Qualcomm (QCOM) Stock Surges on Potential Samsung Partnership


  • Qualcomm (QCOM) is surging on news that the company may be Samsung’s exclusive partner for its latest smartphone.
  • This move comes as other chipmakers are also surging on bullish Wall Street expectations.
  • Here’s what investors may want to know about the potential deal and what it may mean QCOM stock. 
QCOM stock - Qualcomm (QCOM) Stock Surges on Potential Samsung Partnership

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Among the top chip stocks garnering significant attention in today’s market is Qualcomm (NASDAQ:QCOM). Indeed, shares of QCOM stock are up more than 2% as of this writing amid broader interest in the chip sector heating up. High-performance chipmaker and rival Nvidia (NASDAQ:NVDA) is up more than 3% today as well.

However, Qualcomm’s move appears to be tied to news that the chipmaker may be looking at a partnership with Samsung to become the “exclusive chip provider” for the company’s upcoming Galaxy S25 smartphone.

This move would certainly enhance Qualcomm’s position as a top chipmaker for mobile devices. It would also replace much of the demand the company is seeing diminish from its days of being Apple’s (NASDAQ:AAPL) core iPhone chip partner.

Let’s dive more into this announcement and what it may mean for shareholders.

QCOM Stock Surges on Key Potential Partnership

Details of what could be a future partersnhip are still brewing, but it appears analysts and sources close to the matter believe this deal could be in place in short order.

Indeed, a number of analysts from Wedbush to Rosenblatt have put forward a rather rosy picture for the chip sector moving forward. These bullish narratives also appear to be spilling over to Qualcomm, although the company is more focused on chips for devices rather than chips directly powering artificial intelligence (AI) applications.

That said, with new generation smartphones expected to include a suite of AI technology, one could certainly view Qualcomm as a beneficiary of a new refresh cycle. And that appears to be exactly what the market is doing today, with QCOM stock moving to new all-time highs.

It will be interesting to dive more into the details of this deal (if it materializes) and gain more insight into how Qualcomm chips could be used to power AI-related applications. Regardless, it’s clear investors are taking an increasingly broad view of the AI trend — and looking to diversify beyond names like Nvidia to capture the most potential upside.

On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

Article printed from InvestorPlace Media, https://investorplace.com/2024/06/qualcomm-qcom-stock-surges-on-potential-samsung-partnership/.

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