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Analysts expect Qualcomm Inc. (NASDAQ:QCOM) to report a fourth-quarter earnings beat, driven by sustained strength in its core 5G handset business. However, this expected solid performance is set against a backdrop of increasing questions from analysts and investors about the tangible timeline for monetizing the company’s significant investments in artificial intelligence. Check out QCOM’s stock price here. QCOM ‘Still Early' In The AI Race Louis Navellier, Chief Investment Officer at Navellier & Associates, affirmed this outlook, stating he expects the company to beat estimates. Despite this positive outlook for the core business, the market’s focus has shifted to the AI story, where analysts are urging patience. Navellier noted that while Qualcomm has announced an AI chip to compete with Nvidia Corp. (NASDAQ NVDA), it is “not out yet and they’re not monetizing it.” Additionally, Gene Munster of Deepwater Asset Management said that Qualcomm's announcement is a sign that it is "still early" in the AI race. Street Valuing Its AI Data Center Bet At ‘Zero’? This gap between AI-driven hype and current revenue is a central theme. According to CNBC, Stacy Rasgon, a senior analyst at Bernstein, characterized Qualcomm’s AI efforts in data centers and accelerators as “option value” that is not yet reflected in financial models. “Like what is it in my model? What is it in the street number? Zero,” Rasgon said. He argued that in a massive market, “a very small slice of a very big pie could be big enough” for Qualcomm to succeed. See Also: Qualcomm Beats Q2 Expectations On Earnings, Revenue: CEO Highlights Focus On ‘Critical Factors We Can Control’ QCOM’s Potential ‘Beyond’ The Handsets This long-term potential extends well “beyond the handset,” according to Daniel Newman, CEO of The Futurum Group. Newman highlighted the Nuvia acquisition, which forms the basis for its Snapdragon PC platform, as a key technology that “can be used for data center chips.” He also pointed to Qualcomm’s emerging role in “physical AI, robotics, humanoid,” and autonomy as major future growth drivers. What Does QCOM Expect In Q4? The expectation for a strong quarter is largely backed by the company’s own fourth-quarter guidance provided during its third-quarter earnings call. At that time, Qualcomm management forecasted total revenue between $10.3 billion and $11.1 billion and non-GAAP earnings per share from $2.75 to $2.95. This guidance was built on an anticipated QCT revenue between $9.0 billion and $9.6 billion and QTL revenue between $1.25 billion and $1.45 billion. Qualcomm Underperforms Nasdaq In 2025 QCOM ended 4.36% lower at $172.84 apiece and declined further by 0.42% on Tuesday. While it has advanced 12.50% year-to-date, the returns were lower than the broader Nasdaq 100 index, with a 21.26% gain. Over the year, QCOM was up just 4.18%. It maintains a stronger price trend over the long, short, and medium terms, with a moderate quality ranking. Additional performance details, as per Benzinga’s Edge Stock Rankings, are available here. While the S&P 500, Dow Jones, and Nasdaq 100 closed lower on Tuesday, the futures were mixed on Wednesday. Read Next: Qualcomm’s Entry Into The AI Race Splits Analysts: ‘Still Early,’ But The Stock’s Rally Is A Potential ‘Fade,’ Says BoFA Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo courtesy: Michael Vi via Shutterstock
