Qualcomm Inc (NASDAQ:QCOM) stock was last seen 1.1% lower to trade at $128.88, after receiving a downgrade at Bernstein to "market perform" from "outperform," in addition to a price-target cut to $140 from $175.
QCOM powers a shift to AI-driven smart cameras, enabling real-time insights, scalable management and smarter security across industries.
Qualcomm Incorporated QCOM has been witnessing healthy traction in the automotive segment over the past few quarters. During the first quarter of 2026, the company reported a $1.1 billion in revenues from this segment, up 15% year over year.
Qualcomm is undervalued at $131.28, trading at a 9.3% FCF yield, with a DCF-derived intrinsic value of $137.40. QCOM's Snapdragon platform and diversification into automotive, IoT, and data centers offer significant growth optionality beyond handset modems. Apple's modem exit and MediaTek competition pose risks, but QTL royalties and a $45B automotive design-win pipeline provide downside protection.
Qualcomm lifts dividend 3.4% and boosts buybacks on strong cash flow, but falling estimates and weak stock performance raise investor questions.
What an awful past year it's been for those patient shareholders in Qualcomm (NASDAQ:QCOM).
Qualcomm Incorporated is deeply undervalued, trading at a 46% P/E discount to the sector despite record revenues and robust buybacks. QCOM's diversification—especially in automotive, with $1.1B in QCT revenues and >35% growth expected—positions it to offset Apple-related headwinds. Management's $20B buyback and dividend hike signal strong confidence in QCOM's long-term prospects amid near-term DRAM shortages and client transitions.
Qualcomm (QCOM)—the leading designer of mobile chipsets and licensor of 3G, 4G, and 5G cellular technologies—has experienced a 5-day losing streak, with total losses during this time reaching -6.3%. The company's market capitalization has decreased by approximately $9 billion over the past five trading days, and it currently stands at $138 billion.
Qualcomm faces near-term headwinds from smartphone memory shortages, driving a projected -15.1% decline in Handset segment revenue for 2026. Despite smartphone weakness, QCOM maintains leadership in premium smartphone SoCs, with Snapdragon 8 Elite Gen 5 outperforming competitors in multi-core benchmarks. Automotive and IoT segments are projected to grow at 22% and 21% CAGRs through FY2029, partially offsetting Handset weakness and supporting long-term growth.
Zacks.com users have recently been watching Qualcomm (QCOM) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
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Qualcomm (QCOM) could be a great addition to your portfolio, thanks to its substantial cash yield, solid fundamentals, and reasonable valuation. Such companies can leverage cash to drive further revenue growth or return value to their shareholders through dividends or stock repurchases.