Qualcomm shares are up 11% as of midday Friday, while Skyworks Solutions has risen by 9%, and Corvo is up 7%. There’s a general upswing in mobile and RF chip stocks, but the focus seems to be on smaller, standout companies. Investors appear to be favoring specific winners rather than the more diversified semiconductor giants.
Interestingly, Broadcom, which has historically performed well in the chip sector, is pretty much flat today. It appears that investors are opting for companies that specialize in mobile and connectivity rather than larger, diversified players—a shift from the trend we’ve seen for years.
Qualcomm’s stock surge has been impressive, with a 76% increase over the past month and 40% since the beginning of the year, closing at $213.41 on Thursday, bringing its market cap to around $251 billion.
Qualcomm’s Strong Performance in Data Center and Automotive
Qualcomm is handling quite a challenge today. Its stock performance underscores momentum in several areas, including Snapdragon Mobile SoCs, Snapdragon Automotive Digital Chassis, and AI at the Edge technology. Over the past year, QCOM’s stock has risen by 62%, while over five years, it’s up 82%.
The groundwork for this impressive growth was laid during the financial results report on April 29, where Qualcomm announced second-quarter 2026 revenue of $10.6 billion and non-GAAP EPS of $2.65—marking four consecutive years of record highs. The QCT Automotive sector reached a record $1.33 billion, a 38% increase year over year.
CEO Cristiano Amon mentioned that the custom silicon initiatives for hyperscalers are “on track for first shipments later this year,” as Qualcomm enhances its data center strategies. A key upcoming event is the Data Center and Physical AI Investor Day on June 24. Furthermore, management has authorized $20 billion in stock buybacks for this quarter.
Skyworks and Qorvo Experience a Rebound
Skyworks has seen a 30% increase in stock over the past month and 27% year-to-date. The company reported first-quarter 2026 revenue of $1.035 billion and non-GAAP EPS of $1.54, which also marks four straight quarters of record revenues. CEO Phil Brace noted that growth in programs related to Wi-Fi 7 and data center infrastructure is playing a significant role in market expansion.
Meanwhile, Qorvo’s stock has gone up 23% in the past month and 37% over the past year. In its fourth quarter of 2026, Qorvo’s non-GAAP EPS was $1.69, surpassing the consensus estimate of $1.21, with its non-GAAP gross margin increasing by 670 basis points year-over-year to 53%. The company also returned $400 million to shareholders through stock repurchases during the quarter.
The merger between Skyworks and Corvo has overcome a major obstacle, having received approval from 81% of shareholders. Smaller RF-focused companies are currently enjoying positive sentiment, coinciding with Qualcomm’s advances in mobile, automotive, and IoT recovery.
Five Years of Challenges Present Complexities
However, today’s market rotation doesn’t negate the tough structural challenges facing smaller brands. Skyworks stock is still down 52% over five years, and Qorvo’s decline is 41% over the same period.
In contrast, Qualcomm’s five-year performance, although respectable at 82%, seems modest beside Broadcom’s massive 818% increase, highlighting a disparity that suggests a diversified corporate approach could be a more successful strategy in the long run.
The pure-play business model carries higher customer concentration risk, a disadvantage in capital investment, and less involvement in software compared to Broadcom. A brief uptick in stock performance doesn’t change the underlying narrative. The optimistic outlook hinges on AI-enhanced phones increasing RF components on individual devices and ongoing improvements in vehicle radio frequency technology.
Looking Ahead
For Qualcomm, the next big moment will be its investor day on June 24, where details about its data center and physical AI strategy are expected to be unveiled. Revenue guidance for the third quarter of 2026 is projected between $9.2 billion and $10 billion, considering a recovery in China’s mobile phone revenue after this quarter.
As for Skyworks and Qorvo, any regulatory updates regarding their merger could influence market sentiment. Savvy investors might want to keep an eye on whether today’s gains hold until the market closes, as a single positive shift is unlikely to reverse five years of structural underperformance.
