Loop Capital has adjusted its price target for Qualcomm (QCOM, Financial), bringing it down to $155 from the previous $180. Despite having a Hold rating, the change comes after the company's first-quarter performance. The firm cites factors such as subsidies on Chinese smartphones, automotive business, and advance order pull-ins as contributors to the stronger-than-expected results for the second quarter. The updated price target reflects adjustments for lower valuations within the peer group.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 31 analysts, the average target price for Qualcomm Inc (QCOM, Financial) is $189.64 with a high estimate of $270.00 and a low estimate of $140.00. The average target implies an upside of 27.74% from the current price of $148.46. More detailed estimate data can be found on the Qualcomm Inc (QCOM) Forecast page.
Based on the consensus recommendation from 41 brokerage firms, Qualcomm Inc's (QCOM, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Qualcomm Inc (QCOM, Financial) in one year is $166.97, suggesting a upside of 12.47% from the current price of $148.46. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Qualcomm Inc (QCOM) Summary page.
QCOM Key Business Developments
Release Date: April 30, 2025
- Non-GAAP Revenue: $10.8 billion.
- Non-GAAP Earnings Per Share (EPS): $2.85.
- Chipset Business Revenue: $9.5 billion.
- Automotive Revenue Growth: 59% year-over-year.
- IoT Revenue Growth: 27% year-over-year.
- Licensing Business Revenue: $1.3 billion.
- QCT Handset Revenue: $6.9 billion, 12% year-over-year growth.
- QCT IoT Revenue: $1.6 billion, 27% year-over-year growth.
- QCT Automotive Revenue: $959 million, 59% year-over-year growth.
- QTL Revenue: $1.3 billion, EBIT margin of 70%.
- Stockholder Returns: $2.7 billion, including $938 million in dividends and $1.7 billion in stock repurchases.
- Guidance for Q3 Revenue: $9.9 billion to $10.7 billion.
- Guidance for Q3 Non-GAAP EPS: $2.60 to $2.80.
- QCT Revenue Guidance: $8.7 billion to $9.3 billion, EBIT margin of 28% to 30%.
- Non-GAAP Operating Expenses Guidance: Approximately $2.25 billion.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Qualcomm Inc (QCOM, Financial) reported non-GAAP revenues of $10.8 billion and non-GAAP earnings per share of $2.85, both exceeding the midpoint of guidance.
- The chipset business generated $9.5 billion in revenues, driven by strong performance across handsets, automotive, and IoT, with automotive and IoT revenues increasing 59% and 27% year-over-year, respectively.
- The company is making significant strides in AI, with advancements in smaller GenAI models that can run directly on devices, enhancing Qualcomm's opportunities in the AI space.
- Qualcomm Inc (QCOM) is expanding its presence in the automotive sector, securing 30 new designs, including five ADAS programs, and is on track to reach $8 billion in automotive revenues by fiscal '29.
- The company is focused on growing its non-handset revenues to $22 billion by fiscal '29, with strong demand in industrial IoT and strategic acquisitions enhancing its capabilities in this area.
Negative Points
- Licensing business revenues were $1.3 billion, slightly below expectations due to lower handset units in emerging regions.
- There is uncertainty around the impact of the global trade landscape and tariffs on demand across Qualcomm Inc (QCOM)'s businesses.
- The company is experiencing a decline in its share with a major US customer, expecting it to drop to approximately 70% in the upcoming product launch.
- Gross margins in the chipset segment were slightly down due to mix across tiers and segments, impacting profitability.
- Discussions with Huawei regarding royalty revenue remain ongoing with no significant updates, reflecting challenges in negotiations.
