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1. Company Snapshot

1.a. Company Description

QUALCOMM Incorporated engages in the development and commercialization of foundational technologies for the wireless industry worldwide.The company operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI).The QCT segment develops and supplies integrated circuits and system software based on 3G/4G/5G and other technologies for use in wireless voice and data communications, networking, application processing, multimedia, and global positioning system products.


The QTL segment grants licenses or provides rights to use portions of its intellectual property portfolio, which include various patent rights useful in the manufacture and sale of wireless products comprising products implementing CDMA2000, WCDMA,LTE and/or OFDMA-based 5G standards and their derivatives.The QSI segment invests in early-stage companies in various industries, including 5G, artificial intelligence, automotive, consumer, enterprise, cloud, and IoT, and investment for supporting the design and introduction of new products and services for voice and data communications, new industries, and applications.It also provides development, and other services and related products to the United States government agencies and their contractors.


QUALCOMM Incorporated was incorpotared in 1985 and is headquartered in San Diego, California.

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1.b. Last Insights on QCOM

Breaking News: QUALCOMM Incorporated reported Q2 2026 earnings, with revenue of $10.6 billion and adjusted EPS of $2.65, beating estimates of $10.56 billion and $2.55, respectively. Automotive revenue surged, offsetting weakness in the handset business. QCT revenue was $9.1 billion, with record automotive revenues. The company sees opportunities in data centers and AI. Analysts at various firms have given recommendations, with some upgrading their rating to buy, while others maintain a hold. Wedbush Securities analyst, upgraded to outperform and set a new price target.

1.c. Company Highlights

2. Qualcomm's Q2 Surge: Automotive & AI Propel Growth

Qualcomm closed fiscal Q2 with $10.6 billion in revenue, a 2.2% YoY lift, and non‑GAAP EPS of $2.65—well above the $2.56 consensus. Gross margin held steady at 49%, while the company’s guidance for Q3 (revenue $9.2–$10 billion, EPS $2.10–$2.30) signals a modest but steady path forward. <sup>[1]</sup>

Publication Date: Apr -30

📋 Highlights
  • Strong Q2 Performance:: Revenue reached $10.6 billion with non-GAAP EPS of $2.65, hitting the high end of guidance.
  • QCT Dominance:: Generated $9.1 billion in revenue, led by record automotive ($5B+ annualized) and IoT growth.
  • Shareholder Returns:: Returned $3.7 billion to stockholders, including $2.8 billion in share repurchases and $945 million in dividends.
  • Automotive Acceleration:: Revenue on track to exceed $6 billion by fiscal 2026, driven by the fourth-gen Snapdragon Digital Chassis.

Revenue Breakdown & Guidance

QCT contributed $9.1 billion, with licensing adding $1.4 billion. Automotive revenues surpassed $5 billion annually, and Q3 is projected to hit a $6 billion run‑rate, largely driven by the Snapdragon Digital Chassis platform. The company forecasts Q3 handset revenues near $4.9 billion, reflecting a tightening inventory drawdown.

Automotive Momentum

Automotive sales are up 50% YoY, fueled by ADAS and Level‑3 autonomy modules. Qualcomm’s shift from chip to module sales, coupled with software licensing, is expected to lift gross margins and accelerate revenue growth into the 2026 fiscal year, positioning the division as a key revenue accelerator.

IoT & Edge AI Expansion

IoT revenues grew high single digits, driven by agentic workloads and edge‑AI solutions. The company’s fourth‑generation Snapdragon platform is being adopted across industrial and consumer devices, and a robust renewal pipeline suggests continued momentum in the high‑growth IoT space.

Handset Market Dynamics

Handset performance aligned with expectations; sell‑through held up while China Android demand is projected to bottom out in Q3, rebounding in Q4. Mid‑low tier sales dipped slightly, but Qualcomm’s partnership with Samsung—now commanding >70% of its premium portfolio—provides a stable revenue base.

Licensing & Customer Engagement

Licensing revenues rose to $1.4 billion, offering a clear barometer of market demand. Strategic customer engagement is accelerating, with a hyperscaler custom ASIC partnership slated for December shipments, and a growing royalty stream from Apple expected to remain steady through FY27.

Data Center & 6G Strategy

Qualcomm’s data‑center roadmap spans multiple phases: training, inference, and now agentic AI. The company plans to launch a dedicated CPU for agentic experiences and will detail its multi‑angle ASIC strategy at Investor Day on June 24. 6G prototypes are slated for 2028, with silicon in 2028 and early launches in 2029.

Financial Position & Shareholder Returns

The firm returned $3.7 billion to shareholders—$2.8 billion in repurchases and $945 million in dividends—while maintaining a net debt/EBITDA of 0.76. Free cash flow yield stands at 7.5%, underscoring a strong balance sheet and disciplined capital allocation.

Valuation Snapshot

Qualcomm trades at a P/E of 16.76 and EV/EBITDA of 13.65, reflecting modest upside given its robust automotive and AI growth trajectory. The company’s dividend yield of 2.28% and ROE of 40.19% reinforce its attractive valuation profile in a high‑margin tech landscape.

3. NewsRoom

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Qualcomm CEO Cristiano Amon on expected China smartphone sales 'bottom' this current quarter

Apr -30

Source: youtube.com

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Is Qualcomm Ready for Primetime? What the Technicals Say.

Apr -30

Source: barrons.com

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Why Qualcomm Stock Is Soaring on Thursday

Apr -30

Source: fool.com

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Qualcomm CEO Teases Deal with Large Hyperscaler

Apr -30

Source: youtube.com

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Wall Street Lifts Qualcomm Price Target to $160 on AI Ramp: Is the Hyperscaler Catalyst Real?

Apr -30

Source: 247wallst.com

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Qualcomm Stock Jumps. Data Center Push Offsets Soft Outlook

Apr -30

Source: gurufocus.com

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Major Indexes Eye Monthly Wins Despite Tech Tumble

Apr -30

Source: schaeffersresearch.com

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Qualcomm stock jumps 18% as data center push sparks fresh optimism

Apr -30

Source: invezz.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.36%)

6. Segments

Qualcomm CDMA Technologies (QCT)

Expected Growth: 6.5%

QCT's 6.5% growth driven by increasing demand for 5G chipsets, strong sales of Snapdragon processors, and expanding presence in automotive and IoT markets. Licensing revenue growth and high-margin semiconductor sales also contribute to QCT's robust performance, fueled by Qualcomm's technology leadership and strategic partnerships.

Qualcomm Technology Licensing (QTL)

Expected Growth: 5.5%

QTL's 5.5% growth is driven by increasing demand for 5G technology, strong royalty revenue from licensing agreements, and expanding partnerships with leading smartphone manufacturers. The segment's growth is also fueled by Qualcomm's dominant position in the mobile chip market and its ability to innovate and deliver high-performance technologies.

Nonreportable Segments

Expected Growth: 7.0%

QUALCOMM's Nonreportable Segments growth of 7.0% is driven by increasing demand for 5G technology, expanding Internet of Things (IoT) applications, and steady automotive industry growth, fueled by the company's innovative chipsets and solutions, enabling diverse industries to adopt advanced wireless connectivity.

Qualcomm Strategic Initiatives (QSI)

Expected Growth: 4.0%

Qualcomm Strategic Initiatives (QSI) growth of 4.0 is driven by expanding 5G and AI technologies, increasing demand for edge computing, and strategic partnerships. QSI's focus on diversifying revenue streams, investing in R&D, and enhancing its intellectual property portfolio also contribute to its growth. The segment's growth is further fueled by Qualcomm's leadership in mobile chipsets and its push into adjacent markets.

7. Detailed Products

Snapdragon Mobile Platforms

Snapdragon mobile platforms are a series of 32-bit and 64-bit ARM-based System-on-Chip (SoC) mobile processors designed and marketed by Qualcomm Technologies, Inc., a subsidiary of Qualcomm Incorporated. These platforms are used in a wide range of mobile devices, including smartphones, tablets, and laptops.

Qualcomm 5G Modems

Qualcomm's 5G modems are designed to provide fast and reliable connectivity for 5G networks. These modems support various 5G features, including millimeter wave (mmWave) and sub-6 GHz frequencies.

Wi-Fi and Networking Solutions

Qualcomm offers a range of Wi-Fi and networking solutions, including Wi-Fi chipsets, routers, and network processors. These solutions are designed to provide fast and reliable connectivity for home and enterprise networks.

Automotive Solutions

Qualcomm's automotive solutions include a range of products and services designed to enable connected and autonomous vehicles. These solutions include 5G modems, Wi-Fi and Bluetooth solutions, and automotive-grade processors.

Internet of Things (IoT) Solutions

Qualcomm's IoT solutions include a range of products and services designed to enable IoT devices, such as smart home devices, industrial automation systems, and wearables.

8. QUALCOMM Incorporated's Porter Forces

Forces Ranking

Threat Of Substitutes

QUALCOMM Incorporated operates in the semiconductor industry, specifically in the design and manufacturing of mobile chipsets and wireless technology solutions. While there are alternative technologies and products available, such as those offered by competitors like Intel, Huawei, and MediaTek, the threat of substitutes is moderate. This is because QUALCOMM's products are highly specialized and integrated into various devices, making switching costs relatively high for customers. However, emerging technologies like 5G and artificial intelligence (AI) may lead to new substitute products in the future.

Bargaining Power Of Customers

QUALCOMM's customers include major technology companies like Apple, Samsung, and Huawei. While these customers are large and have significant market power, they are also highly dependent on QUALCOMM's chipsets and technology solutions. This dependence limits their bargaining power to some extent. Additionally, QUALCOMM's products are highly specialized, which reduces the availability of alternative suppliers and further limits customer bargaining power.

Bargaining Power Of Suppliers

QUALCOMM's suppliers include companies that provide semiconductor manufacturing services, such as Taiwan Semiconductor Manufacturing Company (TSMC) and United Microelectronics Corporation (UMC). While these suppliers are crucial to QUALCOMM's operations, QUALCOMM has a relatively strong position in the industry and can negotiate favorable terms with its suppliers. Additionally, QUALCOMM has a diversified supply chain, which reduces its dependence on any single supplier.

Threat Of New Entrants

The threat of new entrants in the semiconductor industry is relatively low due to high barriers to entry, including significant research and development (R&D) expenses, complex manufacturing processes, and stringent regulatory requirements. New entrants would also need to establish relationships with major customers and suppliers, which can be challenging. QUALCOMM's strong brand reputation, extensive patent portfolio, and established customer relationships further reduce the threat of new entrants.

Intensity Of Rivalry

The semiconductor industry is highly competitive, with numerous established players competing for market share. QUALCOMM faces intense rivalry from companies like Intel, Huawei, MediaTek, and Samsung, which offer similar products and technologies. The competition is driven by factors like pricing, product performance, and innovation. Additionally, the industry is subject to rapid technological changes, which can lead to sudden shifts in market share and competitive dynamics.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 35.77%
Debt Cost 4.87%
Equity Weight 64.23%
Equity Cost 10.51%
WACC 8.49%
Leverage 55.70%

11. Quality Control: QUALCOMM Incorporated passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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KLA

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Growth: 8.3

Quality: 7.9

Yield: 2.0

Momentum: 9.5

Volatility: 5.0

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Broadcom

A-Score: 5.5/10

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Growth: 8.3

Quality: 8.2

Yield: 3.0

Momentum: 10.0

Volatility: 3.7

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Lam Research

A-Score: 5.5/10

Value: 0.8

Growth: 8.1

Quality: 8.3

Yield: 2.0

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QUALCOMM

A-Score: 5.5/10

Value: 2.5

Growth: 5.9

Quality: 7.4

Yield: 4.0

Momentum: 7.0

Volatility: 6.0

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Applied Materials

A-Score: 5.3/10

Value: 1.6

Growth: 7.9

Quality: 8.1

Yield: 1.0

Momentum: 8.5

Volatility: 5.0

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Texas Instruments

A-Score: 4.5/10

Value: 1.0

Growth: 3.6

Quality: 7.1

Yield: 6.0

Momentum: 3.0

Volatility: 6.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

179.58$

Current Price

179.58$

Potential

-0.00%

Expected Cash-Flows