Qualcomm surges on AI chip deal ahead of flagship event

Qualcomm Inc shares jumped 8.4% in mid-day trading on Monday, recovering from its largest single-session drop in three months.

The rally followed a joint announcement by Lumentum, Qualcomm Technologies, and Corning at ECOC 2026 in Málaga, Spain. The three companies demonstrated a massively parallel optical die-to-die interconnect architecture designed to deliver high-bandwidth, low-power, and low-latency connectivity for AI scale-up systems. The technology places Qualcomm's interface IP at the center of next-generation data center infrastructure.

The stock gained additional support ahead of Qualcomm's annual Snapdragon Summit, set to take place from September 22 to 24 in Maui, Hawaii. The company is expected to introduce two next-generation 2nm flagship processors, the Snapdragon 8 Elite Gen 6 and a higher-end Pro variant. Updates on the company's expansion into agentic AI computing are also anticipated.

StoneX analyst Cody Acree maintains a Buy rating on Qualcomm with a $270 price target, citing expanding data center leverage. The Wall Street consensus stands at a Moderate Buy with an average price target above $200.

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