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Prior to the Q1 FY26 earnings release, I downgraded Qualcomm, citing downside risk from a potential guidance pocket.

Unfortunately, I was right. Qualcomm guided Q2 revenue to $10.2B-$11.0B and adjusted EPS to $2.45-$2.65, below Street expectations of $11.12B and $2.89.

That said, not all downside catalysts have been flushed out, as Apple modem risk remains unresolved.

I have now upgraded to a cautious buy heading into the Q2 FY26 earnings release, as I see a cheap semiconductor name benefiting from renewed AI momentum.

I see AI200 in 2026 and AI250 in 2027 as positive catalysts, with potential new customer additions beyond HUMAIN highly welcomed by the market.

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I've been tuned in with QUALCOMM Incorporated ( QCOM ) since the October 2025 announcement of the AI200 and AI250 rack-scale systems and the HUMAIN partnership.

In fact, I've been bullish for a brief period of time.…