Qualcomm (QCOM) AI Stock Analysis

• Market Cap: $178.23B
• Dividend Yield: 2.19%
• Average Volume (3M): 8.35M
• Price to Earnings (P/E): 16.5
• Beta (1Y): 1.59
• Revenue Growth: 16.15%
• EPS Growth: 32.28%
• Country: US
• Employees: 49,000
• Sector: Technology
• Sector Strength: 86
• Industry: Semiconductors
• EPS (TTM): 2.85
• Shares Outstanding: 1,098,000,000
• 10 Day Avg. Volume: 9,622,926
• 30 Day Avg. Volume: 8,354,363
• PEG Ratio: 3.05
• Price to Book (P/B): 6.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.19
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 1.09
• Enterprise Value/Gross Profit: 7.37
• Enterprise Value/Ebitda: 3.51
• 1Y Price Target: $174.46
• Price Target Upside: 7.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 81 Outperform
• Price Target: $177.00 ▲(9.04%Upside)

Qualcomm's overall stock score of 81 reflects strong financial performance, strategic technical advancements, and a balanced valuation. The most significant factors include robust profitability, strategic growth in automotive and IoT sectors, and a positive impact from the Alphawave acquisition. While licensing revenue remains flat and global trade uncertainties persist, Qualcomm's diversified growth strategy and commitment to shareholder returns present a favorable investment outlook.

Positive Factors

Diversification Strategy

The company continues to diversify its semiconductor revenue streams, and AI PCs, data center silicon, Automotive and IoT could contribute 40% of QCT revenues by 2030 versus 27% currently.

Growth Potential

IoT and Automotive have significant growth potential and were up 27% and 59% YoY in the most recent quarter.

Valuation and Growth

The Buy rating is supported by low valuation, trading at 12x P/E vs. historical average of 15-18x, and also by long term growth initiatives.

Negative Factors

Geopolitical Risks

The potential for indirect effects through softer consumer demand and the higher proportion of sales to China may be concerns if US-China tensions escalate further.

Smartphone Market

The handset market is mature, and there is no major growth catalyst envisioned.

Smartphone Revenue

Smartphones, that represent 73% of QCT revenues, have peaked in our view, with near term outlook more challenged.

Qualcomm Business Overview & Revenue Model

Company Description

Qualcomm Incorporated (QCOM) is a global leader in the development and commercialization of foundational technologies for the wireless industry. The company is known for its pioneering work in mobile communications and is a key player in the 5G technology space. Qualcomm's core products and services include mobile processors, modems, and other semiconductor components that are essential for smartphones, tablets, and other wireless devices. The company also offers technology licensing and services that enable the global mobile ecosystem to innovate and expand.

How the Company Makes Money

Qualcomm makes money primarily through two business segments: Qualcomm CDMA Technologies (QCT) and Qualcomm Technology Licensing (QTL). The QCT segment generates revenue by designing and supplying integrated circuits and system software based on 3G, 4G, and 5G technologies for use in mobile devices, wireless networks, and consumer electronics. The company's QTL segment earns revenue by licensing its portfolio of patents and intellectual property to mobile device manufacturers, allowing them to build devices that comply with various wireless standards. Significant partnerships with major tech companies and OEMs, as well as its leadership in advancing 5G technology, contribute to Qualcomm's earnings. Additionally, the company's strategic investments in areas like automotive, IoT, and AI provide potential growth opportunities.

Qualcomm Financial Statement Overview

Summary

Qualcomm exhibits robust financial health characterized by strong profitability, efficient cash flow management, and a balanced capital structure. The company shows consistent revenue growth and profitability, with efficient leverage and a strong equity base.

Income Statement

Qualcomm demonstrates strong profitability with a gross profit margin of 55.7% and a net profit margin of 26.1% for TTM (Trailing-Twelve-Months). The company shows a robust revenue growth rate of 8.5% from the previous year. EBIT and EBITDA margins are healthy at 27.3% and 31.4%, respectively, indicating efficient operational management. The income statement reflects solid financial performance, driven by consistent revenue growth and strong profitability metrics.

Balance Sheet

Qualcomm's balance sheet is stable with a debt-to-equity ratio of 0.53, reflecting moderate leverage. The return on equity (ROE) for TTM is 39.8%, indicating effective use of equity to generate profits. The equity ratio stands at 50.1%, suggesting a balanced asset financing structure. Despite moderate debt levels, the company's strong equity position and high ROE underscore its financial health.

Cash Flow

The cash flow analysis reveals a positive trajectory with a free cash flow growth rate of 4.9%. The operating cash flow to net income ratio is 1.16, and the free cash flow to net income ratio is 1.06, indicating strong cash generation relative to earnings. Qualcomm's ability to generate cash efficiently supports its financial stability and growth prospects.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	42.28B	38.96B	35.82B	44.20B	33.57B	23.53B
Gross Profit	23.55B	21.90B	19.95B	25.57B	19.30B	14.28B
EBITDA	13.28B	12.74B	10.46B	16.56B	11.37B	7.62B
Net Income	11.04B	10.14B	7.23B	12.94B	9.04B	5.20B
Balance Sheet
Total Assets	55.37B	55.15B	51.04B	49.01B	41.24B	35.59B
Cash, Cash Equivalents and Short-Term Investments	13.85B	13.30B	11.32B	6.38B	12.41B	11.21B
Total Debt	14.62B	14.63B	15.40B	15.48B	15.74B	15.73B
Total Liabilities	27.64B	28.88B	29.46B	31.00B	31.29B	29.52B
Stockholders Equity	27.73B	26.27B	21.58B	18.01B	9.95B	6.08B
Cash Flow
Free Cash Flow	11.71B	11.16B	9.85B	6.83B	8.65B	4.41B
Operating Cash Flow	12.84B	12.20B	11.30B	9.10B	10.54B	5.81B
Investing Cash Flow	-3.39B	-3.62B	762.00M	-5.80B	-3.36B	-5.26B
Financing Cash Flow	-11.44B	-9.27B	-6.66B	-7.20B	-6.80B	-5.71B

Qualcomm Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 162.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 162.32 is above the 20-day moving average (MA) of 155.56, above the 50-day MA of 149.80, and above the 200-day MA of 157.05, indicating a bullish trend. The MACD of 2.86 indicates Negative momentum. The RSI at 66.95 is Neutral, neither overbought nor oversold. The STOCH value of 87.17 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	81 Outperform	$178.23B	16.53	42.21%	2.19%	16.15%	32.28%
ADI	81 Outperform	$119.42B	65.51	5.21%	1.62%	-6.17%	-14.16%
AMD	80 Outperform	$224.60B	101.54	3.90%	―	21.71%	99.00%
TXN	77 Outperform	$195.86B	40.85	29.04%	2.52%	-4.48%	-17.82%
NXPI	75 Outperform	$58.40B	24.92	26.02%	1.75%	-7.21%	-15.29%
Sector *	50 Neutral	AU$1.48B	1.28	-28.24%	3.26%	16.24%	-7.89%
INTC	47 Neutral	$95.44B	―	-18.66%	2.29%	-3.97%	-562.40%

Qualcomm Corporate Events

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.

The most recent analyst rating on (QCOM) stock is a Hold with a $170.00 price target. To see the full list of analyst forecasts on Qualcomm stock, see the QCOM Stock Forecast page.

Qualcomm Issues $1.5 Billion in Senior Notes

On May 21, 2025, Qualcomm Incorporated executed an Officers’ Certificate for the sale of $1.5 billion in senior unsecured notes, with varying maturity dates and interest rates, as part of its financial strategy to manage debt and capital. The company also entered into an underwriting agreement on May 19, 2025, with major financial institutions to facilitate this public offering, reflecting its ongoing efforts to leverage capital markets for operational and strategic growth.

The most recent analyst rating on (QCOM) stock is a Hold with a $170.00 price target. To see the full list of analyst forecasts on Qualcomm stock, see the QCOM Stock Forecast page.

Qualcomm Appoints Christopher Young to Board of Directors

On May 12, 2025, Qualcomm‘s Board of Directors elected Christopher D. Young, a former executive from Microsoft, to join the Board. Young will serve until the next annual stockholders’ meeting and will be part of the HR and Compensation Committee. His appointment involves no special arrangements or transactions with the company, and he will receive compensation under Qualcomm’s 2025 Director Compensation Plan, including 1,748 deferred stock units for his service.

The most recent analyst rating on (QCOM) stock is a Hold with a $170.00 price target. To see the full list of analyst forecasts on Qualcomm stock, see the QCOM Stock Forecast page.