Qualcomm stock jumps 15% as AI partnership with OpenAI, new Snapdragon chips and strong earnings boost investor confidence

Qualcomm stock jumped nearly 15% on Thursday morning as investors became more excited about the company’s growing role in the AI market. Later in the trading session, the stock cooled slightly but was still trading around 9% higher for the day. Qualcomm’s trading volume reached 17.9 million shares, which was more than double its normal 20-day average of 8.5 million shares for that time of day, according to Investing.com.

Investors believe Qualcomm is becoming a strong AI company instead of only depending on smartphone chips. One major reason behind the rally was reports about Qualcomm partnering with OpenAI to develop an AI-focused smartphone chip. The report said mass production of the AI-native smartphone chip could begin in 2028. Investors think this partnership could help create a completely new generation of AI-powered phones, according to Investing.com.

Qualcomm stock hits new high

Qualcomm stock reached $208.92 during morning trading and touched a fresh 52-week high of $209.23, as noted by Investing.com. Qualcomm’s previous big rally happened on April 30, 2026, after the company announced it would start shipping chips to a major hyperscaler data center customer earlier than expected.

Qualcomm earlier said those data center chip shipments would begin later this year instead of fiscal 2027. CEO Cristiano Amon said Qualcomm’s automotive business crossed $5 billion in annualized revenue for the first time. Cristiano Amon also said the company expects automotive revenue to cross a $6 billion run rate by the end of fiscal 2026. Qualcomm recently reported strong second-quarter earnings, which also helped boost investor confidence.

Qualcomm earnings beat estimates

The company posted adjusted earnings per share of $2.65, beating analyst expectations of $2.56. Qualcomm reported quarterly revenue of $10.60 billion, slightly above Wall Street expectations of $10.59 billion, as reported by Investing.com. Investors were impressed because Qualcomm beat estimates while also expanding beyond smartphones, according to Investing.com.

Qualcomm announced two new mobile chip platforms — Snapdragon 6 Gen 5 and Snapdragon 4 Gen 5 — to strengthen its smartphone business. The Snapdragon 6 Gen 5 platform delivers 20% faster app launches and 18% less screen stutter, according to Qualcomm. Snapdragon 6 Gen 5 also offers 21% better GPU performance and includes AI-powered camera features. The Snapdragon 6 Gen 5 supports both 5G and Wi-Fi 7 connectivity.

Qualcomm said the Snapdragon 4 Gen 5 chip brings 77% better GPU performance compared to earlier versions. Snapdragon 4 Gen 5 also supports 90FPS gaming for the Snapdragon 4-series for the first time. Qualcomm said the Snapdragon 4 Gen 5 gives 43% faster app launches and 25% less screen stutter. The Snapdragon 4 Gen 5 platform also supports Dual SIM Dual Active 5G connectivity.

Qualcomm expands data center business

Qualcomm said commercial devices using both new chip platforms will launch in the second half of 2026. Smartphone brands including Honor, OPPO, realme and REDMI are expected to use these chips. Qualcomm also completed its $2.3 billion acquisition of Alphawave to expand its data center business, as stated by Investing.com. The company announced an additional $20 billion stock buyback program. Qualcomm also increased its quarterly dividend from $0.89 to $0.92 per share.

Analysts became more positive on the stock after these developments. Argus Research raised Qualcomm’s price target from $180 to $220 while keeping a “Buy” rating. Argus said Qualcomm’s expansion into automotive technology and AI deserves a higher company valuation. Institutional investors also increased their investments in Qualcomm. Gateway Investment Advisers LLC increased its Qualcomm holdings by 2.4% during the fourth quarter, according to SEC filings cited by Investing.com.

US China tariff pause helps Qualcomm

Another important factor helping Qualcomm stock was the temporary 90-day tariff pause between the US and China. The tariff pause reduced worries about weak smartphone demand in China. China remains Qualcomm’s biggest smartphone chip market, making the tariff relief important for investors. The improved US-China trade situation also helped stabilize Android smartphone upgrades in China. The broader US stock market also remained positive, helping Qualcomm shares move higher.

The NASDAQ index rose 0.48% while the S&P 500 gained 0.13% during Thursday’s session, according to Investing.com. Investors now see Qualcomm as more than just a smartphone chip company. Markets believe Qualcomm is becoming a diversified AI computing company with businesses in smartphones, automotive tech, AI infrastructure and data centers.

Qualcomm’s next major test will come during its June 24 Investor Day event, where management is expected to give more details about its data center AI business. Analysts believe the company may still be in the early stages of a major long-term growth phase if its AI and data center plans succeed.

FAQs

Q1: Why did Qualcomm stock rise sharply?
Qualcomm stock jumped because investors became excited about its AI growth, strong earnings and reports of an AI smartphone chip partnership with OpenAI.

Q2: What is Qualcomm’s new AI smartphone project?
Reports say Qualcomm and OpenAI may develop an AI-focused smartphone chip that could enter mass production by 2028.