By Kit Norton
There's no stopping Qualcomm right now as investors send the chip stock towards a new all-time closing high on Monday.
With artificial intelligence driving up demand for chip processors, semiconductor stocks have been rallying at historic levels. Qualcomm, for one, isn't slowing down.
The stock surged 8.7% to $238.46 on Monday, making it one of the top S&P 500 performers for the session and on pace to hit a fresh all-time closing high, according to Dow Jones Market Data. It would also be the first new record closing high since June 18, 2024 when Qualcomm closed at $227.09.
Along with the general market sentiment around chip stocks -- with the PHLX Semiconductor Index, a sector benchmark also referred to as the Philadelphia Semiconductor Index or SOX, recently experiencing its largest 25-day rally since the 2000 dot-com bubble -- Intel news could be boosting Qualcomm.
Intel declined 0.3% after closing 14% higher on Friday following a report that the chip maker reached a preliminary agreement to manufacture some chips for Apple devices, signaling that demand is not drying up any time soon.
Among other chip stocks, Arm Holdings fell 2.3% and Advanced Micro Devices edged 0.4% lower. Nvidia gained 1.3%.
Long viewed primarily through the lens of smartphones, Qualcomm is currently demonstrating broader earnings power across automotive, the internet of things, and AI-driven applications.
With multiple end markets stabilizing and new revenue streams gaining traction, the narrative is shifting from cyclical recovery to structural expansion, positioning Qualcomm as a more durable and diversified growth story than the market has historically priced in.
The semiconductor stock is currently on track to notch its fifth consecutive trading session closing higher, logging a 40% gain in that span. That's Qualcomm stock's best five-day stretch since late April 2019, according to Dow Jones Market Data.
At the end of April, Qualcomm reported solid fiscal second-quarter earnings and revenue results. However, investors were much more taken with signs that the company's pivot into data-center processors is gaining traction and hopes the smartphone market could improve.
Qualcomm CEO Cristiano Amon told analysts on the conference call that initial shipments of a custom data-center chip are expected to begin in the December quarter with a hyperscaler, or large cloud-computing company. The name of the client wasn't disclosed, with Qualcomm saying it would reveal more details at its investor day in June.
"It is a large hyperscaler and we're really thinking about a multi-generation engagement, but I think that's what we can say at this point," Amon said.
Overall, Qualcomm shares have rallied 30% so far in May, part of a 37% gain so far this year. Over the past 12 months, the stock has advanced 54%.
Of the more than 40 analysts polled by FactSet, the average Qualcomm stock rating is Hold with a price target of $176.72. Shares are currently 34% above that average price target.
Write to Kit Norton at kit.norton@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
May 11, 2026 11:35 ET (15:35 GMT)
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