Qualcomm’s shares have ripped higher, climbing more than 40% since the chipmaker disclosed a marquee data‑center customer in its April earnings call. The rally outpaces most semiconductor peers, yet it follows a two‑year stretch where the stock barely budged. At just over 20 times forward earnings, the company remains one of the sector’s cheapest names and investor confidence in the sector.

Over the past 24 months the stock delivered a modest 5% gain, while the PHLX Semiconductor Index surged more than 150%. That disparity fuels skepticism that Qualcomm can shed its image as a pure‑play smartphone chip supplier. Its reliance on Apple still accounts for 57% of quarterly revenue, a fact that keeps investors wary despite the data‑center push.

Wall Street still prices the firm far below rivals; Arm Holdings trades near 175× forward earnings, reflecting the premium placed on pure‑play AI chips. Qualcomm’s legacy in cellular standards and its expanding portfolio in automotive and data‑center silicon suggest a growth runway. Analysts note the upside is notable, making the discount a buying opportunity for investors seeking AI‑related hardware at a deep valuation.