Latest news with #QCOM
Yahoo
5 days ago
- Business
- Yahoo
Is Qualcomm Stock (QCOM) a Hidden Gem in Deep Value Territory?
Qualcomm (QCOM) stock has taken a beating, sliding more than 30% over the past year, weighed down by investor concerns over smartphone market slowdowns and geopolitical tensions impacting chip demand. Yet the company's latest numbers tell a different story, showcasing robust growth, record revenues, and no signs of stalling. In fact, Qualcomm's current valuation might be a screaming buy given its strong fundamentals and tailwinds in multiple sectors, hinting at serious upside for investors willing to look past the noise. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter My analysis indicates QCOM is set for a strong recovery following a year of sideways trade. Qualcomm's dominance in 5G technology remains its primary growth driver. In its latest Q2 report, the company achieved $9.5 billion in revenue from its Qualcomm CDMA Technologies (QCT) segment, up 18% year-over-year, driven by its Snapdragon processors and 5G modem platforms like the X85. These chips power premium smartphones from brands like Xiaomi, which recently extended its multi-year deal with Qualcomm, ensuring its flagship devices use Snapdragon 8-series chips through at least 2030. With global 5G connections projected to hit 2 billion by 2025, Qualcomm's intellectual property and licensing arm (QTL) continues to vacuum in royalties, contributing $1.3 billion in Q2 alone. Also, Qualcomm's 5G technology is now making inroads beyond mobile devices, powering transformative applications in new sectors. The company has secured partnerships to integrate 5G into private networks for industrial automation, enabling real-time data processing for smart factories, as seen in collaborations with firms like Siemens (SIE). Moreover, its chips are now driving connectivity in smart city projects, with deployments in urban infrastructure expected to grow as global investments in smart cities reach $1.8 trillion by 2030. Besides its core 5G offerings, Qualcomm's diversification into automotive and IoT is paying off big time. In Q2, its automotive segment soared 59% year-over-year, generating notable revenue as carmakers adopt Snapdragon Digital Chassis for connected and autonomous vehicles. Partnerships with major automakers, including contracts to supply chips for next-gen electric cars, are pretty interesting (and relevant to the valuation argument I will make later), as they show Qualcomm's pivot from smartphone reliance. The IoT segment wasn't far behind, growing 27% as demand for smart home devices and industrial IoT solutions surges. By branching out and reducing its dependence on the cyclical smartphone market, Qualcomm is stripping the volatility out of its cash flows. For example, its chips are now integral to automotive safety systems and infotainment, markets expected to grow at a 10% CAGR through 2030. Qualcomm's automotive revenue is projected to reach $8 billion annually by 2030, per analyst estimates, bolstering its long-term growth as these segments scale. Finally, Qualcomm is turning heads with a renewed focus on AI and data centers. At Computex 2025, CEO Cristiano Amon shared plans for the company's return to the data center market through a partnership with Nvidia (NVDA). Together, they're developing custom Arm-based CPUs built for AI workloads. The goal is to offer a more energy-efficient alternative and take on established players like Intel (INTC) and AMD (AMD). Look at Qualcomm's chips, which are starting to penetrate the PC market. Q2 results showed solid growth in laptops built for AI features. Qualcomm's focus on on-device AI, which improves privacy and efficiency, is already drawing interest from major partners like Microsoft (MSFT). With the AI chip market expected to grow around 30% annually through 2030, Qualcomm's early push could lead to strong new revenue, expand its business, and improve profit margins. Despite these wins, Qualcomm's stock is trading in what looks like deep value territory. The company has seen its shares decline consistently over the past year, and yet its profitability surges. EPS jumped 30% to $2.85 in Q2, well ahead of forecasts, leaving the stock trading at just 12x this year's projected earnings. At this multiple, I believe the tech giant is priced like a bargain. Historically, Qualcomm's cyclical exposure justified lower multiples, but today's 5G, automotive, and AI tailwinds are structural, not fleeting. These trends suggest Qualcomm's earnings growth, expected at 10-12% annually over the next five years, could drive significant upside. If the market begins to value Qualcomm more like its tech peers, many of which command premium valuations due to their recurring revenue models, and Qualcomm is now showing similar characteristics, then the combination of earnings growth and a higher valuation multiple could drive significant gains. Following its extended selloff, Wall Street analysts are more optimistic about QCOM's prospects. Specifically, QCOM stock features a Moderate Buy consensus rating based on eight Buy, eight Hold, and one Sell recommendations over the past three months. At $178.31, the average QCOM stock price target implies an upside potential of ~23% from the current levels. Qualcomm's stock may be down, but it's hardly out. With strong leadership in 5G, rapid growth in automotive and IoT, and an ambitious move into AI and data centers, the company is firing on all cylinders. At what appears to be a bargain valuation, the potential for earnings growth and multiple expansion is hard to overlook. While the semiconductor industry is known for its cyclical nature, Qualcomm's diversified growth and solid fundamentals make it an attractive option for value-focused investors seeking meaningful upside. Disclaimer & DisclosureReport an Issue Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
QCOM Mixed Growth Outlook Leads Seaport to Start Coverage with Neutral Call
Seaport Research analyst Jay Goldberg recently initiated coverage of QUALCOMM Incorporated (NASDAQ:QCOM) with a Neutral rating and no price target. QCOM develops and sells foundational technologies for the wireless industry. In an investor note, the analyst noted that Qualcomm's core market was not growing, and it was losing share there on multiple fronts. The analyst added that the company's efforts to diversify beyond mobile were mixed and would all take years to materialize. Seaport saw a lack of any serious near-term catalyst for the shares. A technician testing the latest 5G device, demonstrating the company's commitment to innovation. At the end of April, the firm forecasted fiscal Q3 revenues of $9.9 billion to $10.7 billion and non-GAAP EPS of $2.60 to $2.80. QCT revenues are expected to range between $8.7 billion and $9.3 billion, with year-over-year growth of approximately 12%, led by handsets, IoT, and automotive segments. This includes 10% growth in handset revenues and 15%-20% growth in IoT and automotive revenues. CFO Akash Palkhiwala has acknowledged ongoing monitoring of macroeconomic conditions, including tariffs, which are incorporated into the guidance. While we acknowledge the potential of QCOM, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than QCOM and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 33 Most Important AI Companies You Should Pay Attention To and 30 Best AI Stocks to Buy According to Billionaires Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27-05-2025
- Business
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Alphawave Talks Boost Qualcomm Stock Ahead
Qualcomm's (NASDAQ:QCOM) stock got an early boost todayup just over 2% before markets openedafter it snagged a fresh deadline to firm up its roughly $1.4 billion bid for U.K. chip IP specialist Alphawave. Earlier, QCOM had dipped about 1.35% during normal hours, but word that Alphawave's put up or shut up clock has been reset to June 2 (the third push-out since late April) lit a spark under shares. Alphawave's valuation clocks in at about 1.1 billionaround $1.4 billionand its own stock jumped 8% on the news, even though no official offer has landed yet. Warning! GuruFocus has detected 5 Warning Signs with QCOM. Why it matters: Alphawave's tech is a linchpin for AI processor connections, which lines up perfectly with Qualcomm's big-picture AI roadmap. As J.P. Morgan's Samik Chatterjee points out, snapping up Alphawave would slot neatly alongside QCOM's Nuvia buy, beefing up its data-center connectivity chops and turbocharging its CPU and AI inference play. For investors, the potential payoff is clearseal this deal, and Qualcomm could speed up its push into next-gen data centers and AI hardware, opening fresh revenue channels just as demand for high-speed, low-latency chips ramps up. Now all eyes are on June 2: will Qualcomm finally make a formal bid, or will Alphawave buy more time? Either way, today's extension keeps the takeover dramaand the stock's momentumright on track. The chart above shows Qualcomm Inc. (NASDAQ:QCOM) with a 12-month average price target of $177.64 as of May 27, 2025, representing a projected upside of 22.19% from its current level. The highest analyst target stands at $270, suggesting strong bullish sentiment, while the lowest forecast is $140, indicating downside risk. The intrinsic or GF Value is pegged at $160.10, hinting that the stock may be slightly undervalued based on current fundamentals. Overall, analysts anticipate moderate growth, with a wide range reflecting varied views on the chipmaker's prospects. This article first appeared on GuruFocus.
Yahoo
27-05-2025
- Business
- Yahoo
Alphawave Talks Boost Qualcomm Stock Ahead
Qualcomm's (NASDAQ:QCOM) stock got an early boost todayup just over 2% before markets openedafter it snagged a fresh deadline to firm up its roughly $1.4 billion bid for U.K. chip IP specialist Alphawave. Earlier, QCOM had dipped about 1.35% during normal hours, but word that Alphawave's put up or shut up clock has been reset to June 2 (the third push-out since late April) lit a spark under shares. Alphawave's valuation clocks in at about 1.1 billionaround $1.4 billionand its own stock jumped 8% on the news, even though no official offer has landed yet. Warning! GuruFocus has detected 5 Warning Signs with QCOM. Why it matters: Alphawave's tech is a linchpin for AI processor connections, which lines up perfectly with Qualcomm's big-picture AI roadmap. As J.P. Morgan's Samik Chatterjee points out, snapping up Alphawave would slot neatly alongside QCOM's Nuvia buy, beefing up its data-center connectivity chops and turbocharging its CPU and AI inference play. For investors, the potential payoff is clearseal this deal, and Qualcomm could speed up its push into next-gen data centers and AI hardware, opening fresh revenue channels just as demand for high-speed, low-latency chips ramps up. Now all eyes are on June 2: will Qualcomm finally make a formal bid, or will Alphawave buy more time? Either way, today's extension keeps the takeover dramaand the stock's momentumright on track. The chart above shows Qualcomm Inc. (NASDAQ:QCOM) with a 12-month average price target of $177.64 as of May 27, 2025, representing a projected upside of 22.19% from its current level. The highest analyst target stands at $270, suggesting strong bullish sentiment, while the lowest forecast is $140, indicating downside risk. The intrinsic or GF Value is pegged at $160.10, hinting that the stock may be slightly undervalued based on current fundamentals. Overall, analysts anticipate moderate growth, with a wide range reflecting varied views on the chipmaker's prospects. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-05-2025
- Business
- Yahoo
QUALCOMM Incorporated (QCOM)'s Yield Catches Wolfe's Eye
Traditionally, tech stocks weren't known for offering dividends, but that's been changing as more companies in the sector begin returning capital to shareholders this way. This shift has drawn the attention of dividend-focused investors. Wolfe Research recently highlighted this trend by identifying stocks that fall into the second-highest tier of dividend yields—those paying out between 60% and 80% of the top yields—while also maintaining relatively low price-to-earnings ratios. This middle tier of dividend payers can be appealing to income investors because the highest-yielding stocks often face a greater risk of dividend cuts if their financial health deteriorates. QUALCOMM Incorporated (NASDAQ:QCOM) appeared on Wolfe's list. The company offers a dividend yield of 2.4%, and its stock has dipped only about 5% so far this year. Its forward P/E ratio stands at 12.55. Based in California, QUALCOMM Incorporated (NASDAQ:QCOM) is a global player in semiconductors, software, and wireless technology services. It has a strong track record when it comes to dividends, having increased its payouts for 21 consecutive years. In the latest quarter alone, QUALCOMM returned $2.7 billion to shareholders, including $938 million through dividends. Other analysts are also optimistic about QUALCOMM Incorporated (NASDAQ:QCOM). Nearly half of those covering the stock rate it as a Buy or Strong Buy, and LSEG data suggests the stock could climb nearly 20% from current levels. While we acknowledge the potential of QCOM as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than QCOM but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the . READ MORE: and Disclosure. None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
