QUALCOMM (QCOM) Stock Forecast & Price Target

Qualcomm's robust financial performance is underscored by an 11% year-over-year revenue increase in its QCT segment, reaching $9.0 billion, with handsets generating $6.3 billion and demonstrating a 7% growth, driven by demand for premium-tier devices. Additionally, the company's IoT revenue surged 24% year-over-year to $1.7 billion, fueled by rising edge AI demand and expanding enterprise applications, while automotive sector growth is projected at approximately 35% year-over-year. Furthermore, Qualcomm's licensing revenues from QTL increased 4% year-over-year to $1.3 billion, with an impressive EBT margin of 71%, reflecting the company's strong competitive positioning and sustained market demand.

Qualcomm's financial outlook reflects a downward trend, with fourth-quarter revenue guidance set between $10.3 billion and $11.1 billion, which is slightly below previous estimates and consensus expectations. There have been notable declines in Apple-related revenue due to reduced launch shares, coupled with challenges in penetrating the data center market, as evidenced by the failed or delayed negotiations with a key hyperscaler. Additionally, revised earnings estimates for the upcoming quarter indicate a decrease, with projections lowered to $2.85 from $2.96, further impacted by contraction in peer multiples.