QCOM quality stock

What happened: Analysts have recently upgraded Qualcomm (QCOM), with Daiwa raising its rating to 'Outperform' and increasing its price target to $225. This follows a report by Reuters that Qualcomm and Snap's Spectacles unit are working together on smart glasses. QCOM's stock has surged, driven by strong Q2 FY2026 results, including four consecutive quarterly revenue beats and a 38% surge in automotive revenue to a record $1.326B. Notably, the company plans to ship an AI ASIC to a major hyperscaler in Q4 2026.

Market impact: The semiconductor sector, particularly AI-focused companies, is positively affected. QCOM's upgrades and strong performance have pushed its stock price up, with Wall Street firms like Citi, JPMorgan, and Wells Fargo raising their price targets. The company's AI ASIC shipment plans have sparked optimism about its hyperscaler catalyst, driving investor interest in the stock.

What to watch next: QCOM's Q3 FY2026 earnings, scheduled for July 25, will provide further insights into the company's performance and growth prospects. Additionally, the shipment of QCOM's AI ASIC to a major hyperscaler in Q4 2026 will be a key catalyst, as it could validate the company's AI capabilities and potential market demand. Lastly, any updates on the smart glasses project with Snap could also influence QCOM's stock price.