Qualcomm (QCOM) AI Stock Analysis

• Market Cap: $174.89B
• Dividend Yield: 2.13%
• Average Volume (3M): 12.28M
• Price to Earnings (P/E): 32.6
• Beta (1Y): 1.62
• 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: 9,716,132
• 30 Day Avg. Volume: 12,283,533
• 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: 1.06
• Enterprise Value/Revenue: 4.19
• Enterprise Value/Gross Profit: 7.56
• Enterprise Value/Ebitda: 12.71
• 1Y Price Target: $198.00
• Price Target Upside: 21.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18
• EPS Forecast (FY): 12.28
• Revenue Forecast (FY): $45.56B

• Rating: 80 Outperform
• Price Target: $199.00 ▲(21.86% 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 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 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: 163.30
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 163.3 is below the 20-day moving average (MA) of 172.59, below the 50-day MA of 169.42, and above the 200-day MA of 156.59, indicating a neutral trend. The MACD of -1.63 indicates Positive momentum. The RSI at 44.78 is Neutral, neither overbought nor oversold. The STOCH value of 19.02 is Positive, 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	$174.89B	32.57	23.34%	2.13%	13.66%	-45.40%
ADI	75 Outperform	$114.29B	59.10	5.65%	1.67%	7.08%	18.39%
AMD	74 Outperform	$331.76B	100.71	5.32%	―	31.83%	80.45%
TXN	68 Neutral	$144.83B	29.08	29.60%	3.45%	9.90%	1.65%
NXPI	63 Neutral	$48.16B	23.50	21.19%	2.20%	-6.81%	-23.16%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
INTC	56 Neutral	$164.56B	3,254.72	0.19%	―	-1.49%	―

Qualcomm Corporate Events

Qualcomm’s Earnings Call Highlights Robust Q4 Performance

Qualcomm’s recent earnings call presented a generally positive sentiment, highlighting the company’s robust performance in fiscal Q4. The call underscored record revenues in the automotive sector and growth in IoT, with Qualcomm surpassing its revenue and EPS guidance. Notable achievements in AI and data centers were also discussed, although challenges such as a significant non-cash charge due to tax legislation and uncertain future prospects with a major Android customer were acknowledged. Overall, the sentiment suggests a positive outlook despite these hurdles.

Qualcomm Reports Strong Fiscal 2025 Performance

Qualcomm Incorporated is a leading technology company specializing in semiconductor and telecommunications equipment, known for its Snapdragon platforms and Qualcomm Dragonwing products that drive innovation in AI, computing, and connectivity across various industries.

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.

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.

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.

The most recent analyst rating on (QCOM) stock is a Buy with a $181.00 price target. To see the full list of analyst forecasts on Qualcomm stock, see the QCOM Stock Forecast page.