Why is Qualcomm stock rallying today?

Qualcomm's stock is soaring 4.8% in early trading, climbing to $164.20 after falling to $156.75 the previous day. This surge comes after the company announced a multiyear partnership with SpaceX, committing to provide cellular infrastructure for the Starlink Mobile terrestrial 5G network. Qualcomm views this deal as its largest 5G agreement yet, marking a shift in the company's growth strategy beyond smartphones.

Analysts have adjusted price targets accordingly, with Rosenblatt maintaining a Buy rating and lowering it to $205, Evercore ISI raising it to $165, and UBS holding a Neutral stance at $180. The Q4 FY2026 earnings report showed a revenue beat of $10.44 billion compared to estimates of $10.11 billion, with record automotive sales of $2.0 billion, up 89% year-over-year.

However, handset chip revenue dropped 26%, and near-term margin guidance was pessimistic. Despite the sector-wide recovery following a 5.5% drop in tech stocks, Qualcomm's stock is still below its 52-week high of $259.92, and fundamental concerns about handset demand and margins remain.