QUALCOMM (QCOM): Assessing Valuation After Recent 10% Share Price Gain

QUALCOMM (QCOM) shares have climbed 10% over the past three months, catching the attention of investors interested in tech hardware and chipmakers. The stock’s recent momentum highlights ongoing curiosity about the company’s valuation and outlook.

See our latest analysis for QUALCOMM.

QUALCOMM’s share price return of 10.2% over the past three months builds on a steadily rising trend that has lasted most of the year. This likely reflects renewed optimism around the broader chip sector and potential for growth in advanced connectivity solutions. Looking longer term, QUALCOMM has delivered a 10.8% total shareholder return over the past year, keeping its overall momentum pointed in a positive direction.

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But with QUALCOMM’s impressive run, investors are wondering if the stock remains undervalued or if the recent gains mean all of the company’s growth potential is already reflected in the current price. Could this be a buying opportunity, or is the market simply pricing in future growth?

Most Popular Narrative: 7.3% Undervalued

The most widely followed narrative currently estimates QUALCOMM's fair value at $187.71, which is more than $13 above its recent close of $173.98. This suggests the market may be leaving genuine upside on the table, based on how consensus analysts view QUALCOMM's prospects and core business drivers.

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.

Want to know what powers this bullish narrative? The secret lies in ambitious forecasts for next-gen devices, earnings potential, and shrinking share counts. Curious how experts justify a steeper premium today for an uncertain tomorrow? Check out the numbers and see if you agree with their blueprint.

Result: Fair Value of $187.71 (UNDERVALUED)

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

However, ongoing legal scrutiny and heightened competition in AI chips could quickly shift sentiment. This may introduce new headwinds for Qualcomm’s bullish outlook.

Find out about the key risks to this QUALCOMM narrative.

Build Your Own QUALCOMM Narrative

If you think the current outlook misses something or you want to look deeper on your own, you can build your own investment thesis in just a few minutes. 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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