• In late June 2026, QUALCOMM was removed from multiple Russell growth and defensive indices while unveiling its Dragonfly AI data center platform, expanded AI partnerships, and new deepfake detection capabilities via a partnership with Scam.ai at Computex.
• Together with an expanded collaboration with Hugging Face and a planned acquisition of Modular, these moves show QUALCOMM pushing to become an end‑to‑end AI infrastructure and on‑device intelligence provider rather than a primarily handset‑focused chip designer.
• We’ll now examine how QUALCOMM’s accelerated Dragonfly AI data center push and deeper Hugging Face partnership influence its existing investment narrative.

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QUALCOMM Investment Narrative Recap

To own QUALCOMM today, you need to believe its shift from handset dependence toward AI infrastructure, data centers, and edge devices can offset handset cyclicality and customer concentration. The key near term catalyst remains execution in AI data center and on device AI platforms, while the biggest risk is that these newer businesses fail to scale profitably. The recent Russell index removals are largely mechanical and do not materially alter that core risk reward equation in the short term.

Among the recent announcements, the expanded collaboration with Hugging Face is most relevant. It ties Dragonfly data center hardware directly to a large developer base and a unified edge to cloud AI workflow, which is central to QUALCOMM’s push into inference and agentic AI. For investors watching the AI data center catalyst, this partnership helps clarify how QUALCOMM aims to turn its new silicon portfolio into real workloads and potential revenue over time.

Yet while AI momentum is exciting, investors should also understand how rising competition and customer insourcing could pressure QUALCOMM’s core handset margins and...

QUALCOMM's narrative projects $48.8 billion revenue and $11.0 billion earnings by 2029. This requires 3.1% yearly revenue growth and about a $1.1 billion earnings increase from $9.9 billion today.

Uncover how QUALCOMM's forecasts yield a $168.50 fair value, a 10% downside to its current price.

Exploring Other Perspectives

Some of the most optimistic analysts were penciling in about US$49.3 billion of revenue and US$12.4 billion of earnings by 2029, which is far more upbeat than consensus. When you compare that to concerns about handset insourcing and licensing pressure, you can see how views on QUALCOMM split widely. With Dragonfly and new AI deals now in play, it is worth asking whether those bullish or cautious narratives still fit, or if the story is starting to shift.

Explore 13 other fair value estimates on QUALCOMM - why the stock might be worth as much as 61% more than the current price!

The Verdict Is Yours

Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

• A great starting point for your QUALCOMM research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free QUALCOMM research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate QUALCOMM's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.