Qualcomm (QCOM) AI Stock Analysis

• Market Cap: $188.83B
• Dividend Yield: 2.01%
• Average Volume (3M): 6.78M
• Price to Earnings (P/E): 35.2
• Beta (1Y): 1.57
• Revenue Growth: 13.66%
• EPS Growth: -45.40%
• Country: US
• Employees: 49,000
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 3.00
• Shares Outstanding: 1,071,000,000
• 10 Day Avg. Volume: 3,382,314
• 30 Day Avg. Volume: 6,780,423
• PEG Ratio: -0.73
• Price to Book (P/B): 8.54
• Price to Sales (P/S): 4.09
• P/FCF Ratio: 14.13
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 4.19
• Enterprise Value/Gross Profit: 7.56
• Enterprise Value/Ebitda: 12.71
• 1Y Price Target: $198.93
• Price Target Upside: 9.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: $199.00 ▲(9.07% Upside)

Qualcomm's overall stock score reflects its strong financial performance and positive earnings call outcomes, which are the most significant factors. The technical analysis supports a positive trend, while the valuation indicates potential overvaluation. Despite some challenges, the company's strategic achievements and growth in key segments contribute to a favorable outlook.

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 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

Qualcomm demonstrates strong financial performance with impressive revenue growth and efficient cash flow management. While profitability margins have faced some pressure, the company maintains a stable balance sheet with moderate leverage. Continued focus on cost management and strategic investments could further enhance financial health.

Income Statement

Qualcomm's income statement shows strong revenue growth of 34.14% in the most recent year, indicating robust demand and market position. The gross profit margin of 55.43% and EBIT margin of 30.09% reflect efficient cost management and operational efficiency. However, the net profit margin decreased to 12.51% from 26.03% the previous year, suggesting increased expenses or other financial pressures.

Balance Sheet

The balance sheet reveals a solid equity base with a debt-to-equity ratio of 0.70, indicating moderate leverage and financial stability. Return on equity stands at 26.13%, showcasing effective use of equity to generate profits. However, the equity ratio of 42.29% suggests room for improvement in asset financing through equity.

Cash Flow

Cash flow analysis highlights a significant free cash flow growth of 38.88%, reflecting strong cash generation capabilities. The operating cash flow to net income ratio of 1.53 indicates healthy cash flow relative to earnings. The free cash flow to net income ratio of 0.91 suggests efficient conversion of earnings into cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	44.28B	44.28B	38.96B	35.82B	44.20B	33.57B
Gross Profit	24.55B	24.55B	21.90B	19.95B	25.57B	19.30B
EBITDA	14.60B	14.93B	12.74B	9.95B	17.25B	11.37B
Net Income	5.54B	5.54B	10.14B	7.23B	12.94B	9.04B
Balance Sheet
Total Assets	50.14B	50.14B	55.15B	51.04B	49.01B	41.24B
Cash, Cash Equivalents and Short-Term Investments	10.15B	10.15B	13.30B	11.32B	6.38B	12.41B
Total Debt	14.81B	14.81B	15.44B	16.07B	16.16B	16.30B
Total Liabilities	28.94B	28.94B	28.88B	29.46B	31.00B	31.29B
Stockholders Equity	21.21B	21.21B	26.27B	21.58B	18.01B	9.95B
Cash Flow
Free Cash Flow	12.82B	12.82B	11.16B	9.85B	6.83B	8.65B
Operating Cash Flow	14.01B	14.01B	12.20B	11.30B	9.10B	10.54B
Investing Cash Flow	-800.00M	-800.00M	-3.62B	762.00M	-5.80B	-3.36B
Financing Cash Flow	-13.20B	-13.20B	-9.27B	-6.66B	-7.20B	-6.80B

Qualcomm Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 182.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 182.45 is above the 20-day moving average (MA) of 175.93, above the 50-day MA of 173.24, and above the 200-day MA of 157.98, indicating a bullish trend. The MACD of 1.20 indicates Negative momentum. The RSI at 64.40 is Neutral, neither overbought nor oversold. The STOCH value of 59.89 is Neutral, 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	80 Outperform	$188.83B	35.16	23.34%	2.01%	13.66%	-45.40%
TXN	78 Outperform	$160.98B	32.32	29.60%	3.11%	9.90%	1.65%
ADI	78 Outperform	$135.78B	60.75	6.57%	1.43%	16.89%	39.29%
AMD	73 Outperform	$359.93B	105.94	5.32%	―	31.83%	80.45%
NXPI	70 Neutral	$56.34B	27.49	21.19%	1.79%	-6.81%	-23.16%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
INTC	58 Neutral	$187.79B	3,777.36	0.19%	―	-1.49%	―

Qualcomm Corporate Events

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.