Qualcomm (QCOM) stock returned 4.5% over the past year, trailing the S&P 500's 15.1%, and fiscal Q3 2026 revenue fell 4.0% from a year earlier. Qualcomm is entering the data center chip market with two custom chip customers, both global-scale hyperscalers, for which it already holds purchase orders and has started wafer manufacturing, with revenue expected from the December quarter. Management targets data center revenue of $5 billion in fiscal 2027 and $15 billion in fiscal 2029, along with $40 billion in fiscal 2029 sales outside phones; these are targets, not achieved results. Qualcomm trades at 19.7 times trailing earnings versus 23.0 for the S&P 500, while gross margin fell to 53.1% from 55.6%, which management says higher memory prices are pressuring in the short term.
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