Snapdragon 8 Elite Gen 5 for Galaxy Phones Debuts in S26 Lineup, but Qualcomm Stock Remains a 'Strong Sell'

Qualcomm has launched the Snapdragon 8 Elite Gen 5 for Galaxy to power Samsung's new Galaxy S26 series, even as one Wall Street analyst keeps a rare "Strong Sell" call on the chipmaker's stock amid weak share performance.

Qualcomm and Samsung are deepening their long-running partnership with a custom "for Galaxy" version of the Snapdragon 8 Elite Gen 5, set to drive performance and AI features in the Galaxy S26 lineup.

Official documents and regulatory listings show the Galaxy S26 Ultra using Qualcomm's SM8850 chipset, identified as the Snapdragon 8 Elite Gen 5, pointing to a return to a global Snapdragon rollout for Samsung's top-end model, according to Zacks.

The chip is built around Qualcomm's latest Oryon CPU design and next‑generation Adreno graphics, promising higher speeds, better efficiency, and advanced on‑device AI for imaging, gaming, and productivity.​

Leaked specifications indicate the Snapdragon 8 Elite family moves to a cutting‑edge 3 nm process and delivers double‑digit performance gains over the Snapdragon 8 Gen 3, with notable boosts in both single‑core and multi‑core tests.

Qualcomm pairs the CPU with LPDDR5X memory and UFS 4.0 storage, enabling faster app launches and smoother multitasking on flagship phones like the S26 Ultra. Graphics improvements, including a new Adreno 8‑series GPU, are aimed at high‑refresh‑rate gaming and 8K video capabilities, aligning with Samsung's push for premium camera and display experiences.

Despite the high‑profile mobile launch and Qualcomm's broader push into AI hardware, the stock has struggled to win over every analyst, BarChart reported.

Over the past 52 weeks, Qualcomm shares have fallen about 11 percent, sharply underperforming the S&P 500, which gained roughly 15 percent in the same period. The weakness has continued into 2026, with the stock down around 10.7 percent year‑to‑date while the broader index is modestly higher.

Analyst data compiled this year show most firms remain constructive, with a consensus rating of "Moderate Buy" and the majority of ratings in the buy or hold camp.

However, a small minority still sees more downside than upside: among dozens of tracked recommendations, only one sits at "Strong Sell," highlighting lingering concerns about handset‑driven revenue and competitive pressure even as Qualcomm touts diversification into automotive, IoT, and data‑center AI.

Recent downgrades, including a move from "Outperform" to "Neutral" by Mizuho in January alongside a lower price target, underline fears that smartphone demand and pricing could cap near‑term gains despite flagship deals like the Galaxy S26, as per Qualcomm.