Qualcomm's stock has been on a wild ride in 2026, with a rollercoaster-like performance that has left investors wondering if the company is truly on a tear. The stock bottomed near $122 in April, only to surge to an all-time high of roughly $260 in May, before sliding about 35% into late July. However, the recent story is a genuine re-acceleration, with the stock rebounding from an August low near $148 and jumping again on September 8 after unveiling its custom AI chip collaboration with Amazon.
Qualcomm's Move Beyond Smartphones
The catalyst reshaping Qualcomm's story is its move beyond smartphones, and the recent collaboration with Amazon is a significant step in this direction. Qualcomm announced a multi-generational collaboration with Amazon to supply custom silicon for Amazon Web Services' AI data centers, with the work centered on AI inference and extending to optical networking products. This agreement builds on the engagement Qualcomm first disclosed earlier in the year, and it has the potential to be a transformative diversification of its revenue.
Other Growth Engines Firing at Once
Several other growth engines are firing at once, driving optimism about revenue beyond its maturing smartphone business. Qualcomm's IoT segment, which spans AI PCs, smart glasses, and industrial devices, brought in $1.7 billion in the April quarter, up 9% year over year. The automotive business has been the standout, growing 61% in the June quarter. A reported partnership with OpenAI and MediaTek to develop smartphone processing chips (with mass production targeted for 2028) also sent shares up double digits earlier in the year.
ETFs Holding the Most Qualcomm
Most investors who own Qualcomm don't hold it directly - they own it inside semiconductor and technology ETFs. Here are the funds with the most meaningful QCOM exposure:
SMH (VanEck Vectors Semiconductor ETF) - 4.06% weight, its 11th-largest position
SOXX (Soxx Semiconductor ETF) - 2.98% weight, its 16th-largest position
XSD (SPDR S&P Semiconductor ETF) - 2.46% weight, close to that of far smaller chipmakers
Why Qualcomm Stock is Rising
Qualcomm's move into AI data centers, including the multi-generational Amazon/AWS custom silicon collaboration announced September 8, 2026, plus a growing IoT/AI-PC segment, a fast-ramping automotive business, and a reported OpenAI/MediaTek chip partnership have driven optimism about revenue beyond its maturing smartphone business.
What's the Risk with Qualcomm?
However, the largest revenue source is still smartphone chips, a mature and cyclical market, plus the long-term risk that Apple replaces Qualcomm modems with its own. Recent results underline the pressure: June-quarter revenue fell 4% and non-GAAP EPS dropped 20% year over year. The bull case rests on auto, IoT, and data center growth offsetting that.
Investing in Qualcomm through an ETF
Semiconductor ETFs like FTXL, SMH, SOXX, and XSD all hold QCOM; FTXL offers the highest concentration. Broad tech ETFs like VGT and XLK also hold it at smaller weights, while PSI currently does not hold the stock. Investors who specifically want Qualcomm exposure should check the current basket rather than assume it is there.
Conclusion
Qualcomm's comeback has reignited the bull case for a stock long dismissed as a smartphone-chip has-been. For ETF investors, the exposure that matters most comes down to fund choice: FTXL for the heaviest QCOM weight (~6.43%), SMH for the mega-cap-led AI-chip trade with a still-meaningful ~4.06% Qualcomm position, and SOXX for balanced sector exposure (~2.98%). Whether Qualcomm's comeback has legs depends on whether its AI diversification can outrun the handset trough - but either way, most investors already own a piece of the story.
