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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

Qualcomm's recent momentum is driven by optimism surrounding its AI PC and automotive growth strategies. The company's Snapdragon X2 Elite series and partnerships with Google and BMW underpin its diversification beyond mobile chipsets. Additionally, a significant jump in share price on above-average trading volume and a 52-week high have fueled investor enthusiasm. With a strong run of nearly 40% since April, Qualcomm's competitive positioning in AI-driven opportunities and growth in automotive and IoT segments are key positive drivers.

1.c. Company Highlights

2. Qualcomm Delivers Strong Q4 with Revenue and EPS Beating Expectations

Qualcomm reported revenues of $11.3 billion and non-GAAP earnings per share of $3 in fiscal Q4, both of which exceeded the high end of their guidance range. The company's QCT revenues were $9.8 billion, up 9% sequentially, driven by strong demand for Snapdragon-powered premium tier Android handsets and continued traction in automotive and IoT segments. The QCT EBT margin was 29%, at the high end of their guidance. The actual EPS came out at $3, beating estimates of $2.87.

Publication Date: Nov -06

📋 Highlights
  • Q4 Revenue & Earnings:: $11.3B revenue and $3 non-GAAP EPS, both exceeding high-end guidance.
  • QCT Revenue Growth:: $9.8B quarterly, up 9% sequentially, with automotive segment surpassing $1B for the first time.
  • Fiscal 2025 Guidance:: $44B non-GAAP revenue (13% YoY), driven by $38.4B QCT revenue (16% YoY).
  • AI & 5G Momentum:: Snapdragon 8 Elite Gen 5 launched, boosting QCT handset revenue to $7B (14% YoY).
  • Data Center Timeline:: AI accelerators to generate material revenue by 2027, ahead of prior expectations.

Segment Performance

The handset segment saw revenues of $7 billion, increasing 14% on a year-over-year basis, driven by the success of Snapdragon Elite Gen 5 platform. IoT revenues grew 7% year-over-year to $1.8 billion, driven by strength across industrial and networking products. Automotive revenues surpassed the $1 billion quarterly milestone, delivering 17% year-over-year growth as the adoption of Snapdragon Digital Chassis platform continues to accelerate.

Guidance and Outlook

Qualcomm expects to deliver record results in the first fiscal quarter with revenues in the range of $11.8 billion to $12.6 billion and non-GAAP EPS of $3.30 to $3.50. The company remains on track to achieve their fiscal '29 long-term revenue commitment. Analysts estimate next year's revenue growth at 2.3%, indicating a potential slowdown in growth rate.

Valuation

With a P/E Ratio of 16.95 and an EV/EBITDA of 14.21, Qualcomm's valuation appears reasonable considering its strong financial performance and growth prospects. The company's ROIC of 24.05% and ROE of 42.85% indicate a high level of profitability. The market seems to have priced in a certain level of growth, and the stock's Free Cash Flow Yield of 5.99% provides a relatively attractive return.

Data Center and Future Plans

Qualcomm is making significant investments in the data center area, which is expected to contribute to the growth of the business. The company is excited about the size of the opportunity in the next phase of data center build-out and is focused on developing competitive and power-efficient CPUs. Revenue from data center products is expected to start materializing in fiscal 2027, a year ahead of the previously expected timeline.

3. NewsRoom

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Do Rising Earnings Estimates Strengthen the Case for Qualcomm Stock?

Dec -04

Source: zacks.com

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Is This the Most Overlooked AI Stock Trading Today?

Dec -04

Source: fool.com

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Groupe la Francaise Buys 19,755 Shares of QUALCOMM Incorporated $QCOM

Dec -04

Source: defenseworld.net

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The Bulls Are Back—Why Qualcomm Stock Is Gaining Strength Again

Dec -03

Source: marketbeat.com

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Does Billionaire David Tepper Know Something Wall Street Doesn't? He's Selling Alphabet and Amazon and Piling Into This AI Stock Instead.

Dec -03

Source: fool.com

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QUALCOMM (NASDAQ:QCOM) Shares Up 1.6% After Analyst Upgrade

Dec -03

Source: defenseworld.net

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QUALCOMM Incorporated (QCOM) Presents at UBS Global Technology and AI Conference 2025 Transcript

Dec -03

Source: seekingalpha.com

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QCOM's Robust Portfolio Drives Revenue Growth: Will the Trend Persist?

Dec -01

Source: zacks.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

Stock-Card
Lam Research

A-Score: 5.5/10

Value: 0.8

Growth: 8.1

Quality: 8.3

Yield: 2.0

Momentum: 9.0

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
KLA

A-Score: 5.4/10

Value: 0.8

Growth: 8.4

Quality: 7.9

Yield: 2.0

Momentum: 8.5

Volatility: 5.0

1-Year Total Return ->

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Broadcom

A-Score: 5.4/10

Value: 0.0

Growth: 7.6

Quality: 8.1

Yield: 3.0

Momentum: 9.5

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
QUALCOMM

A-Score: 5.3/10

Value: 3.4

Growth: 6.2

Quality: 8.1

Yield: 4.0

Momentum: 4.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Applied Materials

A-Score: 4.9/10

Value: 1.6

Growth: 8.1

Quality: 8.1

Yield: 2.0

Momentum: 5.0

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Texas Instruments

A-Score: 4.5/10

Value: 1.5

Growth: 3.6

Quality: 6.9

Yield: 6.0

Momentum: 3.0

Volatility: 6.0

1-Year Total Return ->

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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

174.35$

Current Price

174.35$

Potential

-0.00%

Expected Cash-Flows