Qualcomm Stock (QCOM) Rallies Thanks to an Expanded Partnership with Stellantis (STLA)

Qualcomm (QCOM) stock soared on Friday after the chip company reached an agreement with automaker Stellantis (STLA). This expands a contract between the two for Qualcomm’s Snapdragon system-on-chip (SoC) products. SoCs are a microchip that carry most of a computer’s components on a single piece of silicon. These are handy for companies that need to fit computers into tight spaces. With that in mind, it makes sense that Stellantis wants to outfit its vehicles with them.

This expanded partnership includes Qualcomm’s Snapdragon Digital Chassis and Snapdragon Ride Pilot ADAS platform. These chips offer driver assistance and other safety features. These will be used in millions of next-generation vehicles that Stellantis is working on.

Another part of this deal includes a collaboration between Qualcomm and Stellantis. The latter’s autonomous vehicle technology company aiMotive will join Qualcomm. This combination will allow for a deeper partnership between the two. It will also likely boost the abilities of Qualcomm’s SoC line of products. It’s unclear if this would result in other vehicle makers gaining access to SoCs that were created based on this partnership.

Qualcomm Stock Movement Today

Qualcomm stock was up 12.03% on Friday, building on a 40.68% year-to-date gain. The shares have also increased 46.79% over the past 12 months.

Trading activity today saw some 16.5 million shares change hands. This was below the company’s three-month daily average of about 23.44 million shares.

Is Qualcomm Stock a Buy, Sell, or Hold?

Turning to Wall Street, the analysts’ consensus rating for Qualcomm is Hold, based on nine Buy, 19 Hold, and four Sell ratings over the past three months. With that comes an average QCOM stock price target of $178.81, representing a potential 24.98% downside for the shares.