Qualcomm Data Center Growth Adds to Margin Pressure, RBC Says

02:55 PM EST, 11/05/2026 (MT Newswires) -- Qualcomm's (QCOM) data center expansion is adding to margin pressures despite strong initial demand for custom silicon, while component cost inflation continues to weigh on earnings, RBC Capital Markets said in a note Thursday. The brokerage said smartphone revenue appears to be nearing a bottom, while automotive growth remains strong. However, rising data center investments are expected to create additional margin pressure, partly offset by planned price increases, it said. Qualcomm expects the data center business to generate more than $650 million in Q1 revenue, the firm said. RBC maintained the company's sector perform rating, with a $180 price target. Price: 156.22, Change: -16.97, Percent Change: -9.80