Qualcomm's Automotive Growth Boosts Exit Run Rate Amid Handset Woes

Qualcomm's stock price has fallen by 19% over the past three months, down to $162.18 or about 65% of its 52-week high.

The company faces several challenges: a declining handset industry, rising semiconductor input costs, and an Apple relationship that is expected to wind down sooner than previously guided.

However, management raised the automotive exit run rate for fiscal 2026 in July from $6 billion to approximately $7 billion, alongside a profit outlook that fell short of expectations.

This increase is based on strong growth in automotive revenue: 38% year-over-year in fiscal Q2 2026 and 61% in fiscal Q3 2026, with roughly 60% guided for fiscal Q4 2026.