Qualcomm stock rallies on OpenAI smartphone chip partnership, signaling mobile AI acceleration.

Shares of Qualcomm, Inc. (QCOM) surged more than 6.5% in Sunday's overnight trading session after reports emerged that OpenAI is working with the company and MediaTek to develop smartphone processors. According to analyst Ming-Chi Kuo, known for his insights on Apple, mass production of these processors is expected in 2028, with Chinese electronics manufacturer Luxshare serving as the system co-design and manufacturing partner.

Qualcomm's Snapdragon system-on-chip (SoC) processors are widely used by major Android smartphone manufacturers, including Samsung and Xiaomi. The OpenAI partnership could position Qualcomm at the center of a new process in which phone chips are optimized for real-time AI agent inference. As Kuo noted, "Only by fully controlling both the operating system and hardware can OpenAI deliver a comprehensive AI agent service," with smartphones remaining "the largest-scale device category for the foreseeable future."

As a processor co-development partner, Qualcomm stands to benefit from long-term replacement demand. OpenAI is expected to finalize specifications and suppliers by late 2026 or the first quarter of 2027.

Timing adds momentum to the stock move: Qualcomm's second-quarter earnings are expected on Wednesday. Wall Street analysts project revenue of $10.56 billion for the quarter, down approximately 2.6% year-over-year, with earnings per share of $2.58 compared to $2.85 in the prior year.

On Stocktwits, retail sentiment around QCOM stock has jumped from bullish to extremely bullish territory over the past 24 hours with high message volumes. Some bullish retail traders predict the company's earnings will follow the trajectory of Intel and AMD, while others have projected share prices rising past $250. QCOM shares were trading around $157.14 at the time of reporting. The stock has declined nearly 14% year-to-date.