Qualcomm (QCOM) AI Stock Analysis

• Market Cap: $175.11B
• Dividend Yield: 2.23%
• Average Volume (3M): 8.47M
• Price to Earnings (P/E): 16.2
• Beta (1Y): 1.62
• Revenue Growth: 16.15%
• EPS Growth: 32.28%
• Country: US
• Employees: 49,000
• Sector: Technology
• Sector Strength: 82
• Industry: Semiconductors
• EPS (TTM): 2.85
• Shares Outstanding: 1,098,000,000
• 10 Day Avg. Volume: 7,939,347
• 30 Day Avg. Volume: 8,471,769
• PEG Ratio: 0.24
• Price to Book (P/B): 7.47
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.68
• Enterprise Value/Market Cap: 0.84
• Enterprise Value/Revenue: 0.92
• Enterprise Value/Gross Profit: 6.25
• Enterprise Value/Ebitda: 2.98
• 1Y Price Target: $177.92
• Price Target Upside: 12.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 80 Outperform
• Price Target: $179.00 ▲(12.79%Upside)

Qualcomm's overall stock score is driven by its solid financial performance and strategic growth initiatives, particularly in the automotive and IoT sectors. The positive sentiment from the earnings call and strategic acquisition further supports its market position. While technical indicators suggest caution, the company's strong fundamentals and reasonable valuation underpin a favorable outlook.

Positive Factors

5G Opportunities

Qualcomm is a beneficiary of the growing 5G opportunities in the premium handset, automotive, IoT, and edge networking segments.

Acquisition Strategy

The acquisition of Alphawave aligns with Qualcomm's long-term diversification plan into high-growth segments.

Capital Return Policy

Qualcomm's consistent capital return policy and commitment to raise its capital return target to 100% of its free cash flows reflect its strong cash flow generation.

Negative Factors

Apple Modem Loss

The Apple modem loss is well-known, has been explicitly telegraphed, is now increasingly in numbers, and is more than priced in.

Market Share Challenges

Qualcomm's core market is not growing, and it is losing share there on multiple fronts.

US-China Tensions

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.

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 shows robust financial health with strong profitability, efficient cash flow management, and a balanced capital structure. High margins and revenue growth demonstrate effective operational management, despite moderate leverage.

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: Positive
• Last Price: 158.70
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 158.7 is above the 20-day moving average (MA) of 150.56, above the 50-day MA of 144.53, and above the 200-day MA of 157.44, indicating a neutral trend. The MACD of 2.81 indicates Negative momentum. The RSI at 57.61 is Neutral, neither overbought nor oversold. The STOCH value of 73.88 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
AMD	81 Outperform	$196.42B	86.86	3.90%	―	21.71%	99.00%
QCOM	80 Outperform	$175.11B	16.24	42.21%	2.23%	16.15%	32.28%
ADI	77 Outperform	$115.40B	63.31	5.21%	1.70%	-6.17%	-14.16%
NXPI	77 Outperform	$54.92B	23.44	26.02%	1.86%	-7.21%	-15.29%
TXN	74 Outperform	$181.41B	37.84	29.04%	2.72%	-4.48%	-17.82%
Sector *	62 Neutral	$11.92B	10.48	-7.50%	2.95%	7.40%	-8.18%
INTC	60 Neutral	$96.31B	―	-18.66%	2.41%	-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.