Qualcomm introduces advanced Snapdragon G Series platforms to deliver an immersive gaming experience to end users.
Upgraded Qualcomm Incorporated stock to a "Buy" with a fair value of $185 per share, driven by the launch of the X85 modem and recent stock sell-off. The X85 modem, launched on March 3, offers 30% faster AI inference efficiency and could outperform Apple's in-house modem, capturing AI-related mobile device growth. QCOM reported strong Q1 FY25 results, with 18% revenue growth and 24% adj. EPS growth, driven by handset, automotive, and IoT segments.
Qualcomm is a STRONG BUY due to its growing market opportunities, robust financials, and significant undervaluation, despite potential risks from tariffs and losing Apple as a customer. The company's expansion into the automotive sector, with high projected growth rates, further solidifies its promising future and revenue potential. Qualcomm's financial health is strong, with a 5-year revenue CAGR of 13.72%, net income CAGR of 23.45%, and FCF CAGR of 33.17%, alongside low debt levels.
QCOM is inherently undervalued with strong growth prospects in numerous end markets, despite the potential geopolitical/ macroeconomic headwinds. Most importantly, we believe that the management is likely to achieve the aggressive non-handset revenue guidance of $22B in 2029, as observed in the growing design wins. These reasons are also why QCOM is likely to outperform the pessimistic consensus forward estimates, with it offering rich double-digits upside potential and dividend income growth.
Qualcomm's stock is a buy due to its attractive valuation, strong earnings, and successful diversification into automotive, PC, and mixed reality markets. QCOM stock has held firm at the $150 support level, indicating a potential bottom and offering a compelling entry point for investors. Qualcomm's fundamentals are strong, with a P/E below 14x, no net debt, a 22% ROIC, and 21 years of consecutive dividend growth.
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QCOM appears to be treading in the middle of the road and investors could be better off if they trade with caution.
Qualcomm (QCOM -0.78%) management held a question-and-answer session with Wall Street analysts, which provided valuable insights for investors.
Qualcomm (QCOM 0.28%) expects to benefit from a stimulus implemented in China to start 2025.
Cristiano Amon, CEO of Qualcomm, said TSMC's investment in U.S. chip manufacturing will be important for the economy. Trump announced on Monday that TSMC would invest $100 billion in the U.S. which would go toward building more chip fabrication plants in Arizona.
Qualcomm CEO Cristiano Amon says TSMC's investment in the U.S. is "great news" and adds that he's excited about current macro trends in the industry that are driving Qualcomm's business.