Qualcomm (QCOM) AI Stock Analysis

• Market Cap: $152.19B
• Dividend Yield: 2.01%
• Average Volume (3M): 10.38M
• Price to Earnings (P/E): 29.5
• Beta (1Y): 1.56
• Revenue Growth: 13.66%
• EPS Growth: -45.40%
• Country: US
• Employees: 49,000
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 3.50
• Shares Outstanding: 1,067,000,000
• 10 Day Avg. Volume: 13,040,669
• 30 Day Avg. Volume: 10,382,916
• PEG Ratio: -0.74
• Price to Book (P/B): 8.54
• Price to Sales (P/S): 4.09
• P/FCF Ratio: 14.13
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 3.58
• Enterprise Value/Gross Profit: 6.50
• Enterprise Value/Ebitda: 11.69
• 1Y Price Target: $162.90
• Price Target Upside: 13.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 22
• EPS Forecast (FY): 11.29
• Revenue Forecast (FY): $44.07B

• Rating: 64 Neutral
• Price Target: $146.00 ▲(1.93% Upside)

The score is supported most by strong free cash flow and solid operating profitability with manageable leverage. It is held back by very weak technical momentum (deeply below major moving averages with negative MACD) and a near-term earnings/guidance downshift tied to DRAM-driven handset demand constraints, with valuation offering only limited support at a ~30.8 P/E despite a ~2.58% dividend yield.

Positive Factors

Free cash flow strength

Sustained multi-billion dollar free cash flow provides durable financial flexibility: it funds R&D, strategic M&A, share repurchases and dividends, and cushions cyclical downturns in semiconductor demand, supporting capital allocation choices over the next 2–6 months and beyond.

High-margin licensing and product profitability

Strong gross and operating margins plus very high QTL profitability reflect durable IP monetization and pricing power. Licensing royalties and high-margin chipset businesses underpin sustainable cash generation and reinvestment capacity, helping protect earnings through product cycles.

Diversification beyond handsets

Accelerating automotive, IoT, robotics and early data-center initiatives plus targeted acquisitions materially diversify revenue streams away from handset cyclicality. These structural moves expand addressable markets and reduce concentration risk, supporting more stable mid‑term revenue growth.

Negative Factors

Industry memory shortage impacting handset demand

Reallocation of DRAM to data-center HBM is a structural industry dynamic that can materially shrink handset component availability. Since handset chipset volumes drive a large portion of Qualcomm's revenue, prolonged memory constraints introduce sustained demand risk and planning uncertainty for device OEMs.

Near-term guidance and margin compression

Management's lowered guidance and explicit margin compression show the firm's earnings are sensitive to handset cycles and component availability. This highlights structural volatility in operating leverage: during downturns revenue mix and utilization pressures can materially reduce reported margins and cash flow.

Unresolved Huawei licensing

QTL licensing is a key recurring revenue source; an unresolved Huawei negotiation is a lasting commercial/legal uncertainty. Failure to secure or renew major licenses could materially reduce future royalty streams and weaken long-term revenue stability from the licensing franchise.

Qualcomm Business Overview & Revenue Model

Company Description

QUALCOMM Incorporated engages in the development and commercialization of foundational technologies for the wireless industry worldwide. The company operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI). The QCT segment develops and supplies integrated circuits and system software based on 3G/4G/5G and other technologies for use in wireless voice and data communications, networking, application processing, multimedia, and global positioning system products. The QTL segment grants licenses or provides rights to use portions of its intellectual property portfolio, which include various patent rights useful in the manufacture and sale of wireless products comprising products implementing CDMA2000, WCDMA,LTE and/or OFDMA-based 5G standards and their derivatives. The QSI segment invests in early-stage companies in various industries, including 5G, artificial intelligence, automotive, consumer, enterprise, cloud, and IoT, and investment for supporting the design and introduction of new products and services for voice and data communications, new industries, and applications. It also provides development, and other services and related products to the United States government agencies and their contractors. QUALCOMM Incorporated was incorpotared in 1985 and is headquartered in San Diego, California.

How the Company Makes Money

Qualcomm generates revenue through two primary segments: Qualcomm CDMA Technologies (QCT) and Qualcomm Technology Licensing (QTL). QCT is responsible for the sale of integrated circuits and system software for mobile devices, automotive, and IoT applications, contributing a significant portion of the company's revenue. QTL, on the other hand, earns revenue through licensing agreements that allow manufacturers to use Qualcomm's patented technologies in their products, particularly in mobile devices. This licensing model is crucial as it provides recurring revenue from royalties based on the number of devices sold that incorporate Qualcomm's technology. Additionally, Qualcomm has established strategic partnerships with major manufacturers and telecommunications companies, enhancing its market presence and driving sales. The company's investments in R&D also play a vital role in sustaining its competitive edge and expanding into new markets, further contributing to its revenue growth.

Qualcomm Financial Statement Overview

Summary

Strong cash generation is the key strength (TTM operating cash flow ~$14.4B; free cash flow ~$12.9B, up materially vs. 2022) with solid gross (~55%) and operating (~29%) margins. Balance sheet leverage is manageable (debt-to-equity ~0.70) with healthy ROE (~22%), but bottom-line profitability has stepped down (TTM net margin ~13% vs. higher 2022–2024), which tempers the score.

Income Statement

Qualcomm shows solid operating profitability in the most recent period, with TTM (Trailing-Twelve-Months) gross margin ~55% and operating margin ~29%, indicating strong pricing power and expense control. Revenue is modestly higher versus the latest annual period ($44.9B TTM vs. $44.3B annual), but the longer-term revenue path has been cyclical (down in 2023, then recovering into 2024–2025). The key weakness is the sharp step-down in bottom-line profitability: net margin is ~13% in TTM versus materially higher levels in 2022–2024, suggesting either higher costs, mix shifts, or non-recurring factors fading.

Balance Sheet

Leverage looks manageable with debt-to-equity around ~0.70 in TTM (Trailing-Twelve-Months), improved from earlier peak leverage (notably 2021). Equity has grown over time, supporting balance sheet resilience. Returns remain healthy (TTM return on equity ~22%), though down from the very strong 2022–2024 levels, which points to reduced earnings power versus prior years. Overall, the balance sheet is solid, but not ultra-conservative given meaningful absolute debt and a mid-range leverage profile for the sector.

Cash Flow

Cash generation is a clear strength: TTM (Trailing-Twelve-Months) operating cash flow is ~$14.4B and free cash flow is ~$12.9B, implying strong cash conversion and ample financial flexibility. Free cash flow is broadly in line with earnings (free cash flow to net income ~0.91), suggesting reported profits are supported by cash. Cash flow has also strengthened versus prior years (free cash flow up from ~$6.8B in 2022 to ~$12.9B TTM), although growth rates have been volatile over time, reflecting the cyclical semiconductor backdrop.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	44.87B	44.28B	38.96B	35.82B	44.20B	33.57B
Gross Profit	24.72B	24.55B	21.90B	19.95B	25.57B	19.30B
EBITDA	13.73B	14.93B	12.74B	9.95B	17.25B	11.37B
Net Income	5.37B	5.54B	10.14B	7.23B	12.94B	9.04B
Balance Sheet
Total Assets	53.03B	50.14B	55.15B	51.04B	49.01B	41.24B
Cash, Cash Equivalents and Short-Term Investments	11.82B	12.48B	13.30B	11.32B	6.38B	12.41B
Total Debt	14.82B	16.37B	15.44B	16.07B	16.16B	16.30B
Total Liabilities	29.96B	28.94B	28.88B	29.46B	31.00B	31.29B
Stockholders Equity	23.07B	21.21B	26.27B	21.58B	18.01B	9.95B
Cash Flow
Free Cash Flow	12.93B	12.82B	11.16B	9.85B	6.83B	8.65B
Operating Cash Flow	14.39B	14.01B	12.20B	11.30B	9.10B	10.54B
Investing Cash Flow	-1.85B	-800.00M	-3.62B	762.00M	-5.80B	-3.36B
Financing Cash Flow	-14.07B	-13.20B	-9.27B	-6.66B	-7.20B	-6.80B

Qualcomm Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 143.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QCOM, the sentiment is Negative. The current price of 143.24 is below the 20-day moving average (MA) of 147.07, below the 50-day MA of 162.98, and below the 200-day MA of 159.68, indicating a bearish trend. The MACD of -6.51 indicates Negative momentum. The RSI at 37.86 is Neutral, neither overbought nor oversold. The STOCH value of 58.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for QCOM.

Qualcomm Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADI	76 Outperform	$164.92B	61.65	7.86%	1.43%	16.89%	39.29%
TXN	71 Outperform	$204.83B	41.43	29.98%	3.11%	9.90%	1.65%
AMD	67 Neutral	$331.10B	75.67	7.08%	―	31.83%	80.45%
NXPI	67 Neutral	$61.68B	30.65	21.01%	1.79%	-6.81%	-23.16%
QCOM	64 Neutral	$152.19B	29.47	21.48%	2.01%	13.66%	-45.40%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
INTC	57 Neutral	$230.67B	-555.07	-0.25%	―	-1.49%	―

Qualcomm Corporate Events

Qualcomm announces board member Christopher Young to step down

On January 13, 2026, Qualcomm announced that board member Christopher D. Young will step down from the company’s Board of Directors, effective as of Qualcomm’s 2026 Annual Meeting of Stockholders. Young’s departure is driven by the significant time commitments of his new position as Chief Executive Officer and board member of Vertex, Inc., marking a planned change in Qualcomm’s board composition that may open the way for refreshed governance and new director appointments.

The most recent analyst rating on (QCOM) stock is a Hold with a $180.00 price target. To see the full list of analyst forecasts on Qualcomm stock, see the QCOM Stock Forecast page.

Qualcomm Announces Board Member Neil Smit’s Retirement

On December 10, 2025, Qualcomm announced that Neil Smit, a member of its Board of Directors, will retire following the company’s 2026 Annual Meeting of Stockholders. Smit’s retirement marks the end of nearly eight years of service, during which he contributed significantly to the company’s governance and strategic direction.

The most recent analyst rating on (QCOM) stock is a Hold with a $185.00 price target. To see the full list of analyst forecasts on Qualcomm stock, see the QCOM Stock Forecast page.

Qualcomm Board Approves Bylaw Amendments for Stockholders

On December 9, 2025, Qualcomm‘s Board of Directors approved amendments to the company’s bylaws, allowing stockholders with at least 25% net long ownership of the company’s common stock to call a special meeting, provided they have held the interest for at least one year. These changes aim to ensure stockholders receive adequate information and prevent resource wastage from frequent meetings, with additional amendments made for clarity and technical updates.

The most recent analyst rating on (QCOM) stock is a Buy with a $200.00 price target. To see the full list of analyst forecasts on Qualcomm stock, see the QCOM Stock Forecast page.