Chip stocks fell sharply in July 2026.
Qualcomm is a potential bargain.
It has strong AI smartphone and data center prospects.
What happened
Semiconductor stocks experienced a severe downturn in July 2026, after soaring in the second quarter, creating what the article calls a second-chance opportunity for investors. Qualcomm is highlighted as an overlooked stock that looks like a great buy.
Why it matters
Qualcomm stands to benefit from AI demand in two ways: high-end smartphone chipsets (like the Snapdragon line) and data center AI chips. Management guided for at least $15 billion in data center-related revenue by 2029, with a deal to supply CPUs to Meta for AI agents starting in the second half of 2028.
What to watch
The stock trades at 15.3 times forward earnings, and management plans price increases starting in September due to higher supply costs. Near-term headwinds include rising memory prices and Apple dropping Qualcomm's baseband chips.
Ask the AI about this article →
The article frames Qualcomm's pullback as a second chance for investors who missed its earlier run. The stock trades at 15.3 times forward earnings, which the author suggests is attractive given the company's AI-driven growth prospects. Qualcomm is diversifying beyond its traditional smartphone business into data centers, aiming for at least $15 billion in revenue there by 2029. Its existing data center connectivity chip shipments and custom silicon deals with two hyperscalers support this target. The deal to supply CPUs to Meta for AI agents starting in the second half of 2028 adds further credibility. However, near-term headwinds like rising memory prices and Apple's decision to drop Qualcomm's baseband chips could slow revenue growth this year and next. The author expects revenue to reaccelerate later in the decade as data center sales ramp up. This analysis is based solely on the article's content, which notes the author's positions in Apple, Meta, and Qualcomm.
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