Qualcomm Earnings Beat Expectations, Stock Volatility Analysis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Should l Buy QCOM?
Source: Benzinga
- Strong Earnings Report: Qualcomm reported earnings per share of $3.50 and revenue of $12.25 billion, surpassing market expectations of $3.15 and $12.22 billion, indicating robust performance in the competitive semiconductor market.
- Year-over-Year Growth: Compared to the same quarter last year, Qualcomm's earnings per share increased by 2.6% and revenue by 5.0%, reflecting positive progress in innovation and market demand, which bolsters investor confidence.
- Options Market Dynamics: Despite a 19% decline in Qualcomm's stock year-to-date, the relative cheapness of call options encourages investors to consider establishing long positions at current price levels, reflecting optimism about a potential rebound.
- Price Volatility Expectations: According to the Black-Scholes model, Qualcomm's stock is expected to fluctuate between $128 and $150 over the next 42 days, indicating heightened market attention and uncertainty regarding its short-term performance.
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Analyst Views on QCOM
Wall Street analysts forecast QCOM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for QCOM is 197.14 USD with a low forecast of 165.00 USD and a high forecast of 225.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
10 Buy
5 Hold
1 Sell
Moderate Buy
Current: 136.300
Low
165.00
Averages
197.14
High
225.00
Current: 136.300
Low
165.00
Averages
197.14
High
225.00
About QCOM
Qualcomm Incorporated is engaged in the development and commercialization of foundational technologies for the wireless industry, including third generation (3G), fourth generation (4G) and fifth generation (5G) wireless connectivity, and high-performance and low-power computing, including on-device artificial intelligence. Its segments include Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL) and Qualcomm Strategic Initiatives. QCT develops and supplies integrated circuits and system software based on 3G/4G/5G and other technologies, including radio frequency front-end, digital cockpit and advanced driver assistance and automated driving, Internet of things including consumer electronic devices, industrial devices and edge networking products. QTL grants licenses or otherwise provides rights to use portions of its intellectual property portfolio that includes certain patent rights essential to and/or useful in the manufacture and sale of certain wireless products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strong Performance: Qualcomm reported a 5% year-over-year revenue increase in Q1 2026, exceeding market expectations, which highlights the company's resilience in the smartphone chip sector, yet the outlook remains concerning.
- Memory Shortage Impact: CEO Cristiano Amon indicated that a severe shortage of memory chips, particularly DRAM, will lead smartphone OEMs to reduce chipset inventories, negatively impacting Qualcomm's sales, with a revenue decline expected in Q2.
- Market Dynamics Shift: Although overall smartphone shipments are projected to decline by 1%, IDC forecasts that the total value of smartphone shipments will reach a record high of $579 billion in 2026, suggesting resilience in the premium segment that may help Qualcomm offset some adverse effects from the memory shortage.
- Future Outlook: Qualcomm anticipates that its chips will power 75% of Samsung's upcoming premium devices, which, despite potential price increases, may sustain demand in the high-end market and support the company's performance in the short term.
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- Sales Performance Breakthrough: Apple reported record iPhone sales in its latest earnings report, boosting its market share to 69%, despite weak sales in both low-end and premium Android devices, demonstrating Apple's strong brand loyalty and market appeal in a competitive landscape.
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- Holiday Season Support: Apple plans to support Qualcomm during the holiday season, potentially enhancing product sales and further solidifying its market leadership, especially as competitors face challenges in the current environment.
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- Supply Chain Disruption: Qualcomm anticipates a 1% decline in smartphone shipments for 2026 due to severe memory chip shortages, leading OEMs to pull back on orders, which negatively impacts overall sales performance.
- Premium Market Resilience: Despite the expected decline in shipments, IDC forecasts that the total value of smartphone shipments will reach $579 billion, indicating that the premium segment remains resilient to price increases, potentially helping Qualcomm offset some sales pressures.
- Manufacturing Capacity Constraints: Qualcomm's CEO highlighted that the memory shortage will severely impact the smartphone market, particularly as Chinese OEMs adopt cautious strategies and reduce chipset inventories, resulting in downward pressure on Qualcomm's sales.
- Long-term Investment Appeal: Despite facing short-term challenges, Qualcomm's stock trades at approximately 12 times forward earnings, suggesting that long-term investors may find it attractive, especially as demand for high-end chips continues to grow.
See More
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- Robotics Market Potential: The new Dragon Wing IQ 10 product from Qualcomm integrates connectivity, processing, and AI capabilities to meet the demands of emerging markets such as humanoid and manufacturing robots, positioning the company at the center of this rapidly evolving sector.
- IoT Transformation: Qualcomm's innovations in AI devices, particularly in wearables and smart glasses, are reshaping consumer experiences and are expected to lead significant global market transformations, further solidifying its core position in the IoT business.
- Global Collaboration Expansion: Qualcomm's partnerships with industry leaders in the US, China, and India are driving the proliferation and application of AI devices, showcasing its extensive influence in global markets and future growth potential.
See More
Qualcomm Earnings Beat Expectations, Stock Volatility Analysis
- Strong Earnings Report: Qualcomm reported earnings per share of $3.50 and revenue of $12.25 billion, surpassing market expectations of $3.15 and $12.22 billion, indicating robust performance in the competitive semiconductor market.
- Year-over-Year Growth: Compared to the same quarter last year, Qualcomm's earnings per share increased by 2.6% and revenue by 5.0%, reflecting positive progress in innovation and market demand, which bolsters investor confidence.
- Options Market Dynamics: Despite a 19% decline in Qualcomm's stock year-to-date, the relative cheapness of call options encourages investors to consider establishing long positions at current price levels, reflecting optimism about a potential rebound.
- Price Volatility Expectations: According to the Black-Scholes model, Qualcomm's stock is expected to fluctuate between $128 and $150 over the next 42 days, indicating heightened market attention and uncertainty regarding its short-term performance.
See More
Qualcomm Reports Strong Q1 Results but Faces Dim Outlook
- Strong Performance: Qualcomm reported a 5% year-over-year revenue increase in Q1 2026, exceeding market expectations, which highlights the company's resilience in the smartphone chip sector, yet the outlook remains concerning.
- Memory Shortage Impact: CEO Cristiano Amon indicated that a severe shortage of memory chips, particularly DRAM, will lead smartphone OEMs to reduce chipset inventories, negatively impacting Qualcomm's sales, with a revenue decline expected in Q2.
- Market Dynamics Shift: Although overall smartphone shipments are projected to decline by 1%, IDC forecasts that the total value of smartphone shipments will reach a record high of $579 billion in 2026, suggesting resilience in the premium segment that may help Qualcomm offset some adverse effects from the memory shortage.
- Future Outlook: Qualcomm anticipates that its chips will power 75% of Samsung's upcoming premium devices, which, despite potential price increases, may sustain demand in the high-end market and support the company's performance in the short term.
See More
Federal Judge Orders Elon Musk to Testify in USAID Case
- Musk Ordered to Testify: A federal judge has ruled that Elon Musk must testify regarding his role in dismantling USAID, rejecting his legal team's attempt to avoid questioning, which could impact Musk's reputation and future business endeavors.
- Alphabet Beats Earnings Estimates: Alphabet reported fourth-quarter revenue of $113.83 billion, surpassing the Street consensus estimate of $111.31 billion, with earnings per share of $2.82 exceeding expectations of $2.63, indicating strong performance in advertising and cloud services that may drive stock price increases.
- Amazon Delivery Milestone: Amazon announced it delivered over 13 billion items globally in 2025, with more than 8 billion items reaching U.S. Prime members the same or next day, a speed enhancement that will further strengthen its competitive position in the e-commerce market.
- Tesla's New Model Launch: Tesla unveiled a new All-Wheel Drive variant of the Model Y in the U.S. and Puerto Rico following Elon Musk's announcement of discontinuing the Model S and X, which could attract more consumers and enhance market share.
See More
Apple Achieves Record iPhone Sales Quarter Amid Competitive Challenges
- Intense Recruitment Competition: Elon Musk disclosed that Apple aggressively pursued Tesla engineers with high-paying recruitment calls during its abandoned electric vehicle project, highlighting the fierce talent competition that could impact Tesla's technological advancements.
- Sales Performance Breakthrough: Apple reported record iPhone sales in its latest earnings report, boosting its market share to 69%, despite weak sales in both low-end and premium Android devices, demonstrating Apple's strong brand loyalty and market appeal in a competitive landscape.
- Leadership Change Speculation: Rumors surrounding CEO Tim Cook potentially stepping down in 2026 are gaining traction, with prediction markets indicating a 33% chance of his departure, which could lead to significant shifts in the company's strategic direction and affect investor confidence.
- Holiday Season Support: Apple plans to support Qualcomm during the holiday season, potentially enhancing product sales and further solidifying its market leadership, especially as competitors face challenges in the current environment.
See More
Memory Chip Shortages Pressure Smartphone Supply
- Supply Chain Disruption: Qualcomm anticipates a 1% decline in smartphone shipments for 2026 due to severe memory chip shortages, leading OEMs to pull back on orders, which negatively impacts overall sales performance.
- Premium Market Resilience: Despite the expected decline in shipments, IDC forecasts that the total value of smartphone shipments will reach $579 billion, indicating that the premium segment remains resilient to price increases, potentially helping Qualcomm offset some sales pressures.
- Manufacturing Capacity Constraints: Qualcomm's CEO highlighted that the memory shortage will severely impact the smartphone market, particularly as Chinese OEMs adopt cautious strategies and reduce chipset inventories, resulting in downward pressure on Qualcomm's sales.
- Long-term Investment Appeal: Despite facing short-term challenges, Qualcomm's stock trades at approximately 12 times forward earnings, suggesting that long-term investors may find it attractive, especially as demand for high-end chips continues to grow.
See More
Qualcomm's Vision in the Robotics Industry
- Automotive Business Growth: Qualcomm's optimized technology portfolio in the automotive sector has successfully attracted collaborations with multiple OEMs including Volkswagen and various Japanese, Korean, and US manufacturers, indicating its leadership in ADAS and autonomous driving, which is expected to drive sustained growth in the coming years.
- Robotics Market Potential: The new Dragon Wing IQ 10 product from Qualcomm integrates connectivity, processing, and AI capabilities to meet the demands of emerging markets such as humanoid and manufacturing robots, positioning the company at the center of this rapidly evolving sector.
- IoT Transformation: Qualcomm's innovations in AI devices, particularly in wearables and smart glasses, are reshaping consumer experiences and are expected to lead significant global market transformations, further solidifying its core position in the IoT business.
- Global Collaboration Expansion: Qualcomm's partnerships with industry leaders in the US, China, and India are driving the proliferation and application of AI devices, showcasing its extensive influence in global markets and future growth potential.
See More
Qualcomm Earnings Beat Expectations, Stock Volatility Analysis
- Strong Earnings Report: Qualcomm reported earnings per share of $3.50 and revenue of $12.25 billion, surpassing market expectations of $3.15 and $12.22 billion, indicating robust performance in the competitive semiconductor market.
- Year-over-Year Growth: Compared to the same quarter last year, Qualcomm's earnings per share increased by 2.6% and revenue by 5.0%, reflecting positive progress in innovation and market demand, which bolsters investor confidence.
- Options Market Dynamics: Despite a 19% decline in Qualcomm's stock year-to-date, the relative cheapness of call options encourages investors to consider establishing long positions at current price levels, reflecting optimism about a potential rebound.
- Price Volatility Expectations: According to the Black-Scholes model, Qualcomm's stock is expected to fluctuate between $128 and $150 over the next 42 days, indicating heightened market attention and uncertainty regarding its short-term performance.
See More
