A Look at Qualcomm's (QCOM) Valuation as It Expands Further Into AI Data Center Markets

QUALCOMM (QCOM) is making a calculated move into the AI data center space by announcing plans for a new engineering center in Saudi Arabia. The facility will support AI server deployments and strengthen the company’s ecosystem in this growing sector.

See our latest analysis for QUALCOMM.

QUALCOMM’s push into the AI data center arena comes as its stock has shown mixed momentum this year. While the 1-year total shareholder return landed at 6.5%, longer-term shareholders have enjoyed strong cumulative gains of nearly 42% over three years. This indicates confidence in QUALCOMM’s expanding ambitions and its ability to capture new growth beyond traditional markets.

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But with QUALCOMM still trading 17% below analyst price targets and nearly 20% under some intrinsic value estimates, investors may wonder whether the true upside is just beginning or if the market has already accounted for future growth.

Most Popular Narrative: 13% Undervalued

QUALCOMM’s most widely followed narrative suggests its fair value stands well above the last close, highlighting notable upside potential driven by forward-looking growth drivers and new market opportunities.

Diversification into AI devices, automotive, and industrial IoT is expected to drive higher margins and reduce dependence on individual customers. Strategic expansion in data centers and next-generation connectivity broadens Qualcomm's addressable market and supports long-term sustainable growth.

Read the complete narrative.

Curious why the valuation is set so high? A closer look reveals bold revenue and margin forecasts, along with a future earnings multiple that signals strong analyst conviction.

Result: Fair Value of $187.71 (UNDERVALUED)

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

However, ongoing global competition and regulatory hurdles could challenge QUALCOMM’s growth plans. These factors may also test the stability of its long-term earnings.

Find out about the key risks to this QUALCOMM narrative.

Build Your Own QUALCOMM Narrative

If you have a different perspective or want to dive into the numbers yourself, you can easily build your own view in just minutes with our Do it your way.

A great starting point for your QUALCOMM research is our analysis highlighting 4 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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