SpaceX Is Teaming Up With Qualcomm on Mobile Network. What It Means for QCOM Stock.

Qualcomm (QCOM) shares extended gains on Wednesday after the chipmaker announced a major new partnership with Elon Musk’s space and artificial intelligence (AI) company SpaceX (SPCX). QCOM will provide key 5G network infrastructure technology for Starlink Mobile — a planned nationwide wireless network that combines terrestrial cellular coverage with satellite capabilities.

Despite today’s surge, Qualcomm stock remains down more than 35% versus its year-to-date high. 

Significance of the SpaceX Deal for Qualcomm Stock

Qualcomm will supply its Dragonwing radio equipment, baseband units, and related software for Starlink Mobile's terrestrial 5G network, with deployment expected to begin in 2027. The company described the contract as its "biggest 5G deal yet."

The SpaceX agreement represents a major strategic win for QCOM shares because it expands the firm’s footprint in telecommunications infrastructure, a new growth avenue beyond handset chips.

For investors, the announcement reinforces Qualcomm’s success in diversifying revenue streams at a time when the global smartphone market has matured. 

The deal positions QCOM as a crucial technology supplier in SpaceX’s ambitious effort to build a hybrid satellite-terrestrial wireless network across the U.S. 

If Starlink Mobile scales as planned, Qualcomm could benefit from years of infrastructure-related demand while strengthening its credentials with telecom operators and enterprise networking clients worldwide.

Should You Buy QCOM Shares Ahead of Q4 Earnings?

While the SpaceX announcement is evidently a major positive, caution is nonetheless warranted in buying Qualcomm shares ahead of the company’s fiscal Q4 earnings, which are set to be released today after market close.

Consensus is for the semiconductor giant to report $1.46 in earnings per share (EPS) for its fourth financial quarter, which would represent a nearly 43% decline on a year-over-year basis. 

Additionally, QCOM currently sits decisively below its key moving averages (MAs), indicating bears remain firmly in control across multiple timeframes. 

A healthy 2.18% dividend yield makes the chip stock somewhat more attractive as a long-term holding, though. 

Wall Street’s Consensus View on Qualcomm

Note that Wall Street analysts haven’t thrown in the towel on QCOM stock, either. 

The consensus rating on Qualcomm sits at “Moderate Buy,” with the mean price target of about $199 indicating potential upside of roughly 18% from here. 

On the date of publication, Wajeeh Khan did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.