Qualcomm Inc
QCOM
$0.00
-0.38%
Qualcomm Inc is a leading technology company in the semiconductor industry. It is a wireless technology pioneer and chipset leader, defined by its foundational patents in cellular standards and its dominant position as a supplier to premier smartphone makers.
QCOM
Qualcomm Inc
$0.00
Related headlines
Investment Opinion: Should I buy QCOM Today?
Based on a synthesis of the data, the objective assessment is a Hold with a value-oriented bias. The company's strong fundamentals, cash flow, and attractive forward P/E of 11.61 provide a solid foundation for long-term value. However, the powerful negative price momentum, high short interest, and lack of a clear technical catalyst suggest it is prudent to wait for signs of a trend reversal or stabilization before initiating a new position. The current price near the 52-week low offers a margin of safety, but catching a falling knife remains a risk.
Sign up to view all
QCOM 12-Month Price Forecast
The analysis is conflicted, leading to a neutral stance. The fundamental valuation is compelling, but the powerful negative price momentum and sentiment cannot be ignored. The base case of sideways consolidation is most probable, awaiting a fundamental or technical catalyst to break the trend.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Qualcomm Inc's 12-month outlook, with a consensus price target around $0.00 and implied upside of — versus the current price.
Average Target
$0.00
8 analysts
Implied Upside
—
vs. current price
Analyst Count
8
covering this stock
Price Range
$0 - $0
Analyst target range
No sufficient analyst coverage available. The provided data includes recent rating actions from various firms, such as Bernstein downgrading to 'Market Perform' and Seaport Global initiating a 'Sell' rating. However, a consolidated analyst consensus including a target price and ratings distribution is not provided in the inputs.
Bulls vs Bears: QCOM Investment Factors
Qualcomm presents a classic value vs. momentum conflict. Fundamentally, it is a financially strong, highly profitable company with a compelling forward valuation. However, it is mired in a severe technical downtrend with negative price momentum and bearish sentiment, creating a high-risk, high-potential-reward scenario.
Bullish
- Strong Financial Health: Solid current ratio of 2.82, low debt-to-equity of 0.77, and robust free cash flow of $12.93B TTM.
- Attractive Forward Valuation: Forward P/E of 11.61 is low, suggesting the market is pricing in significant earnings growth.
- High Profitability Margins: Operating margin of 27.9% and ROE of 26.13% indicate efficient operations and strong returns.
- Dominant Market Position: Leading wireless technology and chipset supplier with foundational patents in 5G.
Bearish
- Severe Technical Downtrend: Stock down 23.7% in 6 months, underperforming S&P 500 by 20.9%, near 52-week low.
- Volatile Earnings History: Recent quarterly net loss of -$3.12B due to tax expense highlights earnings instability.
- High Short Interest: Short ratio of 4.36 indicates significant bearish sentiment from short sellers.
- Elevated Trailing P/E: Trailing P/E of 32.7 is high, raising valuation concerns despite strong forward outlook.
QCOM Technical Analysis
The stock has experienced a significant downtrend over the past six months, with the price declining by 23.73% from levels around $168 in early October 2025 to $128.78 as of March 31, 2026. This bearish performance has notably underperformed the broader market, as indicated by a relative strength of -20.91% over the same period. Short-term performance has been particularly weak, with the stock down 9.54% over the past month and 24.71% over the past three months. These declines are substantially worse than the S&P 500's performance, with relative strength readings of -4.29% and -20.08% for the one- and three-month periods, respectively. The current price of $128.78 is near the lower end of its 52-week range of $120.80 to $205.95, sitting approximately 37.5% below its 52-week high. The stock's beta of 1.27 indicates it has been more volatile than the market during this downturn.
Beta
1.28
1.28x market volatility
Max Drawdown
-32.4%
Largest decline past year
52-Week Range
$121-$206
Price range past year
Annual Return
-17.7%
Cumulative gain past year
| Period | QCOM Return | S&P 500 |
|---|---|---|
| 1m | -8.2% | -4.3% |
| 3m | -26.7% | -4.0% |
| 6m | -25.1% | -2.0% |
| 1y | -17.7% | +22.2% |
| ytd | -26.7% | -3.8% |
Bobby - Your AI Investment Partner
Get real-time data, AI-driven personalized investment analysis to make smarter investment decisions
QCOM Fundamental Analysis
Revenue in the most recent quarter (Q1 2026) was $12.25 billion, representing a 5% year-over-year growth. Profitability has been volatile; the company reported strong net income of $3.00 billion in Q1 2026 with a net margin of 24.5%, but this followed a significant net loss of -$3.12 billion in Q4 2025 due to a large income tax expense. Gross margin remains healthy at 54.6% in the latest quarter. Financial health appears solid with a current ratio of 2.82 and a debt-to-equity ratio of 0.77. The company generated strong operating cash flow of $4.97 billion in the last quarter and has substantial free cash flow, with a TTM figure of $12.93 billion reported. Operational efficiency metrics are robust, with a Return on Equity (ROE) of 26.13% and a Return on Assets (ROA) of 14.05%. The company maintains a high gross margin of 55.4% and an operating margin of 27.9%, indicating effective cost management and pricing power.
Quarterly Revenue
$12.3B
2025-12
Revenue YoY Growth
+0.05%
YoY Comparison
Gross Margin
+0.54%
Latest Quarter
Free Cash Flow
$12.9B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
Open an Account, get $2 TSLA now!
Valuation Analysis: Is QCOM Overvalued?
Given the company's positive net income in the latest quarter, the primary valuation metric is the Price-to-Earnings (P/E) ratio. The trailing P/E ratio is 32.70, while the forward P/E is significantly lower at 11.61, based on estimated EPS of $14.1. This forward multiple suggests the market is pricing in expected earnings growth. Peer comparison data is not available in the provided inputs. Other valuation metrics include a Price-to-Sales (P/S) ratio of 4.09 and an Enterprise Value-to-Sales (EV/Sales) ratio of 3.13. The stock offers a dividend yield of 2.10%.
PE
32.7x
Latest Quarter
vs. Historical
High-End
5-Year PE Range -15x~26x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
12.7x
Enterprise Value Multiple
Investment Risk Disclosure
The primary risk is the continuation of the severe price downtrend, which has seen the stock fall 37.5% from its 52-week high. The high beta of 1.27 indicates the stock is more volatile than the market, amplifying losses in a downturn. The elevated short ratio of 4.36 signals strong bearish conviction from sophisticated investors, which could lead to further selling pressure. Recent analyst downgrades to 'Market Perform' and 'Sell' reflect concerns about near-term prospects, potentially related to competitive pressures in the semiconductor space or cyclical demand weakness. Operational risks include earnings volatility, as evidenced by the massive net loss in Q4 2025 due to a one-time tax expense. While the core business is profitable, such swings can spook investors. Furthermore, the company operates in the highly competitive and cyclical semiconductor industry, where technological disruption and inventory corrections are constant threats. The current valuation disconnect—a high trailing P/E of 32.7 but a low forward P/E of 11.6—hinges on the company delivering on its earnings growth estimates, which is not guaranteed.
FAQ
Key risks include the continuation of the severe price downtrend, with the stock down 37.5% from its high. The high beta of 1.27 means it falls more than the market in downturns. Earnings volatility, as seen in the Q4 2025 net loss, is a concern. High short interest (ratio 4.36) indicates bearish sentiment that can fuel further declines. Finally, the company faces cyclical and competitive risks inherent in the semiconductor industry.
The 12-month outlook is for consolidation with a wide range of outcomes. The base case (50% probability) sees the stock trading between $135 and $155 as it stabilizes. The bull case (25%) projects a rally to $168-$190 on strong earnings and sentiment reversal. The bear case (25%) warns of a test of the 52-week low near $120 if negative momentum persists. The forward P/E of 11.6 provides a fundamental anchor for valuation.
QCOM's valuation sends mixed signals. Its trailing P/E of 32.7 appears high, but its forward P/E of 11.61, based on an estimated EPS of $14.1, is very low and suggests the market is pricing in significant growth or pessimism. Compared to its own historical performance and given its robust cash flow, the stock appears undervalued on a forward-looking basis, though the high trailing multiple reflects recent earnings volatility.
QCOM presents a high-conviction value opportunity but a poor momentum play. Its strong financial health (current ratio 2.82), high profitability (27.9% operating margin), and low forward P/E of 11.61 make it fundamentally attractive. However, the stock is in a severe downtrend, down 23.7% in six months, and carries high short interest. It is a good buy for patient, value-focused investors willing to withstand volatility.
QCOM is more suitable for a long-term investment horizon. The compelling forward valuation and strong business model are long-term positives, but the stock requires time to overcome its severe technical damage and bearish sentiment. Short-term traders face significant risk from the high volatility (beta 1.27) and powerful downtrend. Long-term investors can collect the 2.1% dividend while waiting for a fundamental re-rating.