Qualcomm Inc. stock rose as the company unveiled an aggressive expansion into the AI data center market and set ambitious long-term revenue targets at its 2026 Investor Day. The company is reinforcing investor optimism over its push to diversify beyond its stagnating smartphone business by targeting significant growth in automotive, internet of things, and data center segments. Chief Executive Officer Cristiano Amon stated the company is building a comprehensive portfolio of solutions to become a full-stack player across physical AI and compute, emphasizing that open horizontal systems will win the market. Counterpoint Research analyst Neil Shah noted that Qualcomm is becoming one of the few semiconductor companies capable of delivering end-to-end AI infrastructure, spanning hyperscale data centers and edge devices, with a path toward generating $100 billion in annual recurring revenue within the next five to seven years.

Raised Financial Targets Through Fiscal 2029

Qualcomm raised its fiscal 2029 non-handset revenue target to $40 billion, representing an approximate twofold increase from its prior fiscal 2029 target. Chief Financial Officer Akash Palkhiwala noted this marks the company's third transformation, shifting from a devices company to a device and cloud company. The updated guidance breaks down the $40 billion target into specific segments: automotive revenue of $10 billion, IoT revenues of $14 billion or more, industrial, networking and robotics of $8 billion, personal AI and compute of $6 billion, and data center revenues of $15 billion or more. Under this new guidance, handsets are expected to account for around one-third of QCT revenue by fiscal 2029. Additionally, Qualcomm targets more than $18 non-GAAP diluted EPS for fiscal 2029.

Data Center Strategy And Meta Agreement

The company unveiled a data center AI infrastructure strategy targeting more than $15 billion in revenue by fiscal 2029. Executive Vice President & GM of Data Center Tony Pialis confirmed the company has won two major hyperscaler deals that will bring in meaningful revenue starting at the end of this year. As part of this expansion, Qualcomm Technologies, Inc. announced a strategic multi-generation agreement to supply data center CPUs for Meta Platforms, Inc. The first-generation Qualcomm Dragonfly C1000 CPU will power Meta’s next-generation server fleet, with production scheduled to begin in the second half of 2028. Meta Platforms CEO Mark Zuckerberg highlighted the partnership, stating it is critical to delivering personal superintelligence to everyone in the world.

Strategic Partnerships And Acquisition

Qualcomm expanded its partnership with Hugging Face to accelerate open, developer-focused artificial intelligence across devices and cloud infrastructure. The collaboration will integrate Qualcomm’s Snapdragon, Dragonwing and Dragonfly platforms with Hugging Face’s ecosystem of more than 3 million AI models and 16 million developers. Separately, Qualcomm agreed to acquire Modular Inc., adding an AI-native software platform that enables AI models to run across CPUs, GPUs, NPUs, and custom chips. Counterpoint highlighted Qualcomm’s recent acquisitions as key building blocks, noting that NUVIA provides the Oryon CPU architecture and Modular strengthens the software stack.

Technical Setup And Analyst Outlook

Qualcomm shares are up 2.37% at $193.88 during premarket trading on Monday. The stock sits about 15.6% above its 100-day simple moving average of $166.92 and 14.9% above its 200-day simple moving average of $167.92. However, the shares remain 11.3% below the 20-day simple moving average of $217.51 and 2.9% below the 50-day simple moving average of $198.72. The 50-day moving average crossed above the 200-day moving average in May, forming a bullish "golden cross." Key technical levels to watch include resistance around $206 and support near $190.50.

Wall Street expects earnings per share of $2.09 on revenue of $9.67 billion for the upcoming quarter, compared with EPS of $2.77 and revenue of $10.37 billion in the year-ago quarter. The stock trades at about 20.4 times earnings and carries a consensus Hold rating, with an average analyst price forecast of $209 based on coverage from 50 analysts.

Market analysts on CNBC’s Halftime Report selected Qualcomm, Merck, Rockwell Automation, and Simon Property Group as their final trades, citing corporate developments and updated financial targets. Jim Lebenthal of Cerity Partners named Qualcomm, highlighting the company's accelerated diversification strategy announced at its 2026 Investor Day. The semiconductor company updated its long-term revenue targets, expecting non-handset revenue of $40 billion by fiscal 2029. This target includes more than $15 billion in data center revenue, more than $14 billion in IoT revenue, and $10 billion in Automotive revenue. Additionally, Qualcomm expanded its partnership with Hugging Face to advance open, developer-focused artificial intelligence across devices and cloud infrastructure.

Stephanie Link of Hightower Advisors chose Rockwell Automation following the company's announcement on June 9. Rockwell Automation’s board approved an additional $1 billion to repurchase shares of common stock and declared a quarterly dividend of $1.38 per share. Joseph M. Terranova of Virtus Investment Partners recommended Merck after the company announced on June 22 that its investigational therapy tulisokibart achieved the primary endpoint in a Phase 3 study for moderately to severely active ulcerative colitis. Merck described this as the first positive Phase 3 induction results for an anti-TL1A biologic.

Joshua Brown of Ritholtz Wealth Management picked Simon Property Group after Barclays analyst Richard Hightower maintained the stock with an Equal-Weight rating and raised the price target from $212 to $213.

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