Qualcomm (QCOM) stock inched up on April 27 following reports that the chipmaker has partnered with OpenAI to develop specialized processors for an artificial intelligence (AI) native smartphone.
As investors cheered the bullish report from renowned analyst Ming-Chi Kuo, QCOM broke above its 100-day moving average (MA), indicating continued bullish momentum ahead.
Today’s rally brings a much-needed reprieve to Qualcomm shares, which have otherwise been a laggard in 2026, currently down about 17% from their year-to-date high.
Significance of OpenAI Partnership for Qualcomm Stock
A potential team-up with OpenAI is significantly bullish for QCOM shares as it positions the firm as the heart of the next hardware evolution.
While Qualcomm already dominates the Android ecosystem, collaborating on an OpenAI-branded device intended to replace traditional apps with AI agents will validate its AI-at-the-edge strategy.
By shifting AI processing from cloud to the device itself, Qualcomm reduces latency and enhances privacy — both key selling points for real-time artificial intelligence agents.
If the project hits its estimated 350 million annual shipments by 2028, it could diversify QCOM’s top-line growth and offset its looming revenue loss as Apple (AAPL) transitions to in-house modems.
QCOM Shares Are Cheap Ahead of Q2 Earnings
Even without the OpenAI hype, Qualcomm shares present a compelling opportunity for long-term investors given their attractive valuation.
At about 16x forward earnings, QCOM looks rather cheap for a company riding the AI wave.
Its management recently signaled confidence by authorizing a $20 billion stock buyback program, and the firm’s healthy 2.45% dividend yield makes up for another strong reason to stick with it in 2026.
That said, Qualcomm’s Q2 earnings on Apr. 29 may prove a near-term headwind. Consensus is for the company to report $1.90 per share in earnings, representing a more than 19% year-over-year decline.
How Wall Street Recommends Playing Qualcomm
Heading into its fiscal second-quarter release, Wall Street analysts are mostly bullish on Qualcomm.
According to Barchart, while the consensus rating on QCOM stock sits at a “Hold," price targets go as high as $205 currently, indicating potential upside of more than 35% from here.
On the date of publication, Wajeeh Khan 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.
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