Qualcomm (QCOM) Extends Rally to Nine Days — Is the Bottom In?

Key Takeaways

• QCOM shares have climbed for nine consecutive trading days — the longest rally since November 2023 — yet the stock remains down 20% year-to-date.
• The chipmaker suffered its steepest quarterly decline in over two decades during Q1 2026, falling 25%.
• A global shortage of DRAM chips is constraining smartphone manufacturers, especially in China, hampering device production.
• Wall Street analysts have issued at least eight downgrades on Qualcomm this year, pushing consensus ratings to their lowest point since 2008.
• The company is set to announce Q2 results on April 29, though recent earnings history shows only two positive post-earnings reactions in the past 15 quarters.

Qualcomm (QCOM) shares have posted gains for nine consecutive trading sessions — the company’s longest winning run since November 2023 — adding roughly 11% during this period. Yet when you zoom out, the broader picture remains challenging. The chipmaker’s shares are still down approximately 20% for 2026, and earlier this month they hit their lowest level since 2023.

QUALCOMM Incorporated, QCOM

The 25% decline during Q1 2026 marked Qualcomm’s steepest quarterly loss since 2002. This historical context suggests the recent rally may be more of a technical rebound than a fundamental reversal.

The primary challenge facing the company stems from memory chip availability. Explosive demand for DRAM components driven by AI infrastructure expansion has left consumer electronics manufacturers facing supply shortages and elevated pricing. A spot price benchmark for DRAM has surged nearly 500% since late August. This dynamic creates significant obstacles for Qualcomm, whose business depends heavily on smartphone manufacturers.

Wall Street Sentiment Deteriorates

Qualcomm has faced at least eight analyst downgrades throughout 2026. Among the 45 analysts tracking the stock, just 17 maintain buy recommendations while three have assigned sell ratings — representing the weakest analyst consensus in at least 16 years. This stands in sharp contrast to semiconductor peers like Nvidia, Broadcom, and Micron, where more than 90% of analysts maintain bullish ratings.

Earnings projections have also moved lower. Analysts currently forecast EPS of $2.57 for the upcoming quarter — representing a 9.8% year-over-year decline. Full fiscal year revenue estimates stand at $43.39 billion, reflecting a 1.7% decrease. Zacks currently assigns the stock its lowest rating of #5 Strong Sell.

Diversification Efforts Require More Time

CEO Cristiano Amon has worked to reposition Qualcomm beyond its smartphone chip heritage, expanding into automotive, personal computing, and data center markets. However, these emerging revenue streams haven’t yet reached the scale needed to compensate for softness in the handset business, particularly as Apple continues reducing its reliance on Qualcomm modem technology in iPhones.

Shares have declined approximately 40% from their June 2024 all-time high. The stock currently trades at roughly 12 times forward earnings estimates — below its 10-year historical average of approximately 15 times. For comparison, the broader semiconductor sector trades at around 22 times forward earnings.

Qualcomm is scheduled to report Q2 financial results on April 29. Following its February earnings announcement, shares declined 8.5% after management provided guidance below Wall Street expectations.

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