Qualcomm Stock Attracts Investors Amid Discount
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy QCOM?
Source: Fool
- Earnings Warning: Qualcomm's fiscal Q1 2026 sales grew only 5% year-over-year, surpassing analyst expectations, yet management's guidance of $10.2 to $11 billion for the current quarter falls short of the $11.1 billion consensus, indicating significant market pressures.
- Market Opportunity: Despite facing challenges from memory chip shortages in the short term, Qualcomm's Snapdragon microprocessors are increasingly being adopted in AI-capable laptops and wearables, with 2026 poised to be a breakout year for edge computing, driving future growth.
- Technological Outlook: The CEO highlighted that 2026 will present a major opportunity for edge computing, as AI data centers encounter capacity constraints, making Qualcomm's processors a crucial choice for the AI industry due to their processing efficiency and superior memory bandwidth.
- Investor Confidence: Although the memory shortage remains a concern, analysts believe that Qualcomm's stock price has already absorbed most negative news, suggesting that investors may sense a market recovery before the supply issues are resolved, reflecting confidence in future growth.
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Analyst Views on QCOM
Wall Street analysts forecast QCOM stock price to rise
16 Analyst Rating
10 Buy
5 Hold
1 Sell
Moderate Buy
Current: 142.630
Low
165.00
Averages
197.14
High
225.00
Current: 142.630
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.
Qualcomm Stock Attracts Investors Amid Discount
- Earnings Warning: Qualcomm's fiscal Q1 2026 sales grew only 5% year-over-year, surpassing analyst expectations, yet management's guidance of $10.2 to $11 billion for the current quarter falls short of the $11.1 billion consensus, indicating significant market pressures.
- Market Opportunity: Despite facing challenges from memory chip shortages in the short term, Qualcomm's Snapdragon microprocessors are increasingly being adopted in AI-capable laptops and wearables, with 2026 poised to be a breakout year for edge computing, driving future growth.
- Technological Outlook: The CEO highlighted that 2026 will present a major opportunity for edge computing, as AI data centers encounter capacity constraints, making Qualcomm's processors a crucial choice for the AI industry due to their processing efficiency and superior memory bandwidth.
- Investor Confidence: Although the memory shortage remains a concern, analysts believe that Qualcomm's stock price has already absorbed most negative news, suggesting that investors may sense a market recovery before the supply issues are resolved, reflecting confidence in future growth.
See More
UK Consumers' Association Withdraws Lawsuit Against Qualcomm
- Lawsuit Withdrawal: The UK's Consumers' Association, Which?, announced the withdrawal of its lawsuit against Qualcomm, which accused the company of abusing its dominant position to force Apple and Samsung to pay inflated royalties, indicating the case's weak legal foundation.
- Consumer Impact: Representing 29 million UK consumers, Which? sought over £480 million in reimbursement for inflated prices due to alleged anticompetitive practices, but ultimately did not secure any compensation.
- Legal Findings: Following the trial, Which? concluded that Qualcomm's practices did not infringe competition laws or lead to increased royalties, affirming that Qualcomm's licensing requirements are lawful and do not harm competition.
- Market Reaction: A Qualcomm spokesperson stated that the withdrawal reaffirms U.S. court rulings on the legality of its licensing practices, although market sentiment remains cautious regarding Qualcomm's future performance, reflecting investor concerns about the company's outlook.
See More
Three Resilient Stocks to Consider
- Qualcomm's Market Performance: Qualcomm (QCOM) has seen a 23% decline in its stock price since early January; however, despite challenges from memory chip shortages, demand for its high-performance processors remains strong, and as memory manufacturers recover, Qualcomm is expected to increase shipments, improving market performance.
- Remitly's Growth Potential: Remitly Global (RELY) successfully facilitated $19.5 billion in transfers in Q3 last year, a 35% year-over-year increase, generating $419.5 million in revenue with EBITDA of $61.2 million, up 29%, and analysts expect this growth momentum to continue through 2028, showcasing its strong competitive position in the international payments market.
- The Trade Desk's Value Recovery: The Trade Desk (TTD) has been impacted by the overall market downturn, but its revenue is projected to grow by 16% in 2023, with a current P/E ratio of only 12 times, indicating investment value, as the market has yet to recognize its necessity.
- Market Environment Challenges: While the overall market faces uncertainty, stocks like Qualcomm, Remitly, and The Trade Desk demonstrate strong resilience, suggesting that investors may consider these potential stocks for long-term gains amid market volatility.
See More
Cisco Shares Plunge Due to Rising Memory Prices
- Significant Stock Drop: Cisco shares plummeted by as much as 12% on Thursday, marking the worst single-day decline since 2022, primarily due to rising memory prices exerting pressure on the company's margins, reflecting market concerns about its future profitability.
- Memory Shortage Impact: The global memory shortage, driven by strong demand for AI chips from Nvidia, poses challenges for Cisco as production costs soar, particularly with large data center memory orders limiting the production capacity for other devices, further exacerbating market uncertainty.
- Lackluster Financial Outlook: Although Cisco reported better-than-expected quarterly results, the stock still dropped about 7% due to the company issuing a mediocre forecast, indicating insufficient investor confidence in future growth prospects.
- Strategic Response Adjustments: CEO Chuck Robbins stated that Cisco will respond to rising memory prices by raising prices, revising contracts, and renegotiating terms, while CFO Mark Patterson emphasized controlling what can be controlled to mitigate cost pressures.
See More
Cisco Shares Plunge 12% Amid Margin Pressure from Rising Memory Prices
- Stock Plunge: Cisco shares fell 12% on Thursday, marking the largest single-day drop in four years, primarily due to rising memory prices exerting pressure on the company's margins, reflecting market concerns about its future profitability.
- Memory Shortage Impact: The global shortage of memory, driven by strong demand for AI chips, has skyrocketed component costs, affecting Cisco and other tech companies, including Apple and Dell, which are also feeling the pinch from increased expenses.
- Financial Response: CEO Chuck Robbins stated during the earnings call that Cisco will raise prices, revise contracts, and negotiate terms to adapt to evolving component prices, aiming to control what can be managed amid rising costs.
- Declining Gross Margin: Although Cisco reported better-than-expected quarterly results, its product gross margin fell to 66.4%, down 130 basis points from the previous year, highlighting the challenges the company faces in managing rising costs.
See More
2 Factors Making Qualcomm's Risk/Reward Profile Extremely Attractive
Qualcomm's Stock Performance: Qualcomm has experienced a significant decline in its stock price, dropping as much as 13% recently, marking one of its worst starts to the year, but has shown signs of recovery with four consecutive days of gains.
Investor Sentiment: Despite the recent downturn, investors appear to believe that the market has overreacted, as indicated by the stock's relative strength index (RSI) being historically low, suggesting potential for recovery.
Technical Analysis: The stock is currently considered extremely oversold, with analysts noting that similar conditions in the past have led to substantial recoveries, indicating a potential buying opportunity for investors.
Analyst Ratings: Several analysts have upgraded Qualcomm to a "buy" rating with price targets significantly above its current trading levels, suggesting strong upside potential and reflecting a growing bullish sentiment in the analyst community.
See More
Qualcomm Stock Attracts Investors Amid Discount
- Earnings Warning: Qualcomm's fiscal Q1 2026 sales grew only 5% year-over-year, surpassing analyst expectations, yet management's guidance of $10.2 to $11 billion for the current quarter falls short of the $11.1 billion consensus, indicating significant market pressures.
- Market Opportunity: Despite facing challenges from memory chip shortages in the short term, Qualcomm's Snapdragon microprocessors are increasingly being adopted in AI-capable laptops and wearables, with 2026 poised to be a breakout year for edge computing, driving future growth.
- Technological Outlook: The CEO highlighted that 2026 will present a major opportunity for edge computing, as AI data centers encounter capacity constraints, making Qualcomm's processors a crucial choice for the AI industry due to their processing efficiency and superior memory bandwidth.
- Investor Confidence: Although the memory shortage remains a concern, analysts believe that Qualcomm's stock price has already absorbed most negative news, suggesting that investors may sense a market recovery before the supply issues are resolved, reflecting confidence in future growth.
See More
UK Consumers' Association Withdraws Lawsuit Against Qualcomm
- Lawsuit Withdrawal: The UK's Consumers' Association, Which?, announced the withdrawal of its lawsuit against Qualcomm, which accused the company of abusing its dominant position to force Apple and Samsung to pay inflated royalties, indicating the case's weak legal foundation.
- Consumer Impact: Representing 29 million UK consumers, Which? sought over £480 million in reimbursement for inflated prices due to alleged anticompetitive practices, but ultimately did not secure any compensation.
- Legal Findings: Following the trial, Which? concluded that Qualcomm's practices did not infringe competition laws or lead to increased royalties, affirming that Qualcomm's licensing requirements are lawful and do not harm competition.
- Market Reaction: A Qualcomm spokesperson stated that the withdrawal reaffirms U.S. court rulings on the legality of its licensing practices, although market sentiment remains cautious regarding Qualcomm's future performance, reflecting investor concerns about the company's outlook.
See More
Three Resilient Stocks to Consider
- Qualcomm's Market Performance: Qualcomm (QCOM) has seen a 23% decline in its stock price since early January; however, despite challenges from memory chip shortages, demand for its high-performance processors remains strong, and as memory manufacturers recover, Qualcomm is expected to increase shipments, improving market performance.
- Remitly's Growth Potential: Remitly Global (RELY) successfully facilitated $19.5 billion in transfers in Q3 last year, a 35% year-over-year increase, generating $419.5 million in revenue with EBITDA of $61.2 million, up 29%, and analysts expect this growth momentum to continue through 2028, showcasing its strong competitive position in the international payments market.
- The Trade Desk's Value Recovery: The Trade Desk (TTD) has been impacted by the overall market downturn, but its revenue is projected to grow by 16% in 2023, with a current P/E ratio of only 12 times, indicating investment value, as the market has yet to recognize its necessity.
- Market Environment Challenges: While the overall market faces uncertainty, stocks like Qualcomm, Remitly, and The Trade Desk demonstrate strong resilience, suggesting that investors may consider these potential stocks for long-term gains amid market volatility.
See More
Cisco Shares Plunge Due to Rising Memory Prices
- Significant Stock Drop: Cisco shares plummeted by as much as 12% on Thursday, marking the worst single-day decline since 2022, primarily due to rising memory prices exerting pressure on the company's margins, reflecting market concerns about its future profitability.
- Memory Shortage Impact: The global memory shortage, driven by strong demand for AI chips from Nvidia, poses challenges for Cisco as production costs soar, particularly with large data center memory orders limiting the production capacity for other devices, further exacerbating market uncertainty.
- Lackluster Financial Outlook: Although Cisco reported better-than-expected quarterly results, the stock still dropped about 7% due to the company issuing a mediocre forecast, indicating insufficient investor confidence in future growth prospects.
- Strategic Response Adjustments: CEO Chuck Robbins stated that Cisco will respond to rising memory prices by raising prices, revising contracts, and renegotiating terms, while CFO Mark Patterson emphasized controlling what can be controlled to mitigate cost pressures.
See More
Cisco Shares Plunge 12% Amid Margin Pressure from Rising Memory Prices
- Stock Plunge: Cisco shares fell 12% on Thursday, marking the largest single-day drop in four years, primarily due to rising memory prices exerting pressure on the company's margins, reflecting market concerns about its future profitability.
- Memory Shortage Impact: The global shortage of memory, driven by strong demand for AI chips, has skyrocketed component costs, affecting Cisco and other tech companies, including Apple and Dell, which are also feeling the pinch from increased expenses.
- Financial Response: CEO Chuck Robbins stated during the earnings call that Cisco will raise prices, revise contracts, and negotiate terms to adapt to evolving component prices, aiming to control what can be managed amid rising costs.
- Declining Gross Margin: Although Cisco reported better-than-expected quarterly results, its product gross margin fell to 66.4%, down 130 basis points from the previous year, highlighting the challenges the company faces in managing rising costs.
See More
2 Factors Making Qualcomm's Risk/Reward Profile Extremely Attractive
Qualcomm's Stock Performance: Qualcomm has experienced a significant decline in its stock price, dropping as much as 13% recently, marking one of its worst starts to the year, but has shown signs of recovery with four consecutive days of gains.
Investor Sentiment: Despite the recent downturn, investors appear to believe that the market has overreacted, as indicated by the stock's relative strength index (RSI) being historically low, suggesting potential for recovery.
Technical Analysis: The stock is currently considered extremely oversold, with analysts noting that similar conditions in the past have led to substantial recoveries, indicating a potential buying opportunity for investors.
Analyst Ratings: Several analysts have upgraded Qualcomm to a "buy" rating with price targets significantly above its current trading levels, suggesting strong upside potential and reflecting a growing bullish sentiment in the analyst community.
See More
