QUALCOMM (QCOM) Stock Forecast & Price Target

Qualcomm is projected to experience significant revenue growth across various sectors, with handset revenues expected to increase by 10% year-over-year, amounting to approximately $6.8 billion, surpassing previous estimates. The Internet of Things (IoT) sector is anticipated to rise by around 15% year-over-year, driven by the growing adoption of AI technologies, while automotive revenues are forecasted to grow impressively by 50% year-over-year thanks to the implementation of advanced Snapdragon Digital Chassis solutions. Qualcomm's ongoing diversification strategy demonstrates promising potential, particularly as Automotive and IoT segments are projected to witness substantial growth rates, indicating the company's robust positioning in the evolving technology landscape.

Qualcomm's management has indicated flat QTL revenues for FY25 due to ongoing licensing disputes, particularly with Huawei, as well as a forecast of stagnant or minimal growth in handset unit sales. The adjusted earnings per share for CY25 is projected to be $11.30, slightly below prior estimates and consensus, signaling potential challenges in revenue generation. Additionally, deteriorating economic conditions coupled with increased business regulations pose risks to the financial stability of Qualcomm’s vendors and users, which could lead to higher delinquencies and negatively affect the company's overall performance.