QUALCOMM (QCOM): Assessing Valuation as Regulatory Win and New AI Center Signal Strategic Expansion

QUALCOMM (QCOM) just secured regulatory clearance in Korea for its Alphawave IP Group acquisition and is also launching a new AI Engineering Center in Riyadh. These moves highlight its active expansion in AI and data center technologies.

See our latest analysis for QUALCOMM.

QUALCOMM’s recent announcements, combined with regulatory wins and new AI ambitions, have fueled fresh optimism among investors. After a strong start to the year, the stock’s 9.4% year-to-date share price return has helped build on impressive long-term momentum, as shown by a 42% total shareholder return over three years. Momentum is picking up again as big institutional holders renew their interest, which signals growing confidence in QUALCOMM’s strategy and future.

If you’re inspired by QUALCOMM’s moves in tech and AI, you’ll definitely want to explore the rest of the sector. See the full list for free.

With QUALCOMM’s rapid pace of innovation and recent gains, the core question now is whether the current stock price still offers upside for new investors, or if the market is already factoring in anticipated growth and earnings potential.

Most Popular Narrative: 12.4% Undervalued

QUALCOMM’s most widely followed valuation narrative assigns the share a fair value well above its last closing price of $168.09, suggesting notable potential upside from current levels. This narrative combines analyst growth expectations and earnings power to support a positive outlook for long-term investors.

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 expected to diversify Qualcomm's revenue base and contribute to growth as these businesses become a larger share of total earnings.

Read the complete narrative.

What financial projections drive this optimistic narrative? The focus is on expectations of higher-end device sales, targeted future profit multiples, and resilient earnings. Interested in the key assumptions and how they come together? Continue reading to uncover the real factors behind this valuation.

Result: Fair Value of $191.80 (UNDERVALUED)

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

However, persistent competition from in-house chipmakers and potential disruptions to key international markets could quickly alter QUALCOMM’s bullish outlook.

Find out about the key risks to this QUALCOMM narrative.

Build Your Own QUALCOMM Narrative

If you see the story differently or want to dig into the numbers yourself, you can build your own QUALCOMM narrative 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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