QCOM Stock Recent News

Increased volatility is beginning to sway the stock market. Uncertainty over economic policy and geopolitical tensions has cooled the broader market.

Evercore screened for stocks that should do well even if the broader market suffers.

In the closing of the recent trading day, Qualcomm (QCOM) stood at $158.26, denoting a +1.26% change from the preceding trading day.

Shares of Qualcomm Inc. NASDAQ: QCOM have been stuck in a frustrating trading range for months despite the chipmaker consistently delivering strong financial results. The stock is down 10 percent since the last week of February and has been testing the lower end of its range from December.

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's diversification into Automotive and IoT segments shows high growth potential, mitigating risks from potential revenue loss due to Apple's in-house modem development. Q1 2025 results show strong performance with 17.5% revenue growth and 15% EPS growth, beating expectations and outperforming the S&P 500. Despite potential revenue loss from Apple, Qualcomm's growth in Automotive, IoT, and PC markets, along with share buybacks, supports a positive long-term outlook.

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 stock has remained resilient amid the recent selloff, and also outperformed Apple stock. QCOM trades at a discount to sector peers, helping to mitigate the recent volatility. Partnerships with China's smartphone OEMs are making gains as Apple finds the AI era tougher than it had planned for.