Qualcomm Incorporated remains a buy due to its leadership in edge AI and deepening collaborations with Xiaomi and Advantech, despite recent share price weakness. Q3 results showed slowing top-line growth and soft Q4 guidance, reflecting ongoing consumer headwinds and a challenging demand environment for electronics. Profitability was robust, with expanding margins and strong EPS growth, though cash generation weakened and buybacks surged, raising sustainability questions.
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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.
QUALCOMM Incorporated (NASDAQ:QCOM ) JP Morgan Hardware & Semis Management Access Forum Conference Call August 13, 2025 3:10 PM ET Company Participants Akash Palkhiwala - CFO & COO Conference Call Participants Samik Chatterjee - JPMorgan Chase & Co, Research Division Samik Chatterjee Great. Thank you, everyone, for being here.
QUALCOMM Incorporated (NASDAQ:QCOM ) Oppenheimer 28th Annual Technology, Internet & Communications Conference August 12, 2025 3:45 PM ET Company Participants Nakul Duggal - Senior VP and GM of Automotive & Cloud Computing of Qualcomm Technologies, Inc. Conference Call Participants Richard Ewing Schafer - Oppenheimer & Co. Inc., Research Division Richard Ewing Schafer Great. Thanks. Welcome, everybody.
Tech giant Qualcomm Inc. NASDAQ: QCOM has once again been testing the patience of even its most loyal investors. Despite consistently beating earnings expectations, operating in one of the market's hottest sectors, and trading against the backdrop of record-high equity indices, the stock still can't break free.
Qualcomm's Q3 earnings beat on strong automotive and IoT growth, but China tariffs and high R&D costs cloud its outlook.
Qualcomm is expanding into automotive, industrial IoT, data centers, and wearable AI through partnerships with Xiaomi, Samsung, and Advantech, while bullish technicals at key supports signal upside.
Qualcomm (QCOM) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
Qualcomm's transformation beyond mobile chipsets still faces a skeptical market, with investors lacking conviction of its ability to diversify into other growth segments. Despite a pretty decent earnings scorecard, Qualcomm's relatively slow progress leaves the market contemplating about missed opportunities. While leading semiconductor peers have capitalized on the AI infrastructure boom, Qualcomm's move to the data center business is far from guaranteed.
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I reiterate my Buy rating on Qualcomm Incorporated stock, with a fair value estimate of $183 per share, driven by strong non-handset growth. Qualcomm's acquisition of Alphawave Semi and partnerships with Xiaomi and Aetina expand its AI, automotive, and IoT market presence. Q3 FY25 results showed double-digit growth in automotive and IoT, supporting management's $22 billion FY29 revenue target for these segments.