Samsung Electronics on Wednesday unveiled its newest flagship smartphone, powered by Qualcomm's chips and Google's artificial-intelligence model, hoping its upgraded AI features can reinvigorate sales and fend off Apple and Chinese rivals.
Recently, Zacks.com users have been paying close attention to Qualcomm (QCOM). This makes it worthwhile to examine what the stock has in store.
Qualcomm's existing operating leverage it showed in FY2024 - if retained - should lead to higher earnings compared to the current consensus for 2025/26. I think QCOM's financial health is solid, with strong cash flow, manageable debt, and significant shareholder returns, indicating a resilient business model. Based on my calculations, the QCOM stock is undervalued by over 28%, with a fair value estimate of $211/share, presenting a compelling buy opportunity.
Qualcomm NASDAQ: QCOM is one of the leaders in the semiconductor space whose stock might just be ready to take off in 2025. In 2024, shares were having an incredible year, rising 57% by mid-June.
Qualcomm is diversifying beyond smartphones into automotive, IoT, and AI, with significant revenue growth in automotive and IoT segments. On-device AI is a key focus, with Qualcomm's specialized hardware like the Hexagon NPU and Oryon CPU cores enhancing performance and efficiency. The automotive segment shines, with Snapdragon digital chassis solutions driving revenue. Qualcomm aims to dominate ADAS and self-driving markets.
In the closing of the recent trading day, Qualcomm (QCOM) stood at $159.53, denoting a +1.53% change from the preceding trading day.
I see some upside for Qualcomm in 2025 if Samsung globally adopts the Snapdragon chipset for its Galaxy S25 lineup. However, I'm concerned Apple's in-house 5G modems could reduce Qualcomm's revenue for the year if they integrate their own modems in the upcoming iPhone SE 4. I find Qualcomm's valuation metrics compelling, with ratios trading below the sector median. Additionally, the company has a strong narrative, with plans to diversify its revenue streams.
Qualcomm (QCOM -0.90%) is dead set on winning a significant portion of the PC CPU market. The company's Arm-based Snapdragon X chips are efficient and powerful, and they can run Microsoft Windows and most standard Windows applications without issue thanks to an emulation layer.
The latest trading day saw Qualcomm (QCOM) settling at $159.08, representing a -0.9% change from its previous close.
Qualcomm faced legal challenges in 2024 that were recently resolved with a jury voting in favor of Qualcomm. Despite the risk of losing Apple's modem business, Qualcomm's increasingly diversified revenue base and strong AI tailwinds deserve a higher valuation. Qualcomm trades at a forward earnings multiple of 14x, offering great value with a growing dividend and share buyback program.
Qualcomm (QCOM) made a series of announcements at CES, including the debut of a new Snapdragon X chip for more affordable laptops and desktops. CEO Cristiano Amon says tells Yahoo Finance Tech Editor Dan Howley it's all about becoming the "new Qualcomm.
Why Qualcomm's Future Isn't Just Phones