Qualcomm Stock Is Down 14.6% From Its High, But QCOM Faces Too Many Headwinds to Rush In and Buy the Dip Amit Singh Sat, June 27, 2026 at 8:00 AM PDT 3 min read QCOM Data Center by Caureem via Shutterstock (2) After a strong rally, Qualcomm (QCOM) has lost momentum. The stock has fallen 14.6% from its recent high and is down 20.13% over the past month, reflecting valuation concerns and a challenging smartphone market. The recent pullback comes after Qualcomm's sharp three-month rally pushed its valuation to elevated levels. At the same time, rising demand for AI infrastructure has tightened memory supply, driving up memory prices and increasing costs for smartphone manufacturers. The impact has been particularly evident in China, where many handset makers have scaled back production plans and reduced inventory levels. More News from Barchart Billionaire Mark Cuban Says If We Fined Insurance Companies and Providers $100 Each Time They Overbilled, 'We Could Pay Off the National Debt' Tesla Left a Big Hole in Short Sellers' Pockets. It's SpaceX's Turn Now. Broadcom and OpenAI Just Unveiled the New Jalapeño AI Chip. What That Means for AVGO Stock. Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. As a result, Qualcomm's QCT Android handset business in China continues to face near-term pressure. Management expects revenue from Chinese handset customers to bottom in the third quarter before returning to sequential growth in the following quarter. Despite these headwinds, Qualcomm's long-term growth story remains intact. The company has solid opportunities in automotive, AI-powered edge computing, and data centers. www.barchart.com Qualcomm Is Becoming Much More Than a Smartphone Chip Company For decades, Qualcomm's business was driven by strong demand from the smartphone industry. While its mobile processors and modem chips continue to generate a significant amount of revenue, QCOM is no longer relying on smartphones as its primary growth engine. Instead, Qualcomm is transforming itself into a diversified AI and semiconductor powerhouse. That strategy is beginning to pay off. The company has expanded into high-growth markets, including automotive technology, IoT devices, industrial AI, robotics, and AI-powered data center infrastructure. These businesses not only reduce Qualcomm's dependence on the cyclical smartphone market but also position the company to benefit from some of the semiconductor industry's fastest-growing trends. Management's long-term financial targets reflect that confidence. Recently, Qualcomm doubled its fiscal 2029 non-handset revenue target to $40 billion, highlighting the accelerating contribution from businesses outside smartphones. Moreover, Qualcomm also focuses on data center revenue of more than $15 billion by 2029. Story Continues Automotive remains another major growth pillar. Qualcomm expanded its automotive design-win pipeline to $65 billion and now expects the segment to generate $10 billion in revenue by fiscal 2029. Meanwhile, the company is extending its AI platform into robotics and industrial automation, and is focusing on Physical AI opportunities. Looking further ahead, Qualcomm expects agentic AI to drive a new upgrade cycle across intelligent edge devices. Combined with long-term opportunities...
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