Is Samsung and Google's XR Headset Launch Shifting the Investment Case for Qualcomm (QCOM)?

• Earlier this week, Samsung and Google announced the launch of the Galaxy XR mixed reality headset, featuring advanced passthrough vision, eye-tracking, hand tracking, and integration with Google's Gemini AI assistant as they aim to compete with Meta in the smart glasses arena.
• The debut of the Galaxy XR spotlights increasing momentum in the wearable and mixed reality market, an area closely tied to Qualcomm's core technology as a key component supplier for next-generation devices.
• We'll examine how Samsung and Google's push into XR wearables, leveraging Qualcomm hardware, could influence the company's investment outlook.

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QUALCOMM Investment Narrative Recap

To be a Qualcomm shareholder today, you need to believe that the company can maintain its pivotal role in enabling next-generation technologies such as mixed reality, AI, and connected devices, while offsetting the risk posed by major customers like Apple reducing their reliance on Qualcomm chips. While the Galaxy XR launch underscores growing demand for advanced wearables powered by Qualcomm's hardware, this news does not appear to materially shift the most important near-term catalyst for the stock: sustained, profitable adoption of AI and XR devices across global markets; nor does it reduce the main risk of revenue loss from Apple’s in-house chip ambitions.

Among Qualcomm’s recent announcements, the affirmation of its $0.89 quarterly dividend is especially relevant. Regular dividend payments signal management’s confidence in the company’s steady cash generation, even as the business faces competitive pressure and transitions in key customer relationships highlighted by new device launches such as the Galaxy XR.

Yet, in contrast to the growth excitement, investors should be aware that risks tied to Apple’s looming licensing agreement expiration in 2027 could...

Read the full narrative on QUALCOMM (it's free!)

QUALCOMM's outlook anticipates $46.9 billion in revenue and $12.2 billion in earnings by 2028. This implies a 2.7% annual revenue growth and a $0.6 billion increase in earnings from the current $11.6 billion.

Uncover how QUALCOMM's forecasts yield a $177.71 fair value, a 5% upside to its current price.

Exploring Other Perspectives

Thirty-one Simply Wall St Community fair value estimates for Qualcomm span from US$140 to US$300 per share, reflecting pronounced divergence among private investors. Staying competitive as major customers shift to in-house chips remains crucial to the company’s long-term outlook, so consider how sharply opinions can differ as you weigh these alternative views.

Explore 31 other fair value estimates on QUALCOMM - why the stock might be worth as much as 78% more than the current price!

Build Your Own QUALCOMM Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your QUALCOMM research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free QUALCOMM research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate QUALCOMM's overall financial health at a glance.

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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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