Qualcomm (QCOM) shares surged 5.05% in intraday trading, outpacing the broader semiconductor rally as investors responded to positive industry trends and the company's strategic moves in artificial intelligence (AI). The stock's strong performance comes as the semiconductor sector experiences robust growth and increasing demand for AI-related technologies.

The rally was supported by TD Cowen's decision to maintain a Buy rating on Qualcomm, reflecting confidence in the company's outlook. This positive sentiment aligns with the broader semiconductor industry's impressive growth, as reported by the Semiconductor Industry Association, which noted a 17.1% year-over-year increase in global sales for February 2025.

Qualcomm's recent acquisition of MovianAI from VinAI has significantly bolstered its AI capabilities, positioning the company to capitalize on the growing demand for AI technologies across various sectors. This strategic move, coupled with Qualcomm's strong presence in 5G and mobile technologies, has enhanced its competitive edge in the rapidly evolving tech landscape.

Furthermore, Qualcomm's attractive valuation metrics and positive earnings estimate revisions have caught investors' attention. With a forward P/E of 10.6X, below the industry average, and a consensus earnings estimate of $11.78 per share for fiscal 2025 (up 15.3% year-over-year), the company presents a compelling value proposition in the high-growth semiconductor market.