Will QCOM's Utility Market Expansion With Anterix Deal Boost Shares?

Qualcomm Incorporated QCOM is expanding its presence in the utility and critical infrastructure market through a collaboration with Anterix Inc. ATEX, a leader in mission-critical private wireless broadband spectrum for the utility sector. The tie-up aims to speed up the adoption of next-generation private wireless networks for utilities across the United States.

Per the partnership, Qualcomm will supply industrial-grade IoT chipsets designed for large-scale utility deployments, strengthening its role in mission-critical connectivity. Its Snapdragon SDX35-3 and SDX32-3 IoT (Internet of Things) modems will deliver 4G and 5G cellular connectivity on Anterix’s 900 MHz platform, enabling utilities to deploy intelligent grid-edge applications, improve operational visibility and enhance network reliability.

Qualcomm’s IoT modem portfolio also includes the Snapdragon X62 modem, which delivers high-speed 5G connectivity with power-efficient performance, making it well-suited for large-scale utility and industrial deployments. Its 9205S modem adds cellular and satellite support with low-power, long-life operation, helping utilities maintain reliable coverage for smart meters, asset tracking and grid monitoring.

Private wireless and industrial IoT markets are growing rapidly as utilities move to secure, low-latency Long-Term Evolution and 5G networks, with companies like Easymetering starting to use Qualcomm’s SDX35-3 modem in advanced metering and grid-edge solutions, strengthening the company’s focus on smarter and more resilient utility operations.

How Are Competitors Performing?

Qualcomm faces competition from Intel Corporation INTC and Broadcom, Inc. AVGO. Intel is expanding its presence in the utility and critical infrastructure market by promoting AI-enabled edge computing and rugged processors for smart grids and industrial automation. The company has also broadened partnerships with Siemens to deliver secure, real-time edge and AI solutions for energy infrastructure.

Broadcom is offering networking, broadband and custom chip solutions for reliable industrial and grid communications to remain competitive in the utility and critical infrastructure market. It also uses its software platforms for security and infrastructure to help utilities strengthen network resilience, cybersecurity, and overall operational performance.

QCOM’s Price Performance, Valuation and Estimates

Qualcomm shares have lost 5.7% over the past year against the industry’s growth of 59.7%.

Going by the price/earnings ratio, the company's shares currently trade at 12.83 forward earnings, lower than 31.67 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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research