TLDR
- Qualcomm shares hit a 52-week high of $182.23, with shares jumping nearly 15% on Monday
- The company unveiled two new AI chips (AI200 and AI250) for data centers, launching in 2026 and 2027
- The stock has climbed 4.6% over the past year with a market capitalization of $185.89 billion
- Qualcomm acquired Alphawave for $2.4 billion in June to bolster its AI and data center capabilities
- The company trades at an earnings multiple of 16.39x and maintains a dividend yield of 2.18%
Qualcomm shares hit a new 52-week high of $182.23 on Monday. The rally came after the company unveiled its latest foray into the data center market.
The stock rose nearly 15% after the announcement. The semiconductor company unveiled two new artificial intelligence chips designed for data centers.
The new chips are called AI200 and AI250. They focus on improved memory capacity and running AI applications.
Commercial availability will not be immediate. The AI200 will launch in 2026, with the AI250 following in 2027.
This move represents Qualcomm’s try to diversify beyond smartphones. The company is targeting the rapidly growing AI infrastructure market.
Global investment in AI chips has skyrocketed recently. Cloud providers, chipmakers and enterprises are racing to build infrastructure for large language models and generative AI tools.
Expanding beyond mobile
The San Diego-based company has made strategic acquisitions. In June, Qualcomm agreed to buy Alphawave for about $2.4 billion.
Alphawave designs semiconductor technology specifically for data centers. This acquisition strengthens Qualcomm’s position in the AI space.
Back in May, Qualcomm announced plans for custom data center processors. These chips will use Nvidia technology to connect to artificial intelligence chips.
The company also unveiled accelerator boards and racks based on the new chips. Qualcomm said the products support mainstream AI frameworks and tools with advanced software support.
According to the company, these chips will lower the total cost of ownership for businesses. This could make them attractive to companies looking to deploy AI infrastructure.
Share development and valuation
Over the past 12 months, Qualcomm stock has gained 4.6%. The company currently has a market capitalization of $185.89 billion.
The stock trades at an earnings multiple of 16.39x. Revenue growth has been strong at 15.82% over the past year.
Qualcomm maintains a dividend yield of 2.18%. The company declared a quarterly cash dividend of $0.89 per share, payable on December 18, 2025.
Analysts have set price targets as high as $225. It represents potential upside from current levels.
The latest financial results show growth across several divisions. Automotive revenue increased 21% annually, while IoT grew 24%.
The telephone division increased by 7%. Demand for the Snapdragon 8 Elite platform drove this expansion.
The company recently underwent leadership changes. Dr. Jeremy Kolter joined the board and will serve on the board committee.
Patricia Grech was appointed Senior Vice President and Chief Accounting Officer. Neil Martin moved to lead Corporate Development.
Qualcomm also adopted Arm’s ninth-generation computing architecture for its latest PC and phone chips. This move can improve AI performance across the product line.
Benchmark maintained its buy rating with a price target of $200. The company highlighted growth opportunities in automotive, IoT and phone divisions.