The article compares IBM and Qualcomm as both expand into AI infrastructure. IBM benefits from demand for hybrid cloud and AI, but faces competition from AWS and Microsoft Azure, pricing pressure that is eroding margins, and the risk that Anthropic's Claude Code could reduce enterprises' reliance on legacy COBOL service providers such as IBM. Qualcomm relies on its Snapdragon portfolio and is expanding into AI laptops and desktops with the Snapdragon X, as well as vehicle-to-everything (V2X) systems after its Autotalks acquisition, aiming to move beyond the slowing smartphone market.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
IBMQualcommartificial intelligencesemiconductors
Open a keyword to see other news on the same topic.
Related news
- Qualcomm Stock Has an AI Opportunity Most Nvidia Investors May Be Overlooking
Qualcomm reported fiscal third-quarter revenue of 9.95 billion USD, above the 9.67 billion USD estimate, though non-GAAP EPS of 2.21 USD slightly missed the 2.22 USD estimate. Handset revenue fell 20%, while automotive revenue rose 61% to 1.59 billion USD. Management targets 40 billion USD in non-handset revenue by fiscal 2029, including more than 15 billion USD from data centers, supported by two hyperscaler custom silicon deals expected to start generating revenue in the December quarter. The author sets a 12-month price target of 218.57 USD with a Buy rating, versus a current price of 180.61 USD, with bull and bear cases at 237.99 USD and 185.64 USD. Risks include a 41.13% drop in operating income from rising memory and wafer costs, and expected Apple product revenue declines of about 50% from the September quarter to the December quarter. Qualcomm trades at 34 times earnings, compared with 42 for NVIDIA.
- Custom System-on-Chip Application-Specific Integrated Circuit (ASIC) Market Global Report 2026 | Capitalize on AI and 5G Demand with NVIDIA, Qualcomm, Broadcom and TSMC
The custom system-on-chip ASIC market is estimated to grow from $24.24 billion in 2025 to $26.42 billion in 2026, a 9.0% CAGR, and reach $37.62 billion by 2030 at a 9.2% CAGR. Growth is expected to be supported by demand for AI-optimized chips, high-performance computing and expanding 5G networks, along with design automation platforms such as InCore Semiconductors’ SoC Generator. In December 2025, Qualcomm Incorporated acquired Alphawave IP Group for $2.4 billion to strengthen its networking and data center chip capabilities. Asia-Pacific led the market in 2025, while North America is expected to be the fastest-growing region over the forecast period.
- How Investors May Respond To Qualcomm Stock Earnings Outlook Concerns
QUALCOMM affirmed a quarterly cash dividend of US$0.92 per share for December 2026, while diluted EPS fell 16.67% year on year, with a P/E of 20.00, a dividend yield of 2.03% and weaker operating margins. The company is cutting its global workforce and faces pressure in smartphones and Apple-related revenue, while committing capital to data center chips, robotics and AI partnerships with Amazon and Apple. The article notes that two hyperscaler customers have production underway, with revenue targets for fiscal 2027 and 2029. Under the current analyst narrative, revenue is projected at US$60.0b and earnings at US$11.5b by 2029, based on 10.8% yearly revenue growth, and fair value implies about 10% potential upside to the current price. The most optimistic analysts forecast US$66.9b of revenue and US$11.8b of earnings by 2029.
- Arm Just Dropped 19% in a Month. Is It Time to Sell, or Load Up?
Arm Holdings (ARM) shares fell 19.8% over the past month through Tuesday's close, while the Nasdaq 100 slipped 0.5%, though the stock is still up 102% in 2026. A 17% jump on Sept. 21, driven by hopes for Meta's Muse AI agent, reversed after reports that SoftBank's Arm stake backs a $25 billion loan facility and after AI safety fears following a breach. Further declines in October came amid chip-sector selloffs, and on Oct. 13 a Delaware jury found Arm breached its license with Qualcomm, awarding just $2 in total damages. The bigger issue is that Judge Maryellen Noreika has yet to rule on whether Qualcomm can stop paying royalties for five years. Arm reports fiscal second-quarter results on Nov. 4 against revenue guidance of $1.38 billion.
- Qualcomm Vs. Intel: The Market is Refuting Both AI Rebrand Attempts
Intel and Qualcomm both used their summer earnings reports to pitch AI, but their shares have cooled since. Intel's revenue rose 25.4% to $16.13 billion, with Data Center and AI up 59% on Xeon demand; the stock closed at $102.81, after a 178.62% year-to-date gain and an 8.61% drop this week. Qualcomm's revenue fell 4.0% to $9.95 billion as handsets dropped 20%, while automotive rose 61% to a record $1.59 billion; management raised its fiscal 2029 non-handset target to $40 billion, including $15 billion from data center. The author leans toward Intel because its AI revenue is already shipping, but warns that its foundry lost $2.1 billion on just $293 million of external revenue.
- QCOM Stock Earnings Preview: What to Expect From Qualcomm’s Q4 Report
Related markets
Latest news
- Paying the price for relying on the West, US allies accelerate dialogue with Iran
Saudi Arabia held its first direct talks with Iran as Defence Minister Prince Khalid bin Salman visited Tehran on 26 October with officials from Pakistan and Turkey, and both sides agreed to keep dialogue going. Observers welcomed the move but doubted it could prevent further Iranian strikes if the conflict with the US resumes. Ali Alfoneh said these countries were “unable” to stop Israel and the US from attacking Iran after the US midterm elections, while Tehran has reason to signal fierce retaliation against Gulf energy infrastructure. Qatar and Oman called for a security framework built through negotiation, including a non-aggression pact, and Omani Foreign Minister Badr Al-Busaidi said Gulf states are paying a long-term political price for relying on the West. Barbara Slavin expects the US to restructure its base system in GCC countries but not fully withdraw.
- USD 5.6 billion leaves Binance wallets within minutes: World's largest crypto exchange suspected of hack, possibly the biggest theft in history
Shortly after midnight on October 30 (Vietnam time), billions of dollars in digital assets moved from Binance's hot wallets to unknown addresses, with on-chain estimates exceeding USD 5.6 billion, though figures vary widely between sources and no official confirmation has been issued. Etherscan data show the attacker exploited EIP-7702, an Ethereum feature that lets a regular wallet delegate control to a smart contract, to drain the Binance 14 wallet, and the source of the authorizing signature remains unclear. Binance said user funds are safe, temporarily suspended withdrawals on several networks and is investigating. Tether, Circle and Ripple froze funds, and Binance confirmed a verified total of USD 2.54 billion frozen, though ETH cannot be frozen. Binance's SAFU fund holds 15,000 BTC, about USD 1.19 billion, and in 2019 the exchange fully covered losses from roughly 7,000 BTC stolen from a hot wallet.
- Tesla-SpaceX Merger 'Does Make Strategic Sense,' Analyst Says — But SpaceX Needs Nearly 2x The Growth
Morningstar says a Tesla-SpaceX merger 'does make strategic sense,' but SpaceX would need growth nearly double what the firm currently models to justify its share price. Morningstar raised its SpaceX fair value estimate to $70 from $62, yet that still implies about 51% downside from current levels, even though its forecasts already assume revenue of $41 billion in 2026 and $228 billion by 2030. The Terafab chip project could cost tens of billions of dollars through early 2028 and more than $100 billion longer term, but the funding split between the two companies remains unresolved. Musk said his conflicts keep him out of the independent committees' talks and warned against treating a deal as certain.
- Asian trading is mixed as worries about AI-related issues grow
Asian shares traded mixed early Friday as concerns about the future of artificial intelligence grew after Alphabet's stock drop weighed on U.S. markets. Japan's Nikkei 225 fell 2.6% to 62,960.60, while South Korea's Kospi declined 5.4% to 5,618.76 as SK Hynix and Samsung Electronics both slipped. The Bank of Japan is closing a two-day policy meeting, but most analysts expect no action after raising its benchmark rate to 1.25% last month, and the U.S. has pressed Japan to raise rates over the weakening yen. On Wall Street on Thursday, the S&P 500 fell 0.3% to 7,720.39 and the Nasdaq composite tumbled 1.4% to 26,184.72, as Alphabet's Class A shares dropped 12.6% in their worst day since trading began more than 20 years ago. The 10-year Treasury yield fell to 4.94% from 5.05%, while U.S. crude gained 2.80% to $104.86 a barrel.
- Notable proposal on electric cars in Vietnam
A draft national technical regulation on safety and environmental protection for cars would require pure battery electric vehicles (BEV or PEV) to be fitted with an AVAS sound alert system for pedestrians and cyclists. AVAS must activate automatically when the vehicle travels below 20 km/h or reverses, is on by default at start-up, and may have a switch that drivers can use to turn it on or off. The sound must be continuous, change with speed, and must not resemble horns, bells, emergency alarms, musical tones, or animal sounds; for M1 cars fitted with AVAS, it may only operate when running fully on electricity. According to the Vietnam Register, pure electric cars can move slowly without the engine noise people nearby expect, so the requirement aims to improve safety for pedestrians, motorcyclists and cyclists.
- Global gold falls near $4,000 mark
Spot gold fell 1% to $4,026.12 an ounce in the 29 October session after US inflation data showed price pressures remained high, reinforcing expectations that the Fed will raise interest rates later this year. The PCE price index rose 0.5% in September after a 0.3% gain in August, as consumers paid more for gasoline and other goods. According to CME Group's FedWatch tool, traders are pricing in about an 83% chance of a Fed rate hike in December. Higher rates raise the opportunity cost of holding non-yielding gold, and David Meger of High Ridge Futures said persistent inflation above the Fed's target is the main pressure on the market. December gold futures slipped 0.3% to $4,037.60, while silver fell 2.7% to $52.54, platinum dropped 3.7% to $1,486.47 and palladium lost 0.7% to $1,003.58.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.