Qualcomm (QCOM) AI Stock Analysis

• Market Cap: $159.63B
• Dividend Yield: 2.31%
• Average Volume (3M): 8.94M
• Price to Earnings (P/E): 14.8
• Beta (1Y): 1.63
• Revenue Growth: 16.15%
• EPS Growth: 32.28%
• Country: US
• Employees: 49,000
• Sector: Technology
• Sector Strength: 77
• Industry: Semiconductors
• EPS (TTM): 2.85
• Shares Outstanding: 1,098,000,000
• 10 Day Avg. Volume: 8,010,712
• 30 Day Avg. Volume: 8,942,893
• PEG Ratio: 2.92
• Price to Book (P/B): 5.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.62
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 1.05
• Enterprise Value/Gross Profit: 7.09
• Enterprise Value/Ebitda: 3.37
• 1Y Price Target: $178.31
• Price Target Upside: 22.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 80 Outperform
• Price Target: $170.00 ▲( 16.93% Upside)

Qualcomm's strong financial performance and strategic growth in automotive and IoT sectors drive its high score. The company's solid earnings call, with growth surpassing expectations, further boosts investor confidence. Technical indicators suggest neutral momentum, while valuation metrics appear fair. Despite some challenges in licensing revenue and trade uncertainties, Qualcomm's strategic focus and financial health support a positive outlook.

Positive Factors

Revenue Growth

Qualcomm's diversification into Auto and IoT is progressing well, with significant revenue growth in both sectors.

Share Buyback

Management is buying back shares, indicating confidence in the company's valuation.

Strategic Partnerships

Recently announced extension of Apple partnership to 2026 ensures earnings visibility for the handset segment.

Negative Factors

Apple Market Share

Concerns persist about the decline in Qualcomm's share in Apple's 2025 iPhone launch and unresolved issues with Huawei.

Competitive Pressure

Mediatek, the largest Chinese competitor to Qualcomm, continues to move up market into premium tier devices which could lead to share loss for Qualcomm.

Market Guidance

Investors were disappointed by the in-line guidance, as they expected more immediate upside potential.

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 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. These metrics highlight Qualcomm's solid position in the semiconductor industry, with well-managed financial operations and growth potential.

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
	EBIT
11.55B	10.07B	7.79B	15.86B	9.79B	6.25B
	EBITDA
13.28B	12.74B	10.46B	16.56B	11.37B	7.62B
	Net Income Common Stockholders
11.04B	10.14B	7.23B	12.94B	9.04B	5.20B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
13.85B	13.30B	11.32B	6.38B	12.41B	11.21B
	Total Assets
55.37B	55.15B	51.04B	49.01B	41.24B	35.59B
	Total Debt
14.62B	14.63B	15.40B	15.48B	15.74B	15.73B
	Net Debt
7.42B	6.79B	6.95B	12.71B	8.63B	9.02B
	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: Negative
• Last Price: 145.38
• 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 145.38 is below the 20-day moving average (MA) of 147.25, below the 50-day MA of 146.77, and below the 200-day MA of 159.39, indicating a bearish trend. The MACD of 1.41 indicates Negative momentum. The RSI at 46.61 is Neutral, neither overbought nor oversold. The STOCH value of 28.34 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
AMD	81 Outperform	$179.51B	81.15	3.90%	―	21.71%	99.00%
QCOM	80 Outperform	$159.63B	14.80	42.21%	2.31%	16.15%	32.28%
ADI	76 Outperform	$105.11B	57.69	5.21%	1.77%	-6.17%	-14.16%
NXPI	75 Outperform	$48.54B	20.72	26.02%	2.06%	-7.21%	-15.29%
TXN	75 Outperform	$160.16B	33.40	29.04%	2.98%	-4.48%	-17.82%
Sector *	61 Neutral	$11.29B	10.07	-7.05%	2.96%	7.47%	-10.75%
INTC	45 Neutral	$89.64B	―	-18.66%	2.43%	-3.97%	-562.40%

Qualcomm Corporate Events

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.