdings (ARM), Western Digital (WDC), and SanDisk (SNDK) are up more than +2%. In addition, Intel (INTC) and Qualcomm (QCOM) are up more than +1%.
Energy producers and service providers are moving higher today, with WTI crude up more than +3% at a 3.25-month high. APA Corp (APA) is up more than +2%, and ExxonMobil Holdings (XOM), Occidental Petroleum (OXY), ConocoPhillips (COP), and SLB Ltd (SLB) are up more than +1%. Also, Chevron (CVX) is up more than +1% to lead gainers in the Dow Jones Industrials.
ServiceTitan (TTAN) is down more than -30% after reporting a Q2 EPS loss of -26 cents, a bigger loss than the consensus of -25 cents.
Casy’s General Stores (CASY) is down more than -14% to lead losers in the S&P 500 after reporting a Q1 gross margin of 21.8%, below the consensus of 22.3%.
Chewy (CHWY) is down more than -7% after forecasting a sequential decline in Q3 gross margin, due to a timing shift as certain rebate benefits shifted from the second half of the year into Q2.
Smithfield Foods (SFD) is down more than -6% after cutting its Q3 earnings outlook, citing “continued compression in the industry fresh pork market spread and lower hog prices.”
Booking Holdings (BKNG) is down more than -4% to lead losers in the Nasdaq 100 after losing an EU court fight over its takeover of Sweden’s Etraveli Group, when a judge said regulators were right to conclude that the planned buyout threatened fair competition.
Dyne Therapeutics (DYN) is down more than -2% after JPMorgan Chase downgraded the stock to underweight from neutral with a price target of $10.
Meta Platforms (META) is up more than +6% to lead gainers in the S&P 500 and Nasdaq 100 after analysts reported positive reviews of the company’s debut of Muse, an AI assistant.
Chime Financial (CHYM) is up more than +5% after boosting its full-year revenue forecast to $2.76 billion to $2.77 billion from a previous forecast of $2.73 billion to $2.75 billion, stronger than the consensus of $2.74 billion.
Dell Technologies (DELL) is up more than +3% after Evercore ISI raised its price target on the stock to $650 from $575.
Earnings Reports (9/9/2026)
AeroVironment Inc (AVAV), Chewy Inc (CHWY), Cooper Cos Inc/The (COO), Core & Main Inc (CNM), SailPoint Inc (SAIL), Sunbelt Rentals Holdings Inc (SUNB).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart

Stocks and Bonds Fall as Crude Oil Surges

The S&P 500 Index ($SPX) (SPY) is down -0.25% today, the Dow Jones Industrial Average ($DOWI) (DIA) is down -0.69%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.12%. E-mini S&P futures (ESU26) are down -0.92%, and September E-mini Nasdaq futures (NQU26) are up +0.11%.
Stock indexes are mostly lower today, with the Dow Jones Industrial Average falling to a 5-week low. The broader market is under pressure for a second day amid mounting inflation risks. WTI crude oil prices are up more than +2% today to a 3.25-month high amid escalating hostilities in the Middle East, heightening concerns about energy flows through the Strait of Hormuz. The surge in energy prices is boosting inflation expectations and pushing bond yields higher. The 10-year T-note yield rose to 4.82% today, the highest in 2.75 years. The higher bond yields are weighing on stocks.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
On the positive side, strength in chipmakers and AI-infrastructure stocks is supporting the Nasdaq 100 index. Energy producers are also climbing today on the strength in crude oil prices.
Also, an escalating trade war between the US and Canada is weighing on market sentiment. On Tuesday, Canada imposed tariffs of 15% to 50% on hundreds of US goods in retaliation for the US action last month to impose 50% tariffs on $20 billion of imports from Canada. The US responded by moving to block imports of some Canadian products and slapping new tariffs on others, as well as seeking to bar Canadian companies from selling to US government contractors.
US MBA mortgage applications fell -2.7% in the week ended September 4, with the purchase mortgage sub-index down -0.2% and the refinancing mortgage sub-index down -6.2%. The average 30-year fixed-rate mortgage rose +6 bp to a 14-month high of 6.85% from 6.79% in the prior week.
Oct WTI crude oil prices (CLV26) are up more than +2% today at a 3.25-month high due to the latest escalation of hostilities in the Middle East. The US destroyed five Iranian tankers carrying crude in response to two attempts by Iran to hit US Navy ships with ballistic missiles. Iran responded by firing missiles at a US air base in Jordan and warning ships in the Persian Gulf that they would be attacked.
The markets are discounting a 64% chance of a +25 bp rate hike at the next FOMC meeting on September 15-16.
Overseas stock markets are mixed today. The Euro Stoxx 50 fell to a 5-week low and is down -1.61%. China's Shanghai Composite closed up +0.28%. Japan's Nikkei-225 Stock Average closed down -0.19%.
Interest Rates
December 10-year T-notes (ZNZ6) are down by -3 ticks today. The 10-year T-note yield is up +0.8 bp to 4.810%. T-notes fell to a 2.75-year nearest-futures low today, and the 10-year T-note yield rose to a 2.75-year high of 4.816%. T-notes are under pressure from higher crude oil prices, which are boosting inflation expectations, as WTI crude oil is up more than +2% to a 3.25-month high. Supply pressures are also weighing on T-note prices as the Treasury will auction $39 billion in 10-year T-notes later today.
European government bond yields are moving higher today. The 10-year German bund yield climbed to a new 15-year high of 3.423% and is up +5.0 bp to 3.416%. The 10-year UK gilt yield is up +5.1 bp to 5.225%.
French July manufacturing production unexpectedly fell -0.8% m/m, weaker than expectations of a +0.4% m/m increase.
Markets are discounting a 100% chance of a +25 bp ECB rate hike at its next policy meeting on September 10.
US Stock Movers
Weakness in health insurance stocks is weighing on the broader market today. UnitedHealth Group (UNH)is down more than -5% to lead losers in the Dow Jones Industrials, and Centene (CNC) is down more than -4%. Also, Humana (HUM) and Molina Healthcare (MOH) are down more than -3%, and CVS Health Corp (CVS) and Elevance Health (ELV) are down more than -2%. In addition, Cigna Group (CI) is down more than -1%.
Chipmakers and AI-infrastructure stocks are moving higher today, a positive factor for the overall market. Marvell Technology (MRVL) is up more than +5% to lead gainers in the S&P 500 and Nasdaq 100. Also, ARM Holdings (ARM) is up more than +4%, and Advanced Micro Devices (AMD), Micron Technology (MU), and SanDisk (SNDK) are up more than +3%., In addition, Western Digital (WDC) is up more than +2%, and Qualcomm (QCOM) is up more than +1%.
Energy producers and service providers are moving higher today, with WTI crude up more than +2% at a 3.25-month high. APA Corp (APA), Baker Hughes (BKR), Diamondback Energy (FANG), ExxonMobil Holdings (XOM), Halliburton (HAL), Marathon Petroleum (MPC), Occidental Petroleum (OXY), and SLB Ltd (SLB) are up more than +2%, and Chevron (CVX) is up more than +2% to lead gainers in the Dow Jones Industrials. Also, ConocoPhillips (COP) and Devon Energy (DVN) are up more than +1%.
ServiceTitan (TTAN) is down more than -19% after reporting a Q2 EPS loss of -26 cents, a bigger loss than the consensus of -25 cents.
Casy’s General Stores (CASY) is down more than -17% to lead losers in the S&P 500 after reporting a Q1 gross margin of 21.8%, below the consensus of 22.3%.
Chewy (CHWY) is down more than -7% after forecasting a sequential decline in Q3 gross margin, due to a timing shift as certain rebate benefits shifted from the second half of the year into Q2.
Smithfield Foods (SFD) is down more than -6% after cutting its Q3 earnings outlook, citing “continued compression in the industry fresh pork market spread and lower hog prices.”
Booking Holdings (BKNG) is down more than -4% to lead losers in the Nasdaq 100 after losing an EU court fight over its takeover of Sweden’s Etraveli Group, when a judge said regulators were right to conclude that the planned buyout threatened fair competition.
Dyne Therapeutics (DYN) is down more than -3% after JPMorgan Chase downgraded the stock to underweight from neutral with a price target of $10.
Chime Financial (CHYM) is up more than +7% after boosting its full-year revenue forecast to $2.76 billion to $2.77 billion from a previous forecast of $2.73 billion to $2.75 billion, stronger than the consensus of $2.74 billion.
Meta Platforms (META) is up more than +5% to lead gainers in the S&P 500 and Nasdaq 100 after analysts reported positive reviews of the company’s debut of Muse, an AI assistant.
Dell Technologies (DELL) is up more than +5% after Evercore ISI raised its price target on the stock to $650 from $575.
Earnings Reports (9/9/2026)
AeroVironment Inc (AVAV), Chewy Inc (CHWY), Cooper Cos Inc/The (COO), Core & Main Inc (CNM), SailPoint Inc (SAIL), Sunbelt Rentals Holdings Inc (SUNB).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

Stocks Pressured as Inflation Fears Boost Bond Yields

Key Points
Qualcomm's growing influence in AI chips, as evident from its recent contract wins, is likely to translate into stronger growth for the company.
The company's valuation is attractive right now, which could pave the way for a nice surge in its stock price over the next three years.
Nvidia, Advanced Micro Devices, and Broadcom are among the leading artificial intelligence (AI) semiconductor companies, as major hyperscalers and AI labs are deploying their chip designs to run workloads in data centers.
Not surprisingly, all three companies have surged impressively over the past three years, clocking gains of more than 300% on the market. These semiconductor stocks could continue to deliver healthy long-term growth, driven by aggressive investments in AI data center infrastructure. However, there is a strong likelihood that they could be overshadowed by an underrated semiconductor company that has failed to capitalize on the AI boom so far -- Qualcomm (NASDAQ: QCOM).
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Let's look at the reasons why Qualcomm could outperform its peers.
Qualcomm's growth is poised to pick up thanks to AI
While Nvidia, AMD, and Broadcom have seen their share prices jump by more than 4x over three years, Qualcomm has clocked measly gains of just 63%. The PHLX Semiconductor Sector index, for comparison, has appreciated 232% in three years.
Qualcomm's poor returns aren't surprising. Its reliance on the smartphone market, where growth is difficult to come by, has kept its top and bottom lines under pressure. However, Qualcomm is now aiming to make a significant dent in the AI chip market. The company has been designing server central processing units (CPUs), AI accelerators, and rack-scale server systems to capitalize on the growing demand for agentic AI and inference applications.
Importantly, Qualcomm's efforts are bearing fruit. This is evident from the partnerships that Qualcomm has been striking with major hyperscalers. The chip designer announced an agreement with Meta Platforms in June to supply its Dragonfly data center CPUs. Qualcomm notes that these chips will power the advertising giant's next-generation AI servers. Even better, Qualcomm points out that Meta will deploy future generations of its server CPUs.
And now, Qualcomm's latest announcement that it is partnering with Amazon to make multiple generations of custom AI chips and optical connectivity components explains that it is indeed making a name for itself in AI chips. These partnerships explain why Qualcomm sees its data center revenue accelerating impressively.
The company estimates that its data center revenue will hit $5 billion in fiscal 2027 and scale up to $15 billion in fiscal 2029. The growing contribution from the data center segment should lift Qualcomm's growth rate. For instance, consensus estimates point to a 3% decline in Qualcomm's revenue to $43 billion in fiscal 2026. However, the forecast for the next couple of years points to a significant improvement.
I won't be surprised to see Qualcomm's growth exceeding estimates if it adds more hyperscalers and AI companies to its client list.
A strong bottom-line jump and a cheap valuation could send the stock higher
Qualcomm trades at under 17 times forward earnings, cheaper than its peers mentioned in this article.
However, an acceleration in the company's growth rate could be rewarded with a higher valuation. The good news is that Qualcomm's earnings-per-share growth rate could approach 25% in fiscal 2028.
If this AI stock trades at even 30 times earnings at that time, on account of its improving growth trajectory, a discount to the tech-focused Nasdaq-100 index's earnings multiple of 34, its price could jump to $390. That's 124% higher than its current stock price, suggesting that Qualcomm could witness a big rally and even outperform the other chip stocks mentioned in this article.
Should you buy stock in Qualcomm right now?
Before you buy stock in Qualcomm, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Qualcomm wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $414,015!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,385,459!*
Now, it’s worth noting Stock Advisor’s total average return is 960% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, Broadcom, Meta Platforms, Nvidia, and Qualcomm. The Motley Fool has a disclosure policy.

The Overlooked Chip Stock Poised to Outperform Nvidia, AMD, and Broadcom in the AI Semiconductor Boom

Key Points
Qualcomm is working to expand its non-handset business and capture some of the growing data center market.
Its deal with Amazon comes after signing Meta Platforms as its first data center customer.
Qualcomm believes there is a $1 trillion total market opportunity in its data center segment.
Qualcomm (NASDAQ:QCOM) isn't one of the first names that come to mind when considering data center infrastructure, but that may change soon. The chip company announced a deal with Amazon (NASDAQ:AMZN) to buy up to $60 billion of its AI data center chips.
As part of the deal, Qualcomm will grant Amazon warrants worth about $4 billion that will vest with product purchases. Amazon will be able to purchase Qualcomm shares at $161.26 per share.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Qualcomm and Amazon will also work together to improve high-performance optical connectivity to support fast-growing bandwidth demands in AI infrastructure. And Qualcomm will increase its use of Amazon Web Services and Amazon Bedrock infrastructure to reduce chip design cycles.
"As AI demand accelerates, data center infrastructure will require advances in both computing and connectivity to deliver greater performance with more efficiency," Qualcomm CEO Cristiano Amon said. "Qualcomm is pleased to work with AWS on customized silicon and connectivity solutions, bringing decades of leadership in advanced processing and power-efficient compute, to deliver breakthrough performance and enable the next generation of AI infrastructure."
Image source: The Motley Fool.
Qualcomm's partnership with Amazon is expected to continue for multiple generations of chips for large-scale AI data centers. It signals Qualcomm's growing effort to broaden its portfolio beyond smartphones -- particularly important, as Apple has announced plans to phase out its reliance on Qualcomm cellular modems and use in-house C-series silicon.
About Qualcomm stock
Qualcomm, which is based in San Diego, has long been best known for designing high-performance, low-power chips for mobile devices, personal computers, automobiles, robotics, and wearable devices. Shares have been on a roller-coaster this year and have fallen throughout the summer.
Revenues for the fiscal third quarter (ending June 28) fell 4% to $9.94 billion, net income dropped 25% to $2 billion, and diluted earnings per share slid 23% to $1.87. Handset revenue plummeted 20% to $5.08 billion.
Meanwhile, Qualcomm said it expects its Apple revenue to fall 50% from the September to December quarter, although that will be offset somewhat by sequential growth in Android phones.
Qualcomm enters the data center market
It's against this backdrop that Qualcomm is pinning its hopes on securing a foothold in the fast-growing AI data center market.
Qualcomm previously identified Meta Platforms as its first data center customer, announcing in June that it reached a multi-generation supply agreement to power Meta's servers with Dragonfly C1000 CPUs. It also acquired AI software start-up Modular in an all-stock deal valued at nearly $4 billion. Modular makes software that supports CPUs, GPUs, and custom chip architectures, enabling AI models to run across them without requiring developers to rewrite code for each processor.
"This is the ideal and logical time for Qualcomm to enter the market, as agentic workloads are reshaping the economics of AI," Amon said. "Efficient token generation and total cost of ownership are fundamental to scaling AI. And as a result, inference is becoming disaggregated in the data center and will be increasingly distributed. This means hybrid inference will evolve across the entire compute continuum from data center to on-premise network edge and edge devices. Given Qualcomm's assets, it's a natural evolution of our growth story."
Qualcomm is projecting that its non-handset business -- including automotive, technology for the Internet of Things, and data center -- will rise to $40 billion by the 2029 fiscal year, or roughly two-thirds of Qualcomm's revenue for its semiconductor business. That is a dramatic change from its 2025 fiscal year, when handset revenue made up about 75% of the segment's revenue.
Qualcomm believes there is a $1 trillion total market opportunity in its data center segment, including connectivity, custom silicon, AI accelerators, and server-class CPUs. It aims to generate more than $15 billion in that business by 2029, with a long-term goal of capturing 5% of the total market.
The Amazon deal is a major step toward Qualcomm achieving its goal. Qualcomm stock rose 3% on Tuesday's announcement.
Should you buy stock in Qualcomm right now?
Before you buy stock in Qualcomm, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Qualcomm wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $414,015!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,385,459!*
Now, it’s worth noting Stock Advisor’s total average return is 960% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Patrick Sanders has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, Meta Platforms, and Qualcomm. The Motley Fool has a disclosure policy.

Forget Smartphones: Qualcomm Just Landed a Massive AI Deal With Amazon

Key Points
Qualcomm is teaming up with Amazon to build next-generation AI data centers.
Amazon obtained a warrant to buy up to $4 billion of Qualcomm's stock as part of the agreement.
Shares of Qualcomm (NASDAQ: QCOM) rose as much as 8.7% on Tuesday after the semiconductor designer struck a potentially highly lucrative partnership with Amazon (NASDAQ: AMZN).
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Accelerating the AI boom
Qualcomm will help Amazon develop custom artificial intelligence (AI) chips to power its industry-leading cloud computing business.
Amazon Web Services (AWS) will also deploy Qualcomm's advanced optical connectivity solutions to speed up data transfers across Amazon's sprawling data center network.
The shift from AI model training to inference -- using trained models to make predictions -- is creating an even greater need for power-efficient computing infrastructure.
That just happens to be Qualcomm's specialty.
The semiconductor designer has built expertise in energy-efficient processors over nearly two decades of developing high-performance, low-power chips for the smartphone market.
As part of the deal, Amazon obtained a warrant to buy up to 25 million shares of Qualcomm's stock at an exercise price of $161.26 per share. The warrant vests in stages based on up to $60 billion in chip orders and related purchases. It expires on Sept. 3, 2036.
A strong vote of confidence for Qualcomm's AI chips
The global smartphone industry's slowing growth has prompted Qualcomm to seek greener pastures -- and there aren't many greener than the AI data center build-out race.
Earning Amazon's stamp of approval could provide a powerful boost to Qualcomm's AI customer acquisition efforts.
Should you buy stock in Qualcomm right now?
Before you buy stock in Qualcomm, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Qualcomm wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,997!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,413,876!*
Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Qualcomm. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Indicator	TTM Median
P/E	16.85 34.68
Price/Sales	4.09 2.81
P/B	8.96 3.02
P/FCF	17.35 23.22

Indicator	TTM Median
ROE	37.33 13.98
ROA	18.45 6.72
ROI	23.68 10.13
Net Worth	178.11 1.05
Quick Ratio	1.28 1.56
Current Ratio	2.02 1.88

Indicator	TTM Median
Net Profit Margin	21.01 10.17
Operating Margin	23.19 10.71
Gross Margin	54.23 50.00
Return on tangible equity	94.27 26.33

Indicator	TTM Median
EPS	1.53 0.36
EPS Forecast	1.54 0.25
Revenue	9.95B 67.00M
Gross Profit	5.28B —
EBITDA	2.02B —

QUALCOMM Incorporated

Recent quarterly and TTM performance

Valuation

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Revenue