Can Snapdragon 8 Elite Gen 5 for Galaxy Launch Boost QCOM Shares?

Qualcomm Incorporated QCOM has launched its most advanced mobile chip, the Snapdragon 8 Elite Gen 5 for Galaxy, strengthening its long-running partnership with Samsung Electronics. The new processor, which is an updated version of Snapdragon 8 Elite Gen 5 and specifically optimized for the exclusive Samsung Galaxy series, will power the Galaxy S26 Ultra worldwide, while the Galaxy S26+ and S26 will use it in select regions.

Qualcomm’s new chipset includes the custom 3rd Gen Qualcomm Oryon CPU, next-generation Qualcomm Adreno GPU, and advanced Qualcomm Hexagon NPU to boost performance, graphics and on-device AI. The platform enables faster workflows, improved camera capabilities, including Advanced Professional Video capture, and more personalized AI experiences, such as Now Nudge.

The company is closely working with Samsung to optimize the chip for Galaxy AI features, enabling timely suggestions and efficient background tasks while keeping power use low. The chip includes Qualcomm Smart Transmit technology, which improves connectivity by optimizing uplink performance across 5G, Wi-Fi, Bluetooth and satellite links for faster uploads, better coverage, and seamless performance. The platform also includes the Qualcomm FastConnect 7900 mobile connectivity system with Ultra Wideband, making interactions on the Galaxy S26 Ultra and S26+ more responsive.

Other Tech Firms Focused on Mobile Chip Development

Qualcomm faces competition from Apple, Inc. AAPL and Broadcom, Inc. AVGO. Apple is continuing to upgrade its in-house A-series chips by launching A19 and A19 Pro mobile chips in its iPhone 17 series. The company has introduced its first in-house 5G modem, C1, and is expanding its AI capabilities to reduce reliance on external suppliers. Apple is expected to keep improving future iPhone chips for better performance and power efficiency. 

Broadcom is developing advanced Wi Fi and wireless combo chips, including Wi Fi 7 and Wi Fi 8 solutions, to improve speed, range and low-latency connections for mobile devices. It also launched the BroadPeak radio digital front-end System on a Chip to support advanced 5G and future 6G mobile networks.

QCOM’s Price Performance, Valuation and Estimates

Qualcomm shares have lost 5.6% over the past year against the industry’s growth of 65%.

Going by the price/earnings ratio, the company's shares currently trade at 12.85 forward earnings, lower than 32.86 for the industry.

Earnings estimates for fiscal 2026 have declined 7.5% to $11.18 over the past 60 days, while those for fiscal 2027 have also decreased 8.8% to $11.41.

Qualcomm stock currently carries a Zacks Rank #5 (Strong Sell). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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