Qualcomm (QCOM): Valuation Check After Ninth Straight Earnings Beat and Expanding AI, Automotive Growth Story

QUALCOMM (QCOM) just logged its ninth straight quarter of topping both revenue and EPS expectations, and that consistency is exactly why investors are paying closer attention to the stock right now.

See our latest analysis for QUALCOMM.

The market seems to be catching on, with QUALCOMM’s share price up 16.68% on a year to date basis and its 3 year total shareholder return of 70.40% reflecting how investors have been rewarding its steady execution, ongoing acquisitions in AI and data center, and active buybacks.

If QUALCOMM’s momentum has you thinking bigger about the semiconductor and AI theme, it might be worth scanning other high growth tech names through high growth tech and AI stocks for similar long term opportunities.

Yet even with nine straight beats, double digit earnings growth, and an upbeat AI and automotive roadmap, QUALCOMM still trades at a noticeable discount to targets. This raises the key question: is this a buying opportunity or is future growth already priced in?

Most Popular Narrative Narrative: 6.5% Undervalued

With QUALCOMM last closing at $179.26 against a narrative fair value of $191.80, the spread suggests room for upside if the projections hold.

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 how modest top line growth, steady margins, and shrinking share count can still support a richer earnings multiple than today? The most popular narrative maps out a step by step path where future profitability, capital returns, and a disciplined discount rate combine into that higher fair value. Want to see exactly which long term earnings and valuation assumptions are doing the heavy lifting? Read on and unpack the full playbook behind this price target.

Result: Fair Value of $191.80 (UNDERVALUED)

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

However, sustained smartphone cyclicality or setbacks in Qualcomm’s ambitious AI and data center push could quickly challenge the optimistic earnings and valuation path outlined above.

Find out about the key risks to this QUALCOMM narrative.

Build Your Own QUALCOMM Narrative

If you see the story unfolding differently, or simply want to stress test these assumptions with your own inputs, you can build a tailored view in under three minutes: Do it your way.

A great starting point for your QUALCOMM research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

Looking for your next investing move?

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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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