Qualcomm Just Got Called an AI Loser-So Why Is It Rallying?

Shares of Qualcomm Inc. (NASDAQ: QCOM) were trading up more than 2% on the morning of Wednesday, Dec. 10, marking their longest stretch of gains in months and putting the stock up 12% in just a few weeks. It’s an impressive move for a company that, according to the team at Wedbush, is supposedly on the wrong side of the AI revolution.

Earlier this week, Wedbush released a note arguing that a surge in AI-related memory demand will squeeze margins and hurt companies focused on traditional PC and handset markets. Qualcomm was named among the unlucky few "AI losers" expected to feel pressure as DRAM and NAND flash prices soar and hyperscalers like NVIDIA Corp (NASDAQ: NVDA) lock in supply.

In the past, that kind of headline might have been enough to send Qualcomm’s stock tumbling. But instead, shares are moving higher, technical momentum is continuing to build, and the bears who’ve spent much of the year calling for a breakdown are being forced to watch the rally continue. So what’s really going on here?

The AI Loser Narrative Misses the Point

Wedbush’s argument hinges on what sounds like clear logic: rising memory costs mean higher input expenses for companies tied to legacy device manufacturing, while most AI infrastructure profits flow to the data center heavyweights. Based on that argument, Qualcomm’s exposure through its smartphones and PC businesses could make it collateral damage. 

The problem with that narrative is that it ignores where Qualcomm has actually been spending its time and money. The company has been positioning itself for the next wave of generative AI deployment, which moves computing power away from centralized data centers and onto the devices people use every day.

In that world, Qualcomm’s years of experience in efficient chip design, edge computing, and connectivity could be an advantage rather than a weakness. It’s beginning to build AI-capable processors that will power everything from flagship smartphones to next-generation laptops. The company’s ongoing expansion into automotive technology and the Internet of Things further offsets its reliance on smartphones and other legacy hardware markets, which Wedbush sees as its primary risk.

Technical Momentum Is Back

That shift in narrative is now being echoed in the stock itself, with momentum continuing to reflect a company moving from defense to offense. After dipping toward $160 in early November, shares found solid support and have bounced higher, confirming yet another higher low in the multi-month uptrend that’s been in place since April.

The stock’s Moving Average Convergence Divergence (MACD) indicator, one of the most widely followed trend tools, logged a bullish crossover last week, signaling that upward momentum is gaining strength again. Meanwhile, its Relative Strength Index (RSI) has turned up sharply from neutral territory, further strengthening the argument that the buyers are firmly in control.

In short, the technical setup is about as strong as Qualcomm could ask for heading into the final few weeks of the year. The fact that it is holding this pattern even in the wake of Wedbush’s comments shows just how strong it is.

Fundamentals Are Still Supportive

As we’ve been highlighting for some time now, Qualcomm’s fundamentals remain a key reason to be bullish on the stock, regardless of negative comments from certain analysts. Its most recent quarterly report once again topped expectations on both EPS and revenue, with solid year-over-year growth and upbeat forward guidance.

Even with market volatility, the company’s balance sheet remains robust, and its valuation is attractive. Even with the recent rally, Qualcomm still trades at a deep discount to most of its tech peers, many of which have yet to show similar levels of diversification or profitability.

It’s also worth remembering that not all analysts share Wedbush’s pessimism. The teams at Susquehanna and Rosenblatt have reiterated their Buy or equivalent ratings in recent weeks, with refreshed price targets that call for as much as 25% of upside.  

For all the noise around AI winners and losers, there are lots of reasons for investors to have high expectations for Qualcomm heading into 2026. The company has been written off before, yet every time it’s managed to find a way to prove the naysayers wrong—it looks like it might be about to do that once again.

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