QUALCOMM (QCOM) Stock Forecast & Price Target

Qualcomm's financial performance demonstrates a strong upward trajectory, with QCT revenue increasing 11% year-over-year to $9.0 billion, largely driven by robust demand in handsets, IoT, and automotive markets. The IoT segment has shown a remarkable growth of 24% year-over-year, reaching $1.7 billion, fueled by the rising demand for edge AI and enterprise AI appliances. Additionally, the company's licensing revenue (QTL) increased 4% year-over-year to $1.3 billion, with EBT margins reflecting improved profitability at 71%, further highlighting Qualcomm's solid market position and operational efficiency.

Qualcomm's recent guidance indicates a projected revenue range of $10.3 billion to $11.1 billion for the fourth quarter, slightly above consensus expectations but below prior internal estimates, signaling a potential revenue deceleration. Additionally, revenue estimates for FY2025 have been reduced marginally to $43.52 billion, reflecting challenges in maintaining growth, particularly attributed to declining Apple-related revenue and slower expansion into the data center market. The company also faces headwinds from an inability to finalize agreements with essential partners, which could further hinder its financial performance and growth prospects.