A Look At Qualcomm’s (QCOM) Valuation After Fresh Analyst Upgrades And Expanding AI And Data Center Ambitions

Why analyst upgrades are putting QUALCOMM (QCOM) back on investors’ radar

QUALCOMM (QCOM) has just attracted fresh attention after upgrades from Loop Capital and Wells Fargo, with both firms pointing to easing headwinds and a broader story beyond smartphones.

For you as an investor, the interesting angle is how this shift in sentiment lines up with Qualcomm’s push into data center and AI solutions, alongside its existing mobile, automotive, and IoT businesses.

See our latest analysis for QUALCOMM.

At a share price of US$145.82, Qualcomm has seen a 3.22% 7 day share price return after a tougher stretch that included a 30 day share price return of 4.72% decline and a year to date share price return of 15.70% decline. Its 3 year total shareholder return of 25.34% and 5 year total shareholder return of 26.47% point to a more resilient longer term picture as investors reassess the company’s AI and data center ambitions alongside mobile and automotive updates.

If Qualcomm’s AI story has your attention, it could be a moment to see what else is brewing in this space through our list of 33 AI infrastructure stocks.

With QCOM trading at US$145.82, sitting at a discount to both analyst targets and some estimates of intrinsic value, the key question for investors is whether this recent weakness represents a reset that creates opportunity, or a market verdict that already reflects Qualcomm’s future growth story.

Most Popular Narrative: 51.4% Undervalued

According to the most followed narrative, QUALCOMM’s fair value sits at $300.00, which is well above the last close of $145.82 and frames a very different long term picture from recent share price moves.

Qualcomm (QCOM) delivered a strong start to FY2025, posting record revenues of $11.7 billion (+18% YoY) and EPS growth of 24% YoY to $3.41. The company’s handset, automotive (+61% YoY), and IoT (+36% YoY) segments drove top-line expansion, while $2.7 billion was returned to shareholders through buybacks and dividends. Qualcomm’s Edge AI dominance, with on-device AI partnerships alongside Meta, Microsoft, and Amazon, positions it as a leader in next-gen computing. Meanwhile, its Snapdragon Digital Chassis is propelling record-breaking automotive growth, strengthening its long-term outlook across AI, PCs, and connected vehicles.

Read the complete narrative.

If you want to understand why this narrative supports a fair value that is roughly double today’s share price, the key ingredients are revenue expansion across multiple segments, firm profit margins and a future earnings profile that leans heavily on AI, PCs and automotive. Curious which assumptions around growth, profitability and required return sit under that $300.00 figure, and how they connect to QUALCOMM’s recent results and product roadmap? The full story is in the numbers that power this valuation.

Result: Fair Value of $300.00 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this hinges on Qualcomm sustaining multi segment momentum, and any slowdown in AI, automotive, or key licensing agreements could challenge that $300.00 fair value story.

Find out about the key risks to this QUALCOMM narrative.

Next Steps

With sentiment clearly split between long term optimism and near term caution, it makes sense to move quickly and review the full picture for yourself, including 4 key rewards and 1 important warning sign.

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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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