Qualcomm Is Poised for a Breakout in 2027

Summary

Qualcomm is currently facing challenges in growth, reflected in its low valuation, but management anticipates a significant revenue boost from its non-handset segment, particularly driven by AI products. Despite a decline in smartphone sales, the company is optimistic about achieving over 60% growth in non-handset revenue by 2027, especially with new contracts like the one with Meta Platforms. This shift could position Qualcomm for a potential breakout as it navigates a weakening handset market.

Key takeaways

• Qualcomm's current low valuation is due to recent sluggish financial results, including a revenue decline in Q3 2026.
• The company expects non-handset revenue to accelerate significantly, driven by AI, potentially mitigating reliance on smartphone sales.
• A recent partnership with Meta Platforms for AI chips may provide a substantial revenue boost, setting the stage for growth in 2027.