What Recent Automotive Partnerships Mean for Qualcomm Stock in 2025

Wondering what to do with QUALCOMM stock right now? You are definitely not alone. Investors eyeing tech names are keeping QUALCOMM on their radar, not just for its solid position in wireless and semiconductor markets, but because the numbers tell a nuanced story. After all, QUALCOMM’s share price has climbed a steady 3.4% in the last week, has essentially recovered from last month’s slight 0.2% dip, and is sitting on a remarkable 10.0% gain year-to-date. If you zoom out, the stock’s 1.5% annual increase might seem modest, but the long haul is where things get interesting, with 51.9% and 52.4% total returns over the last three- and five-year periods.

Behind these moves, recent news about the company’s expanding partnerships in automotive tech and next-gen connectivity has helped shift investor sentiment. The market seems to be rediscovering QUALCOMM’s growth potential as it reaches into new sectors, even while fundamental risks in the industry remain a topic of debate.

So, where does QUALCOMM stand from a valuation perspective? Our scoring model checks for six classic signs of undervaluation, and QUALCOMM scores a reassuring 4 out of 6. That suggests a favorable setup, but as you’ll see, running through the numbers is only part of the bigger picture. Next, let’s break down those valuation approaches and stay tuned for an even smarter way to look at what QUALCOMM is really worth.

Why QUALCOMM is lagging behind its peers

Approach 1: QUALCOMM Discounted Cash Flow (DCF) Analysis

The Discounted Cash Flow (DCF) model estimates a company’s true worth by projecting its future cash flows and then discounting those amounts back to today’s value. This helps investors gauge whether the stock price reflects a company’s long-term earning power or not.

For QUALCOMM, the current Free Cash Flow stands at $11.25 Billion. Over the next several years, analysts forecast continued growth, with projected free cash flow climbing steadily to $16.32 Billion by 2029. After that, extrapolations suggest further gains based on industry and company-specific estimates, reaching as high as $21.14 Billion by 2035. These projections use a two-stage approach, with detailed analyst estimates for the early years and more moderate growth assumptions following that period.

After analyzing the numbers, the estimated intrinsic value of QUALCOMM stock is $195.65 per share. This figure suggests the stock is trading at roughly a 13.7% discount to its intrinsic value, which may indicate it is undervalued based on cash flow fundamentals at this time.

Result: UNDERVALUED

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for QUALCOMM.

Our Discounted Cash Flow (DCF) analysis suggests QUALCOMM is undervalued by 13.7%. Track this in your watchlist or portfolio, or discover more undervalued stocks.

Approach 2: QUALCOMM Price vs Earnings (PE)

The Price-to-Earnings (PE) ratio is a trusted valuation tool for analyzing profitable companies like QUALCOMM because it directly compares what investors are willing to pay per dollar of earnings. It is particularly useful when earnings are strong and relatively stable, giving a clear view of how the market values growth prospects versus risks.

Determining what qualifies as a “fair” PE ratio depends on several factors. Companies with higher expected growth rates, more stable earnings, and lower risks usually trade at higher PE multiples, while slower or riskier businesses typically warrant lower ratios. For QUALCOMM, the current PE stands at 15.7x, which looks notably low when stacked up against the semiconductor industry average of 39.5x and its peer average of 67.4x.

This is where Simply Wall St's proprietary “Fair Ratio” metric comes in. The Fair Ratio for QUALCOMM is 27.4x, representing what would be considered reasonable by factoring in the company’s specific earnings growth outlook, profit margin profile, size, industry context, and company-specific risk factors. Unlike a basic comparison to industry or peers, this tailored benchmark offers a smarter perspective because it reflects QUALCOMM’s unique strengths and challenges and not just broad sector trends.

Comparing QUALCOMM’s actual PE of 15.7x to the Fair Ratio of 27.4x shows the stock is trading well below what would be expected based on its fundamentals and outlook, indicating undervaluation through this lens.

Result: UNDERVALUED

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your QUALCOMM Narrative

Earlier we mentioned there is an even better way to understand valuation, so let’s introduce you to Narratives. A Narrative is simply your story about QUALCOMM—your perspective on what will drive the company’s future, how fast it may grow, and what it could truly be worth based on those assumptions. Narratives powerfully link a company’s story to a tailored financial forecast, and from there to a Fair Value estimate, helping investors move beyond just the numbers and benchmarks.

Available directly within the Simply Wall St Community page and used by millions of investors, Narratives make it easy to visualize your view of QUALCOMM versus that of other investors or analysts. By clearly laying out your key assumptions, such as expected revenue growth or profit margins, you can see how the story you believe in leads to a higher or lower Fair Value compared to the current share price. Narratives also update dynamically whenever relevant news or earnings are released, so your decision-making stays timely and insightful.

For example, some QUALCOMM Narratives on Simply Wall St set a high Fair Value of $300, reflecting very bullish growth in AI and automotive. Others estimate a more conservative Fair Value of $140, highlighting risks from industry competition and cyclicality. Narratives empower you to decide when to buy or sell based on your own story and investing logic, all in one accessible tool.

Do you think there's more to the story for QUALCOMM? Create your own Narrative to let the Community know!

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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