Should Qualcomm Stock Holders Look At First Solar Instead?
Qualcomm (QCOM) and First Solar (FSLR) are both filed under semiconductors, and each holds patents that competitors want to use. On October 5, 2026, Huawei announced it had agreed to a multi-year patent licensing deal with Qualcomm. Meanwhile, the U.S. solar panel maker First Solar is actively suing rivals over its own patent rights. Yet when these two companies released their latest financial reports, they delivered completely different messages to shareholders. So which way does Qualcomm’s outlook point?
Qualcomm’s Outlook Points In Two Directions
When Qualcomm issued its financial report on July 29, 2026, the company offered a decidedly mixed forecast. Looking ahead to fiscal Q4 2026, the middle of management’s revenue forecast sits higher than the revenue the company posted for fiscal Q3. At the same time, the middle of its forecast for adjusted earnings is about 3% below the $2.21 per share Qualcomm earned during fiscal Q3. Fiscal Q4 has since ended, but Qualcomm has not yet reported those results.
First Solar released its earnings a day later, keeping its existing 2026 forecasts for net sales, gross profit and capital spending completely unchanged.
The updates represent fundamentally different situations. First Solar merely reiterated its standing plan for 2026. Qualcomm, however, warned shareholders that its modem share for the upcoming iPhone launch is expected to be materially lower than its previous 20% estimate.
Qualcomm Enters Data Centers With Custom Chips
To replace its Apple revenue, Qualcomm plans to expand sales outside the smartphone market. That strategy starts with data center chips, a new business line that carries a lower initial margin. Management expects these sales outside phones to grow more than 60% in fiscal 2027, compared to an expected 24% in fiscal 2026. Qualcomm’s first data center revenue comes mostly from custom chips, a category that management said will drag the chip division’s gross margin down by 1.5% to 2%.
At the same time, Qualcomm is raising its prices by a double-digit percentage to cover higher input costs. Management expects this benefit to reach gross margins over the next couple of quarters.
First Solar offers a stark contrast, executing its business plan with almost no debt. The solar panel maker carries debt equal to just 1.0% of its market value, compared to 8.2% for Qualcomm. First Solar’s management also expects to end 2026 with net cash, meaning it holds more cash than debt.
Side By Side, Qualcomm Is Pricier And Slower
When comparing shared financial metrics, First Solar leads on most of the measures. First Solar stock trades at 11.0 times trailing earnings, well below the 20.1 multiple for Qualcomm. Over the past twelve months, revenue at First Solar grew 24%, easily outpacing the 1.9% growth at Qualcomm. This trajectory holds steady over a three-year timeline, with First Solar expanding 22% a year against 4.8% for Qualcomm. The gap also extends to profitability, where the operating margin sits at 34% for First Solar and 23% at Qualcomm.
Qualcomm’s one edge is its near-term forecast. The $10.1 billion middle of its fiscal Q4 revenue forecast sits above the $9.9 billion it posted in fiscal Q3, while First Solar left its 2026 forecasts unchanged.
During the latest quarter, however, the two companies found themselves nearly level in performance. Revenue fell 3.7% from a year earlier at First Solar and dropped 4.0% at Qualcomm.
Across price, growth, margin and debt metrics, the financial evidence leans toward First Solar. Qualcomm relies on its revenue forecast as its main source of strength. If sales outside phones can grow more than 60% in fiscal 2027, as management forecast, Qualcomm would demonstrate clear progress in replacing its Apple revenue and closing some of the current growth gap.
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