Evaluating Qualcomm (QCOM) After Recent Gains: Is the Stock Undervalued?

QUALCOMM (QCOM) has recently posted steady gains over the past month, climbing around 4%. The stock has outperformed its sector in the past 3 months as investors weigh its ongoing profitability and revenue growth in relation to broader market moves.

See our latest analysis for QUALCOMM.

QUALCOMM’s share price momentum has been building this year, with a 1-month share price return of 4.4% and a 3-month return of just over 5%, as investors respond to steady revenue growth and resilient profitability. Looking at the bigger picture, total shareholder returns over the past three years have reached an impressive 57%, highlighting the company’s long-term value, even as the one-year total return has been more muted.

If you’re keen to see how other top semiconductor and tech innovators are performing, our full list is just a click away: See the full list for free.

With QUALCOMM showing consistent returns and some discounts relative to both analyst targets and intrinsic value, is there an opportunity for investors to buy in before the next upswing? Or has the market already accounted for future growth?

Most Popular Narrative: 6.8% Undervalued

QUALCOMM’s last close of $165.66 sits below the fair value highlighted by the most followed narrative, which sees more room for the stock to run. Before diving into the full story, here is a crucial catalyst directly from the narrative itself:

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.

Read the complete narrative.

Curious about what is really driving this bullish outlook? The heart of this calculation is a bold call on future technology expansion and lasting profit power. Which assumptions about the earnings runway and shifting business mix lead experts to set that fair value above the current price? Discover the full framework and hidden levers behind this valuation for QUALCOMM.

Result: Fair Value of $177.71 (UNDERVALUED)

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

However, rising competition from in-house chipmakers and ongoing global trade tensions could threaten QUALCOMM’s growth and challenge the bullish narrative going forward.

Find out about the key risks to this QUALCOMM narrative.

Build Your Own QUALCOMM Narrative

If you’d like to dig into the numbers for yourself or think there’s another angle to consider, you can shape your own narrative in just a few minutes. Do it your way

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding QUALCOMM.

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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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