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With a market cap of $192.1 billion, QUALCOMM Incorporated (QCOM) is a leading fabless semiconductor company that designs high-performance, low-power chips for mobile, automotive, AI, and IoT applications. With a strong focus on wireless innovation, it also manages a vast intellectual property portfolio and invests in emerging technologies like 5G and generative AI.
Shares of the chipmaker have outperformed the broader market over the past 52 weeks. QCOM stock has risen 21% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 20.8%. On a YTD basis, shares of QCOM are up 11.6%, compared to SPX's 1.8% gain.
In addition, the San Diego, California-based company has also outpaced the Technology Select Sector SPDR Fund's (XLK) 12.5% return over the past 52 weeks and a 2.1% YTD dip.
Shares of QCOM rose 4.3% on Nov. 6 due to stronger-than-expected Q4 2024 adjusted EPS of $2.69 and revenue of $10.2 billion, driven by robust demand for Android handsets and automotive solutions. Qualcomm reported record automotive revenues for the fifth consecutive quarter, with a 68% year-over-year increase to $899 million, highlighting strong traction for its Snapdragon Digital Chassis platform. Additionally, Qualcomm's strong Q1 2025 guidance, projecting revenue of $10.5 billion - $11.3 billion and adjusted EPS of $2.85 - $3.05, boosting investor sentiment..
For the current fiscal year, ending in September 2025, analysts expect QCOM's EPS to grow 8.3% year-over-year to $9.16 . The company's earnings surprise history is promising. It beat the consensus estimates in the last four quarters.
Among the 32 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 16 “Strong Buy” ratings, one “Moderate Buy,” 14 “Holds,” and one “Strong Sell.”
On Feb. 3, Bernstein analysts maintained an “Outperform" rating on Qualcomm with a $215 price target, citing strong smartphone sector performance, market share gains, a compelling valuation, and growth potential in AI and adjacent markets.
As of writing, QCOM is trading below the mean price target of $203.35. The Street-high price target of $270, implies a potential upside of 57.6% from the current price levels.
