Qualcomm stock trades around recent highs as AI and handset recovery shape outlook

Qualcomm stock has been trading around its recent highs in 2026 as investors weigh stronger AI-related demand against a still-gradual recovery in global 5G handset volumes. The San Diego-based chip designer Qualcomm Inc. (ISIN US7475251036) reported higher revenue and earnings in its latest fiscal quarter in 2025, signaling that both handset and automotive demand are improving compared with the prior year.

Revenue up double digits in latest quarter

According to the companys most recently reported quarterly results in fiscal 2025, Qualcomm generated a clearly higher revenue figure than in the same period a year earlier, reflecting double-digit percentage growth driven by mobile handsets, automotive chips, and emerging AI-centric products for data centers. In that quarter, the year-over-year revenue increase was in the teens percentage range, contrasting with the mid-single-digit decline recorded in a comparable quarter of fiscal 2024 when handset demand was still weak and inventory digestion in the Android ecosystem weighed on results.

The improvement in revenue also showed up in segment data. In the latest reported quarter of fiscal 2025, revenue from Qualcomm CDMA Technologies (QCT) rose by a notable double-digit percentage compared with the same period in fiscal 2024, supported by stronger Snapdragon platform shipments into premium and mid-range smartphones. By contrast, in fiscal 2024 QCT revenue had fallen year over year as OEMs reduced orders amid channel inventories and slower replacement cycles. This swing from decline to growth in QCT is one of the strongest indicators that the handset market has moved from correction to recovery.

Beyond handsets, the automotive segment continued to expand from a smaller base. In the latest quarter of fiscal 2025, automotive revenue was higher than a year earlier by a multi tens-of-percent rate, building on already-strong growth in fiscal 2024 when automotive revenue rose by more than thirty percent year over year. That acceleration reflects rising adoption of Qualcomm platforms in infotainment, driver-assistance, and connectivity systems, and it is increasingly visible in multiyear design wins with major carmakers.

Margin recovery supports earnings growth

The revenue improvement fed through to profitability. In the same fiscal 2025 quarter, Qualcomm reported a higher operating margin and earnings per share than in the prior-year period. Year-over-year, earnings per share increased by a double-digit percentage, benefiting from cost discipline, better mix in high-end chipsets, and the early contribution of AI-focused products. In fiscal 2024, EPS had been under pressure, declining versus the previous year as weaker handset demand and pricing weighed on gross margin; the reversal to growth in fiscal 2025 provides a quantified sign that the worst of that cycle is likely behind the company.

Gross margin trends underline this shift. In the latest fiscal 2025 quarter, gross margin improved by several percentage points compared with the same quarter a year earlier. The improvement contrasted with gross margin compression in fiscal 2024, when unit pricing and utilization levels were less favorable. For investors, this margin trajectory matters because it supports the sustainability of earnings growth even if top-line expansion moderates as the handset recovery normalizes.

On a full-year basis, the last completed fiscal year before 2026 also showed stabilization. In Qualcomm’s fiscal 2024, total revenue declined versus fiscal 2023 by a mid-single-digit percentage as the company navigated a downcycle in Android demand and geopolitical constraints in certain markets. Within that year, however, the second half already showed sequential revenue growth over the first half, setting the stage for the stronger quarter reported in fiscal 2025 where year-on-year comparisons turned positive.

Cash returns and balance sheet strength

Qualcomm’s cash-return profile remains a central part of the investment case. In the latest reported fiscal year prior to 2026, the company returned several billions of dollars to shareholders via share repurchases and cash dividends. That year, total capital returned was in the high single-digit billions of USD, slightly below the level seen in an earlier peak year when Qualcomm returned around ten billion USD as it capitalized on strong cash generation and a robust net cash position.

Dividend metrics provide another concrete comparison. Over the period from fiscal 2023 to fiscal 2025, Qualcomm’s annual dividend per share rose by a mid-single-digit percentage, reflecting the companys long-standing practice of incremental dividend increases. In fiscal 2024, the company raised its quarterly dividend by a few cents per share, corresponding to a low- to mid-single-digit percentage increase versus the prior rate. That measured but consistent progression contributes to total shareholder return and underscores management’s confidence in future cash flows.

On the balance sheet, Qualcomm has maintained a solid liquidity position. At the end of the most recent fiscal year before 2026, the company held several billions of dollars in cash, cash equivalents, and marketable securities. Net of debt, its net cash position remained positive, although somewhat lower than in an earlier period when cash balances were boosted by proceeds from licensing income and lower capital expenditure. This flexibility allows Qualcomm to keep investing in research and development while continuing buybacks and dividends.

AI and data-center opportunity quantified

Investors increasingly look at Qualcomm through the lens of AI and data-center growth. In its recent disclosures around fiscal 2025, the company highlighted initial revenue contributions from AI accelerator products aimed at data centers and on-device AI processing. While still representing a small portion of total sales, these AI-related revenues were up strongly versus their starting level in fiscal 2024, with growth described in triple-digit percentage terms off a low base.

In addition to dedicated accelerators, Qualcomm expects AI workloads on smartphones and PCs to drive demand for more capable Snapdragon platforms. Internal estimates discussed around fiscal 2024 and 2025 implied that the addressable market for AI-capable edge devices could expand meaningfully, with tens of billions of USD in potential silicon content across smartphones, laptops, and embedded systems over several years. Though these numbers are projections rather than realized revenue, they frame the longer-term growth opportunity and explain part of the investor focus on Qualcomm’s AI roadmap.

Licensing revenue from Qualcomm Technology Licensing (QTL) also benefits indirectly from AI and advanced connectivity, as each new generation of wireless standards and device capabilities drives renewed license arrangements and royalty streams. In the most recently reported fiscal year before 2026, QTL revenue showed relative stability compared with the prior year, declining only modestly despite handset unit weakness, which underscores the resilience of the licensing model.

Handset recovery and regional demand

The global handset market has been a key swing factor for Qualcomm. Industry data over 2023 and 2024 indicated that worldwide smartphone shipments declined in 2023 by around a mid-single-digit percentage, before returning to growth in 2024 as the 5G installed base expanded and replacement cycles normalized. The improvement was more pronounced in certain regions where Android demand had previously been weak, which aligns with Qualcomm’s observation that inventory digestion in those markets completed by late fiscal 2024.

In its latest reported quarter in fiscal 2025, Qualcomm’s handset-related revenue reflected this recovery, with unit shipments and average selling prices higher than in the same quarter a year earlier. The company also pointed to stronger demand for premium-tier devices, where Snapdragon platforms command higher margins. That mix shift is consistent with the gross margin improvement mentioned earlier and is likely to remain an important driver of profitability in future quarters.

Regional exposure remains diverse. Qualcomm generates a large share of its revenue from handset OEMs based in Asia, including China, Korea, and other manufacturing hubs. Over fiscal 2024 and 2025, regional revenue data showed that China-related sales had declined versus earlier years because of competitive dynamics and macroeconomic factors, but other regions such as North America and India contributed incremental growth. The net effect was a gradual rebalancing of Qualcomm’s geographic revenue footprint.

Automotive and Internet of Things growth

Beyond handsets, Qualcomm’s automotive business has emerged as a structural growth area. In fiscal 2024, automotive revenue grew by more than thirty percent year over year from a base in the hundreds of millions of USD, and the company’s disclosed design-win pipeline pointed to a cumulative potential lifetime value in the tens of billions of USD. In the latest fiscal 2025 quarter, automotive revenue increased again versus the prior-year quarter, contributing a growing share of overall QCT revenue even though handsets still dominate.

Qualcomm’s Internet of Things (IoT) segment also contributes to diversification. In fiscal 2024, IoT revenue faced headwinds, declining versus fiscal 2023 as certain consumer and industrial customers adjusted inventories. However, the most recent quarter in fiscal 2025 showed signs of stabilization, with IoT revenue roughly flat to slightly up compared with the year-ago period. The company emphasizes opportunities in industrial IoT, networking, and extended reality (XR), which over time could offset volatility in consumer-focused categories.

For investors, this combination of automotive and IoT growth alongside a recovering handset business offers a more balanced revenue mix. It means that even if handset demand slows again, non-handset segments can contribute incremental growth and help smooth out cyclical swings.

Representative Snapdragon product line

A representative product line for Qualcomm is its Snapdragon family of application processors and modems, which power many premium and mid-range smartphones worldwide. Recent flagship generations, such as the Snapdragon 8 series launched across fiscal 2024 and 2025, include integrated 5G modems and dedicated AI engines that accelerate on-device tasks ranging from photography to language processing.

These Snapdragon platforms underpin much of the QCT revenue discussed earlier. As handset OEMs adopt newer generations, Qualcomm benefits both from higher unit shipments and from richer silicon content per device. In addition, Snapdragon-branded solutions are expanding into PCs, XR headsets, and automotive infotainment systems, extending the franchise beyond smartphones.

Qualcomm stock and market context

Qualcomm stock is listed on the Nasdaq Stock Market in the United States under the ticker symbol QCOM. At a recent point in 2026, the shares were trading around a level that was near their 52-week high, reflecting the earnings recovery and optimism around AI-related growth. Over the preceding twelve months, the stock’s percentage change was positive, with the price up meaningfully compared with its level a year earlier when handset demand was still in the trough phase.

That share-price performance places Qualcomm among the more strongly recovering semiconductor names tied to both consumer electronics and emerging AI workloads. While the stock is sensitive to macroeconomic conditions and cyclical swings in device demand, the company’s diversified segment mix, improving margins, and consistent cash returns provide a fundamental backdrop that investors can track as they evaluate the future trajectory of Qualcomm stock.