Qualcomm (QCOM) AI Stock Analysis

• Market Cap: $180.03B
• Dividend Yield: 2.05%
• Average Volume (3M): 7.28M
• Price to Earnings (P/E): 16.1
• Beta (1Y): 1.54
• Revenue Growth: 15.82%
• EPS Growth: 34.20%
• Country: US
• Employees: 49,000
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 2.77
• Shares Outstanding: 1,079,000,000
• 10 Day Avg. Volume: 8,471,912
• 30 Day Avg. Volume: 7,277,648
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 4.08
• Enterprise Value/Gross Profit: 7.34
• Enterprise Value/Ebitda: 12.35
• 1Y Price Target: $181.67
• Price Target Upside: 7.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 79 Outperform
• Price Target: $181.00 ▲(6.65% Upside)

Qualcomm's overall stock score reflects strong financial performance and a positive outlook from recent earnings. The company's strategic focus on growth areas like automotive, IoT, and AI, along with solid technical indicators, supports a favorable investment case. Valuation metrics are reasonable, though challenges with Apple revenues and competitive pressures warrant attention.

Positive Factors

Revenue Growth in Automotive and IoT

The significant growth in automotive and IoT segments indicates Qualcomm's successful diversification strategy, reducing reliance on traditional mobile markets and positioning the company for sustained revenue expansion in emerging tech sectors.

Strategic Expansion into AI and Data Centers

Expanding into AI and data centers diversifies Qualcomm's portfolio and enhances its competitive edge in high-growth tech areas, supporting long-term revenue and market position.

Strong Cash Flow Management

Efficient cash flow management ensures Qualcomm can fund operations, invest in growth opportunities, and return value to shareholders, underpinning financial stability and strategic flexibility.

Negative Factors

Challenges with Apple Revenues

Reduced revenues from Apple could impact Qualcomm's short-term financial performance, highlighting the risk of dependency on a major client and the need to diversify its customer base.

Mixed Handset Market Dynamics

Weaker handset market dynamics may affect Qualcomm's core business, emphasizing the importance of its strategic shift towards automotive, IoT, and AI to mitigate reliance on mobile handset sales.

Competition with Samsung

Increased competition from Samsung in the processor market could erode Qualcomm's market share, necessitating innovation and strategic partnerships to maintain its competitive position.

Qualcomm Business Overview & Revenue Model

Company Description

Qualcomm Incorporated is a global leader in semiconductor technology and telecommunications equipment, primarily known for its innovations in mobile communications. The company operates through segments including Qualcomm CDMA Technologies (QCT), which designs and supplies chipsets for mobile devices, and Qualcomm Technology Licensing (QTL), which offers licenses for its extensive patent portfolio. Qualcomm's core products include System-on-a-Chip (SoC) solutions, modems, and software for mobile devices, automotive, IoT, and other connected devices, positioning it at the forefront of the 5G technology revolution.

How the Company Makes Money

Qualcomm generates revenue through two main segments: Qualcomm CDMA Technologies (QCT) and Qualcomm Technology Licensing (QTL). QCT is responsible for the design and sale of chipsets used in smartphones, tablets, automotive applications, and IoT devices, contributing a significant portion of the company's revenue. QTL, on the other hand, earns income through licensing fees from manufacturers for the use of Qualcomm's patented technologies, particularly in mobile communications. This dual revenue model allows Qualcomm to capitalize on both hardware sales and intellectual property. Additionally, partnerships with major smartphone manufacturers, automotive companies, and technology firms enhance its market reach and create recurring revenue streams through royalties. The rapid adoption of 5G technology and expansion into new markets, such as automotive and IoT, are significant factors that contribute to Qualcomm's earnings.

Qualcomm Financial Statement Overview

Summary

Qualcomm's financial performance is robust, with strong profitability and efficient cash flow management. The income statement shows healthy margins and revenue growth, while the balance sheet is stable with a reasonable debt-to-equity ratio. Cash flow management is effective, supporting its financial health.

Income Statement

Qualcomm's income statement demonstrates strong profitability with a healthy gross profit margin of 55.7% and a net profit margin of 26.8% for TTM (Trailing-Twelve-Months). The company has shown robust revenue growth of 11% from the previous period, indicating a positive trend. EBIT and EBITDA margins are also solid at 27.8% and 30.8% respectively, reflecting effective cost management and operational efficiency.

Balance Sheet

The balance sheet of Qualcomm is stable with a reasonable debt-to-equity ratio of 0.54, indicating a balanced use of leverage. The equity ratio is 49.6%, which suggests a strong equity base supporting its assets. Return on Equity (ROE) is impressive at 42.5%, showcasing excellent shareholder returns. However, the company should monitor its liabilities to ensure continued financial health.

Cash Flow

Qualcomm has demonstrated strong cash flow management with a free cash flow growth rate of 4.1% for the TTM. The operating cash flow to net income ratio stands at 1.09, indicating efficient cash generation from operations. The free cash flow to net income ratio is also healthy at 1.00, suggesting that the company can cover its net income with available free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.26B	38.96B	35.82B	44.20B	33.57B	23.53B
Gross Profit	24.09B	21.90B	19.95B	25.57B	19.30B	14.28B
EBITDA	14.31B	12.74B	9.95B	17.25B	11.37B	7.62B
Net Income	11.58B	10.14B	7.23B	12.94B	9.04B	5.20B
Balance Sheet
Total Assets	54.86B	55.15B	51.04B	49.01B	41.24B	35.59B
Cash, Cash Equivalents and Short-Term Investments	10.01B	13.30B	11.32B	6.38B	12.41B	11.21B
Total Debt	14.79B	15.44B	16.07B	16.16B	16.30B	15.73B
Total Liabilities	27.65B	28.88B	29.46B	31.00B	31.29B	29.52B
Stockholders Equity	27.21B	26.27B	21.58B	18.01B	9.95B	6.08B
Cash Flow
Free Cash Flow	11.62B	11.16B	9.85B	6.83B	8.65B	4.41B
Operating Cash Flow	12.66B	12.20B	11.30B	9.10B	10.54B	5.81B
Investing Cash Flow	-714.00M	-3.62B	762.00M	-5.80B	-3.36B	-5.26B
Financing Cash Flow	-11.96B	-9.27B	-6.66B	-7.20B	-6.80B	-5.71B

Qualcomm Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 169.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QCOM, the sentiment is Positive. The current price of 169.72 is above the 20-day moving average (MA) of 161.14, above the 50-day MA of 156.57, and above the 200-day MA of 154.32, indicating a bullish trend. The MACD of 3.19 indicates Negative momentum. The RSI at 71.03 is Negative, neither overbought nor oversold. The STOCH value of 89.77 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for QCOM.

Qualcomm Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QCOM	79 Outperform	$180.03B	16.09	44.62%	2.05%	15.82%	34.20%
ADI	78 Outperform	121.68B	62.41	5.74%	1.57%	7.08%	18.39%
NXPI	76 Outperform	56.91B	26.48	22.45%	1.80%	-7.53%	-21.88%
TXN	75 Outperform	163.30B	32.79	28.39%	3.03%	3.62%	-5.27%
AMD	73 Outperform	259.31B	91.98	4.75%	―	27.17%	108.67%
INTC	60 Neutral	134.32B	-6.04	-20.95%	0.42%	-3.72%	-2120.70%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Qualcomm Corporate Events

Qualcomm Appoints Dr. Jeremy Kolter to Board

On September 2, 2025, Qualcomm‘s Board of Directors elected Dr. Jeremy Kolter, a professor and department head at Carnegie Mellon University, to join the Board. Dr. Kolter will serve until the next annual stockholders’ meeting and has been appointed to the Governance Committee. He will receive compensation under the company’s 2025 Director Compensation Plan, including 1,049 deferred stock units as part of his service.

Qualcomm Announces Leadership Transition with New CAO

On August 25, 2025, Qualcomm announced a leadership transition with Neil Martin stepping down as Chief Accounting Officer to lead the company’s Mergers & Acquisitions efforts. Patricia Grech was appointed as the new Chief Accounting Officer, bringing extensive experience within the company since 2006. Her promotion includes a salary adjustment and additional benefits, reflecting Qualcomm’s commitment to leveraging internal talent for strategic roles.

Qualcomm Announces Acquisition of Alphawave IP Group

On June 9, 2025, Qualcomm announced an agreement to acquire Alphawave IP Group plc through its subsidiary Aqua Acquisition Sub LLC. The acquisition offers Alphawave shareholders a choice between a cash offer or shares in Qualcomm, potentially impacting Qualcomm’s market position by expanding its technological capabilities and shareholder base.