Qualcomm, Inc. (NASDAQ:QCOM) fell 3.33% to close at $197.32 on Wednesday, but jumped about 13% to $222.97 in after-hours trading. The sharp reversal comes after Qualcomm laid out much bigger growth goals for its non-mobile phone business and revealed a further push into AI data center chips.
The company said it now expects non-mobile revenue to reach $40 billion by fiscal 2029, nearly double the previous estimate of $22 billion. Qualcomm also said it plans to generate $15 billion in data center sales by 2029, signaling more aggressive attempts to diversify beyond smartphones.
Qualcomm’s AI data center promotion is in full swing
In an investor presentation, Qualcomm announced the Dragonfly C1000, a data center CPU designed for agent-based AI workloads. The company said Meta will use the chip when it begins production in 2028.
The announcement is significant as Qualcomm seeks to position itself as a power-efficient alternative in AI infrastructure. Management is betting that its experience with low-power mobile and PC chips will translate to data centers, where energy costs are a major constraint.
Qualcomm also announced plans to acquire Modular, an AI software infrastructure company. The deal strengthens Qualcomm’s software stack and supports the company’s goal of building a more open developer ecosystem across CPU, GPU, NPU and custom AI silicon.
Why QCOM stock soared 13% after hours
The market reaction was triggered by the size of Qualcomm’s updated target. A $40 billion non-mobile revenue target gives investors a clearer path to growth beyond smartphones, where demand has matured.
The company also increased its automotive design win pipeline to $65 billion and set a fiscal 2029 auto revenue target of $10 billion. Combined with its data center roadmap, Qualcomm is now poised to become a broader AI, automotive, edge and cloud computing platform.
This is a major narrative shift for a stock that has long been seen as heavily tied to the mobile phone cycle.
QCOM Technical Analysis: Overtime Gap Test Key Resistance
Qualcomm’s daily chart was weak until the close, but an after-hours rally changed the short-term situation.
QCOM closed at $197.32, below several key short-term moving averages, including the 10-day EMA of $212.30, 10-day SMA of $210.33, 20-day EMA of $213.69, 30-day EMA of $209.76, and Hull MA of $210.42. Therefore, the daily chart turned bearish before the daily update for investors.
However, an after-hours rally to $222.97 brings QCOM above the $210-$214 moving average cluster and back near the next resistance zone. The stock is currently testing its 20-day SMA at $221.63, VWMA at $221.96, and Ichimoku at $225.01.
Momentum indicators remain mixed. The RSI at 44.68 is neutral, but the MACD at 1.50, Awesome Oscillator at -5.29, and ADX at 21.07 still indicate a sell signal. The momentum at -8.01 indicates a buy signal, suggesting that a rebound may be early but not yet fully confirmed.
Main levels to note:
- resistance: $221.63, $221.96, $225.01, $230.00
- support: $213.69, $212.30, $210.42, $209.76, $198.93, $196.16
- Bullish reversal level: The daily closing price exceeds $225
- Bullish continuation level: Breaks above $230
- Bearish risk level: Fall below $210
If QCOM breaks above the $221-$225 area, buyers could target $230 and above. However, if the stock price falls below $210, the post-event rally could lose momentum and refocus on the $198-$196 support zone.
Qualcomm traders should watch for $225 breakout
Qualcomm’s latest update for investors gives bulls new momentum. The $40 billion non-phone revenue target, Metalinked Dragonfly CPU roadmap, and Modular acquisition all support the view that Qualcomm is becoming more than just a smartphone chip maker.
Technically, the overtime move is promising, but it needs to be confirmed. A close of the day above $225 would strengthen the possibility of a breakout, while a failure to break above $210 would signal that the bull market is weakening.
