QCOM Stock Recent News

Qualcomm leans deeper into automotive tech with its Snapdragon platform, ADAS push and Veoneer acquisition to drive growth.

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When investors hear the phrase "cheap tech stocks," they might assume these are shares that have been left behind by the industry. Indeed, that is likely true with many technology companies whose heydays have come and gone.

As we head into the final week of June, Qualcomm Inc. NASDAQ: QCOM continues to test investors' patience. Even with a fundamentally solid earnings report in April and a tidy 25% gains since then, the tech giant is failing to ignite the kind of sustained uptrend seen in bigger peers like NVIDIA Corp NASDAQ: NVDA or Broadcom Inc NASDAQ: AVGO.

Qualcomm is transforming from a smartphone chipmaker to a platform leader in automotive, IoT, and edge AI, driving robust non-handset growth. Automotive and edge AI are now core growth engines, with Snapdragon platforms gaining traction across cars, PCs, and industrial devices, supported by strategic acquisitions. Despite Apple's modem exit risk and China exposure, Qualcomm's diversification and strong financials provide resilience and a margin of safety for investors.

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Qualcomm is transforming beyond smartphones, expanding into automotive, IoT, and edge AI, supported by strong alliances and acquisitions. Q2 FY2025 results showed robust growth: revenue up 17% YoY, EPS up 22%, and strong cash generation fueling shareholder returns. Despite elite margins and profitability, QCOM trades at a discount due to market skepticism about sustainable growth outside mobile.

Qualcomm (QCOM) closed the most recent trading day at $151.30, moving 1.52% from the previous trading session.

Qualcomm's diversification has been highly strategic indeed, as observed in the growing partnerships/ design backlogs across compute/ IoT/ automotive end markets. Combined with the aggressive M&A activities, we believe that the company is likely to deliver on the aggressive FY2029 non-handset revenue target of $22B. This is significantly aided by the growing partnership across major Android OEMS, tempering the risks arising from the moderating share in AAPL's future product businesses.

AMD's strong AI momentum and faster sales growth for 2025 may give it the edge over QCOM, despite higher valuation.