Qualcomm (QCOM): Reassessing Valuation After Strong Results and Growing AI, Automotive and IoT Momentum
QUALCOMM (QCOM) shares have been moving on a clear story: stronger than expected quarterly results, accelerating growth in automotive and IoT, and rising enthusiasm around its role in AI infrastructure.
See our latest analysis for QUALCOMM.
At around $174.81, QUALCOMM’s 90 day share price return of 9.09 percent and year to date share price return of 13.78 percent sit alongside a 3 year total shareholder return of 57.18 percent, suggesting momentum is quietly rebuilding as investors price in its expanding AI, automotive, and IoT story despite mixed options activity.
If QUALCOMM’s AI driven thesis has your attention, this could be a good moment to see what else is emerging across the sector and explore high growth tech and AI stocks.
Yet with QUALCOMM trading just below analyst targets and upbeat AI, automotive, and IoT forecasts already baked into many models, is the current valuation still leaving upside on the table, or are markets already pricing in the next leg of growth?
Most Popular Narrative Narrative: 8.9% Undervalued
With QUALCOMM last closing at $174.81 against a narrative fair value of $191.80, the story leans toward upside driven by durable growth pillars and expanding AI exposure.
Rapid growth in automotive and industrial IoT segments, supported by strong design win momentum and a robust multi-year pipeline (with a combined $22 billion revenue target by 2029), is set to diversify Qualcomm's revenue base and drive margin-accretive growth as these businesses become a larger share of total earnings.
Curious how modest revenue growth, high earnings expansion, and a richer future multiple can coexist in one model? Discover the assumptions this narrative quietly leans on.
Result: Fair Value of $191.80 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, escalating competition, regulatory scrutiny, and execution risks in datacenter AI could quickly undermine the growth assumptions that underpin this undervaluation story.
Find out about the key risks to this QUALCOMM narrative.
Build Your Own QUALCOMM Narrative
If you are not fully convinced by this perspective or prefer to lean on your own research and assumptions, you can build a personalized view in just a few minutes: Do it your way.
A great starting point for your QUALCOMM research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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