We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
QCOM Launches Next-Gen Snapdragon SoCs: Will Agentic AI Drive Growth?
Read MoreHide Full Article
Key Takeaways
Qualcomm launched two flagship 2nm Snapdragon platforms designed for next-gen AI-powered smartphones.
Qualcomm's QCT handset revenue fell 20% as OEM cuts, memory pricing and supply constraints weighed.
HONOR, Motorola, OnePlus, OPPO, vivo and Xiaomi are expected to launch devices with the new Qualcomm chips.
Qualcomm Incorporated (QCOM - Free Report) is strengthening its position in the premium smartphone market with the launch of two new flagship mobile platforms called Snapdragon 8 Elite Extreme Gen 6 and Snapdragon 8 Elite Gen 6. Built on advanced 2nm technology, the new Snapdragon 8 Elite Extreme Gen 6 chip is Qualcomm’s most powerful mobile platform, and both the chips are designed to support AI-driven experiences. The new SoCs are engineered to bring faster on-device AI, gaming, imaging and connectivity capabilities to next-generation smartphones.
The push toward agentic AI is important here. Smartphone AI is gradually moving beyond conventional cloud-based features toward greater on-device processing. Higher con device computing capability can enable smartphones to handle more AI workloads directly on the device. The Snapdragon 8 Elite Extreme Gen 6 introduces Adreno Neural Fusion, which uses AI to enhance graphics and gaming experiences. The platform also adds AI-powered camera capabilities, including Advanced Professional Video (APV) support. Per Qualcomm, the Intelligent Pixel Control feature can improve scene understanding and image quality.
Qualcomm’s strategy of introducing two premium flagship chips instead of one gives OEMs better options for their unique requirements. Owing to its leading-edge features, the chips have already generated early interest from major companies. Leading smartphone brands, such as HONOR, Motorola, OnePlus, OPPO, vivo and Xiaomi, are expected to launch devices powered by the new Snapdragon platforms.
QCT handset revenues fell 20% year over year to $5.09 billion in the fiscal third quarter as major OEMs reduced purchases. It is to be noted that memory pricing, supply constraints and cyclicality in the handset market continue to weigh on QCOM’s smartphone business. The new chips are primarily targeted at premium and top-tier smartphones, so their impact on Qualcomm’s financial results will depend on continuous demand and adoption.
How Are Competitors Faring?
Qualcomm faces competition from STMicroelectronics N.V. (STM - Free Report) and Intel Corporation (INTC - Free Report) in the semiconductor space. STM has a strong presence in the smartphone semiconductor ecosystem. Its portfolio consists of sensing, connectivity, security and power-management technologies. STM provides components that support functions ranging from imaging and environmental sensing to wireless connectivity and secure mobile services. Recently, the company introduced the ST54M, a single-die secure mobile chip that is designed to support secure mobile services such as digital payments, identity credentials and access control.
Intel competes with Qualcomm in the broader semiconductor space. Intel is building a broader AI infrastructure platform spanning CPUs, ASICs, graphics, networking and advanced packaging as customers design workload-specific systems. Its AI PC and edge strategy is gaining traction as AI workloads move closer to devices and enterprise customers seek efficient local processing.
QCOM’s Price Performance, Valuation and Estimates
Qualcomm shares have gained 17% over the past year compared with the industry’s growth of 39.5%.
Image Source: Zacks Investment Research
Going by the price/earnings ratio, the company's shares currently trade at 19.76 forward earnings, higher than 13.96 for the industry.
Image Source: Zacks Investment Research
Earnings estimates for fiscal 2026 and 2027 have decreased over the past 60 days.
Image Source: Zacks Investment Research
Qualcomm currently has a Zacks Rank #5 (Strong Sell).
View the Zacks #1 Rank List
Image: Bigstock
QCOM Launches Next-Gen Snapdragon SoCs: Will Agentic AI Drive Growth?
Key Takeaways
Qualcomm Incorporated (QCOM - Free Report) is strengthening its position in the premium smartphone market with the launch of two new flagship mobile platforms called Snapdragon 8 Elite Extreme Gen 6 and Snapdragon 8 Elite Gen 6. Built on advanced 2nm technology, the new Snapdragon 8 Elite Extreme Gen 6 chip is Qualcomm’s most powerful mobile platform, and both the chips are designed to support AI-driven experiences. The new SoCs are engineered to bring faster on-device AI, gaming, imaging and connectivity capabilities to next-generation smartphones.
The push toward agentic AI is important here. Smartphone AI is gradually moving beyond conventional cloud-based features toward greater on-device processing. Higher con device computing capability can enable smartphones to handle more AI workloads directly on the device. The Snapdragon 8 Elite Extreme Gen 6 introduces Adreno Neural Fusion, which uses AI to enhance graphics and gaming experiences. The platform also adds AI-powered camera capabilities, including Advanced Professional Video (APV) support. Per Qualcomm, the Intelligent Pixel Control feature can improve scene understanding and image quality.
Qualcomm’s strategy of introducing two premium flagship chips instead of one gives OEMs better options for their unique requirements. Owing to its leading-edge features, the chips have already generated early interest from major companies. Leading smartphone brands, such as HONOR, Motorola, OnePlus, OPPO, vivo and Xiaomi, are expected to launch devices powered by the new Snapdragon platforms.
QCT handset revenues fell 20% year over year to $5.09 billion in the fiscal third quarter as major OEMs reduced purchases. It is to be noted that memory pricing, supply constraints and cyclicality in the handset market continue to weigh on QCOM’s smartphone business. The new chips are primarily targeted at premium and top-tier smartphones, so their impact on Qualcomm’s financial results will depend on continuous demand and adoption.
How Are Competitors Faring?
Qualcomm faces competition from STMicroelectronics N.V. (STM - Free Report) and Intel Corporation (INTC - Free Report) in the semiconductor space. STM has a strong presence in the smartphone semiconductor ecosystem. Its portfolio consists of sensing, connectivity, security and power-management technologies. STM provides components that support functions ranging from imaging and environmental sensing to wireless connectivity and secure mobile services. Recently, the company introduced the ST54M, a single-die secure mobile chip that is designed to support secure mobile services such as digital payments, identity credentials and access control.
Intel competes with Qualcomm in the broader semiconductor space. Intel is building a broader AI infrastructure platform spanning CPUs, ASICs, graphics, networking and advanced packaging as customers design workload-specific systems. Its AI PC and edge strategy is gaining traction as AI workloads move closer to devices and enterprise customers seek efficient local processing.
QCOM’s Price Performance, Valuation and Estimates
Qualcomm shares have gained 17% over the past year compared with the industry’s growth of 39.5%.
Image Source: Zacks Investment Research
Going by the price/earnings ratio, the company's shares currently trade at 19.76 forward earnings, higher than 13.96 for the industry.
Image Source: Zacks Investment Research
Earnings estimates for fiscal 2026 and 2027 have decreased over the past 60 days.
Image Source: Zacks Investment Research
Qualcomm currently has a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.