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QCOM vs. ASTS: Which Wireless Innovator is the Smarter Bet for 2026?
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Key Takeaways
QCOM is expanding in 5G, AI and automotive chips, aiming for steady growth across connected devices.
ASTS plans to launch 45-60 satellites by 2026 to build a space-based mobile network with global reach.
QCOM has more stable EPS estimates, while ASTS faces rising costs and falling profit expectations.
Qualcomm Incorporated (QCOM - Free Report) and AST SpaceMobile, Inc. (ASTS - Free Report) are key players in the broader wireless communications ecosystem. Qualcomm offers high-performance, low-power chip designs for mobile devices, PCs, XR (Extended Reality), automotive, wearables, robotics, connectivity and AI use cases. The company boasts a comprehensive intellectual property portfolio comprising 4G, 5G and other technologies. Its brands include Snapdragon systems-on-chip, FastConnect Wi-Fi and Bluetooth systems and Qualcomm-branded 4G, 5G and IOT equipment. The company is currently pursuing the integration of on-device generative AI into all of its product lines.
AST SpaceMobile is building the world’s first and only global cellular broadband network in space, accessible directly by standard smartphones (4G-LTE/5G devices) for commercial and government use, leveraging its extensive Intellectual Property and patent portfolio. The SpaceMobile service is provided by a constellation of high-powered, large phased-array satellites in low Earth orbit (LEO) using low-band and mid-band spectrums controlled by Mobile Network Operators (MNOs) in areas lacking terrestrial network coverage.
Let us delve a little deeper into the companies’ competitive dynamics to understand which of the two is relatively better placed in the industry.
The Case for Qualcomm
Qualcomm is well-positioned to meet its long-term revenue targets driven by solid 5G traction, greater visibility and a diversified revenue stream. The company is strengthening its foothold in the mobile chipsets market with innovative product launches. Leveraging processors with multi-core CPUs with cutting-edge features, amazing graphics and worldwide network connectivity, Qualcomm Snapdragon mobile platforms are fast with superb power efficiency. Smartphones and mobile devices built with Snapdragon mobile platforms enable immersive augmented reality and virtual reality experiences, brilliant camera capabilities, superior 4G LTE and 5G connectivity with state-of-the-art security solutions. It is currently foraying deeper into the realm of AI capabilities within the laptop and desktop business with the launch of the Snapdragon X chip for mid-range AI desktops and laptops.
The company is increasingly focusing on the seamless transition from a wireless communications firm for the mobile industry to a connected processor company for the intelligent edge. Qualcomm is witnessing healthy traction in EDGE networking, which helps transform connectivity in cars, business enterprises, homes, smart factories, next-generation PCs, wearables and tablets. The company is gaining traction in the vehicle-to-everything (V2X) communication systems market with the buyout of Autotalks. With seamless access to Autotalks’ comprehensive V2X expertise, Qualcomm has been able to offer an extensive suite of automotive-qualified global V2X solutions for installation in vehicles, as well as 2-wheelers and roadside infrastructure.
Despite efforts to ramp up its AI initiatives, Qualcomm has been facing tough competition from Intel in the AI PC market. Shift in the share among OEMs at the premium tier has reduced Qualcomm's near-term opportunity to sell integrated chipsets from the Snapdragon platform. The company is also facing stiff competition from Samsung’s Exynos processors in the premium smartphone market, while MediaTek is gaining market share in the mid-range and budget smartphone market. Qualcomm’s extensive operations in China are further likely to be significantly affected by the U.S.-China trade hostilities.
The Case for AST SpaceMobile
AST SpaceMobile is slated to launch BlueBird 6, the first of its next-generation satellites, next week. Featuring the largest commercial phased array in low Earth orbit (LEO) at nearly 2,400 square feet, the satellite will reportedly mark a 3.5x increase in size over its predecessors with 10x data capacity. AST SpaceMobile is reportedly on track to deploy about 45-60 satellites in orbit by the end of 2026. The company’s first five commercial satellites (dubbed BlueBird) in LEO marked a key advancement in developing a space-based mobile network infrastructure. These satellites feature commercial communications arrays spanning 693 square feet, offering non-continuous service across the United States using more than 5,600 cells within the premium low-band spectrum. The company boasts a diverse portfolio of more than 3,800 patents and patent-pending claims worldwide for the direct-to-cell satellite ecosystem from space to Earth.
The SpaceMobile service is compatible with all major brands available in the market and connects directly to everyday mobile phones. It delivers broadband connectivity from space to unmodified mobile devices, providing a service to fill cellular coverage gaps in a differentiated approach compared to other space-based communication services. AST SpaceMobile has partnered with leading carriers, such as AT&T Inc. (T - Free Report) and Verizon Communications Inc. (VZ - Free Report) , to tap into a pre-existing pool of cell customers and raise funds to help build a worldwide satellite network. This has enhanced cellular coverage in the United States, essentially eliminating dead zones and empowering remote areas of the country with space-based connectivity.
However, unfavorable macroeconomic conditions, including rising inflation, higher interest rates, capital market volatility, tariff imposition and geopolitical conflicts, are negatively impacting the company’s operations. These have led to continued fluctuations in satellite material prices, resulting in increased capital costs and pressure on the company’s financial performance. In addition, AST SpaceMobile faces severe competition from existing and new industry leaders like SpaceX’s Starlink and Globalstar, which are developing satellite communications technology using LEO constellations. To combat such competitive pressure, ASTS has to continuously customize its network offerings, enhance the cost-effectiveness of its products and services and boost the satellite data networks, which increases operating costs and reduces margins.
How Do Zacks Estimates Compare for QCOM & ASTS?
The Zacks Consensus Estimate for Qualcomm’s fiscal 2026 sales indicates year-over-year growth of 3.2%, while that for EPS suggests an improvement of 1%. The EPS estimates have been trending northward (up 2.1%) over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AST SpaceMobile’s 2025 sales implies year-over-year growth of 1142%, while that of EPS suggests a decline of 60.6%. The EPS estimates have been trending southward (down 8.2%) over the past 60 days.
Image Source: Zacks Investment Research
Price Performance & Valuation of QCOM & ASTS
Over the past year, Qualcomm has gained 10.2% compared with the industry’s growth of 72.6%. AST SpaceMobile has surged 209.2% over the same period.
Image Source: Zacks Investment Research
Qualcomm looks more attractive than AST SpaceMobile from a valuation standpoint. Going by the price/sales ratio, Qualcomm’s shares currently trade at 4.13 forward sales, significantly lower than AST SpaceMobile’s 107.22.
Both companies expect their sales to improve in 2025. However, ASTS’ bottom line is expected to decline significantly. In terms of price performance, AST SpaceMobile has outperformed Qualcomm, but is trading expensively compared to the latter. Qualcomm has shown a relatively steady revenue growth for years, while AST SpaceMobile has been facing a bumpy road. Consequently, QCOM seems to be a better investment option for 2026.
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QCOM vs. ASTS: Which Wireless Innovator is the Smarter Bet for 2026?
Key Takeaways
Qualcomm Incorporated (QCOM - Free Report) and AST SpaceMobile, Inc. (ASTS - Free Report) are key players in the broader wireless communications ecosystem. Qualcomm offers high-performance, low-power chip designs for mobile devices, PCs, XR (Extended Reality), automotive, wearables, robotics, connectivity and AI use cases. The company boasts a comprehensive intellectual property portfolio comprising 4G, 5G and other technologies. Its brands include Snapdragon systems-on-chip, FastConnect Wi-Fi and Bluetooth systems and Qualcomm-branded 4G, 5G and IOT equipment. The company is currently pursuing the integration of on-device generative AI into all of its product lines.
AST SpaceMobile is building the world’s first and only global cellular broadband network in space, accessible directly by standard smartphones (4G-LTE/5G devices) for commercial and government use, leveraging its extensive Intellectual Property and patent portfolio. The SpaceMobile service is provided by a constellation of high-powered, large phased-array satellites in low Earth orbit (LEO) using low-band and mid-band spectrums controlled by Mobile Network Operators (MNOs) in areas lacking terrestrial network coverage.
Let us delve a little deeper into the companies’ competitive dynamics to understand which of the two is relatively better placed in the industry.
The Case for Qualcomm
Qualcomm is well-positioned to meet its long-term revenue targets driven by solid 5G traction, greater visibility and a diversified revenue stream. The company is strengthening its foothold in the mobile chipsets market with innovative product launches. Leveraging processors with multi-core CPUs with cutting-edge features, amazing graphics and worldwide network connectivity, Qualcomm Snapdragon mobile platforms are fast with superb power efficiency. Smartphones and mobile devices built with Snapdragon mobile platforms enable immersive augmented reality and virtual reality experiences, brilliant camera capabilities, superior 4G LTE and 5G connectivity with state-of-the-art security solutions. It is currently foraying deeper into the realm of AI capabilities within the laptop and desktop business with the launch of the Snapdragon X chip for mid-range AI desktops and laptops.
The company is increasingly focusing on the seamless transition from a wireless communications firm for the mobile industry to a connected processor company for the intelligent edge. Qualcomm is witnessing healthy traction in EDGE networking, which helps transform connectivity in cars, business enterprises, homes, smart factories, next-generation PCs, wearables and tablets. The company is gaining traction in the vehicle-to-everything (V2X) communication systems market with the buyout of Autotalks. With seamless access to Autotalks’ comprehensive V2X expertise, Qualcomm has been able to offer an extensive suite of automotive-qualified global V2X solutions for installation in vehicles, as well as 2-wheelers and roadside infrastructure.
Despite efforts to ramp up its AI initiatives, Qualcomm has been facing tough competition from Intel in the AI PC market. Shift in the share among OEMs at the premium tier has reduced Qualcomm's near-term opportunity to sell integrated chipsets from the Snapdragon platform. The company is also facing stiff competition from Samsung’s Exynos processors in the premium smartphone market, while MediaTek is gaining market share in the mid-range and budget smartphone market. Qualcomm’s extensive operations in China are further likely to be significantly affected by the U.S.-China trade hostilities.
The Case for AST SpaceMobile
AST SpaceMobile is slated to launch BlueBird 6, the first of its next-generation satellites, next week. Featuring the largest commercial phased array in low Earth orbit (LEO) at nearly 2,400 square feet, the satellite will reportedly mark a 3.5x increase in size over its predecessors with 10x data capacity. AST SpaceMobile is reportedly on track to deploy about 45-60 satellites in orbit by the end of 2026. The company’s first five commercial satellites (dubbed BlueBird) in LEO marked a key advancement in developing a space-based mobile network infrastructure. These satellites feature commercial communications arrays spanning 693 square feet, offering non-continuous service across the United States using more than 5,600 cells within the premium low-band spectrum. The company boasts a diverse portfolio of more than 3,800 patents and patent-pending claims worldwide for the direct-to-cell satellite ecosystem from space to Earth.
The SpaceMobile service is compatible with all major brands available in the market and connects directly to everyday mobile phones. It delivers broadband connectivity from space to unmodified mobile devices, providing a service to fill cellular coverage gaps in a differentiated approach compared to other space-based communication services. AST SpaceMobile has partnered with leading carriers, such as AT&T Inc. (T - Free Report) and Verizon Communications Inc. (VZ - Free Report) , to tap into a pre-existing pool of cell customers and raise funds to help build a worldwide satellite network. This has enhanced cellular coverage in the United States, essentially eliminating dead zones and empowering remote areas of the country with space-based connectivity.
However, unfavorable macroeconomic conditions, including rising inflation, higher interest rates, capital market volatility, tariff imposition and geopolitical conflicts, are negatively impacting the company’s operations. These have led to continued fluctuations in satellite material prices, resulting in increased capital costs and pressure on the company’s financial performance. In addition, AST SpaceMobile faces severe competition from existing and new industry leaders like SpaceX’s Starlink and Globalstar, which are developing satellite communications technology using LEO constellations. To combat such competitive pressure, ASTS has to continuously customize its network offerings, enhance the cost-effectiveness of its products and services and boost the satellite data networks, which increases operating costs and reduces margins.
How Do Zacks Estimates Compare for QCOM & ASTS?
The Zacks Consensus Estimate for Qualcomm’s fiscal 2026 sales indicates year-over-year growth of 3.2%, while that for EPS suggests an improvement of 1%. The EPS estimates have been trending northward (up 2.1%) over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AST SpaceMobile’s 2025 sales implies year-over-year growth of 1142%, while that of EPS suggests a decline of 60.6%. The EPS estimates have been trending southward (down 8.2%) over the past 60 days.
Image Source: Zacks Investment Research
Price Performance & Valuation of QCOM & ASTS
Over the past year, Qualcomm has gained 10.2% compared with the industry’s growth of 72.6%. AST SpaceMobile has surged 209.2% over the same period.
Image Source: Zacks Investment Research
Qualcomm looks more attractive than AST SpaceMobile from a valuation standpoint. Going by the price/sales ratio, Qualcomm’s shares currently trade at 4.13 forward sales, significantly lower than AST SpaceMobile’s 107.22.
Image Source: Zacks Investment Research
QCOM or ASTS: Which is a Better Pick?
Both Qualcomm and AST SpaceMobile carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Both companies expect their sales to improve in 2025. However, ASTS’ bottom line is expected to decline significantly. In terms of price performance, AST SpaceMobile has outperformed Qualcomm, but is trading expensively compared to the latter. Qualcomm has shown a relatively steady revenue growth for years, while AST SpaceMobile has been facing a bumpy road. Consequently, QCOM seems to be a better investment option for 2026.