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Commanding an impressive market cap of $236.5 billion, QUALCOMM Incorporated (QCOM) is a global leader in the development and commercialization of foundational technologies for the wireless industry. Headquartered in San Diego, California, the company operates through three segments: Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL), and Qualcomm Strategic Initiatives (QSI). In the highly competitive semiconductor sector, QCOM is constantly vying for market share with other industry giants such as Broadcom Inc. (AVGO).
Companies worth $200 billion or more are generally described as “mega-cap stocks,” and QUALCOMM fits right into that category. With a market cap that surpasses the mega-cap threshold, QCOM's substantial size, stability, and influence in the tech sector are undeniable. Besides, QCOM's innovative technologies and industry-leading development tools for AI apps make it a stable and influential player in the tech and wireless industries, driving the creation of new products and services.
QUALCOMM’s shares are down 3.8% from their 52-week high of $217.43, which they touched on May 28. However, QCOM stock is up 18.9% over the past three months, outshining the broader S&P 500 Index’s ($SPX) 4.9% returns over the same time frame.
In the long term, QCOM stock is up 44.4% on a YTD basis and has surged 81.4% over the past 52 weeks. By contrast, the SPX is up 12.2% in 2024 and 25% over the past 52 weeks.
To confirm the bullish price trend, QCOM has been trading above its 50-day and 200-day moving averages since early November.
QCOM stock's impressive price performance this year can be attributed to a recovering smartphone market and better-than-expected Q2 earnings results on May 1. The company's Q3 guidance also exceeded estimates, with revenue projected to increase by over 13% and EPS expected to be between $2.15 and $2.35.
The chips giant is also reaping the benefits of the growing interest in generative artificial intelligence. In addition, QCOM's automotive business is thriving as semiconductors are increasingly used in the transportation industry due to trends such as electrification and autonomous driving.
Recently, the company’s CEO Cristiano Amon introduced Copilot+ PCs powered by Snapdragon X Elite and X Plus, at Computex 2024, claiming they are the fastest and most intelligent Windows PCs with AI integration. Amon also highlighted the company's leading NPU and Oryon CPU in restoring performance leadership to the Windows PC ecosystem.
To emphasize the stock’s outperformance, it is worth noting that QUALCOMM also outshines its rival AVGO, which has gained 76.1% over the past 52 weeks and 25% on a YTD basis.
Aligning with QUALCOMM’s solid performance, analysts are optimistic about its future. The stock has a consensus rating of “Moderate Buy” from the 28 analysts covering it. The stock currently trades above its mean price target of $190.31.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
