Qualcomm is bidding for a larger share of the AI supply chain but faces market skepticism about its ability to compete with NVIDIA.
Munro Partners, an investment management firm, highlighted Qualcomm (NASDAQ: QCOM) as a detractor in its second-quarter 2026 commentary for the Munro Concentrated Global Growth Fund. The fund delivered a strong quarter, returning 23.8% net compared with the MSCI World ex-Australia Index's return of 12.6%, as global equity markets rebounded following geopolitical volatility in March.
Despite this strong performance, uncertainty persisted around the Middle East conflict and changes in Federal Reserve communication under Kevin Warsh. Easing oil prices and limited inflation pressure provided a more supportive macroeconomic backdrop. The portfolio identified opportunities across high-performance computing, networking, power generation, cooling, and other data-center infrastructure areas throughout the quarter.
Qualcomm remained constructive on the broader AI investment cycle, supported by accelerating adoption, rising hyperscale capital expenditure, and stronger monetization across major platforms. However, the company's own positioning in that cycle faced skepticism. As the fund stated in its investor letter, QUALCOMM "detracted, after their place in the AI supply chain was questioned by investors." The company had "laid out their medium term plan for capturing AI supply chain share across custom chips, AI accelerators and CPUs, however this was met with skepticism from the market given the company's minimal share today."
Qualcomm is a semiconductor and communication technology company historically focused on the wireless industry, making its AI pivot a significant strategic shift. On September 30, 2026, the stock closed at $184.04 per share, with a market capitalization of $184.04 billion and a 52-week trading range between $121.99 and $259.92. The stock returned 9.18% over the past month and 9.00% over the past 52 weeks, reflecting modest recovery despite broader investor concerns about the company's positioning.
Institutional sentiment showed mixed signals. According to available data, 95 hedge fund portfolios held Qualcomm at the end of the second quarter of 2026, up from 71 in the previous quarter, suggesting growing institutional interest despite market skepticism. The increase indicates that some investors see longer-term value in the company's AI ambitions, even as the broader market remains cautious about near-term execution. The central challenge for Qualcomm remains convincing investors that it can translate its medium-term AI roadmap into meaningful market share gains against established competitors in custom chips and accelerators.