QCOM QUALCOMM Incorporated
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Daily prices, adjusted for splits. P/E and P/S value each day on the results published by then; a gap in P/E means the trailing year had no profit.
Semiconductors · San Diego, CA · 52,000 employees · qualcomm.com
Qualcomm designs and supplies foundational wireless communication technologies and semiconductor components globally. The company makes money primarily by selling integrated circuits and system software for mobile phones, vehicles, and connected hardware, while also collecting royalties from licensing its cellular intellectual property.
Bull case
The business converts a healthy portion of revenue into free cash flow after accounting for stock-based compensation. Furthermore, its wide competitive moat yields returns on capital that comfortably exceed its cost of capital, complemented by demand for products consumed by artificial intelligence workloads.
- The price assumes about +11% a year cash-flow growth; it delivered +17% a year over three years.
- Turns 16% of revenue into free cash after stock pay.
- Returns on capital run well above its cost of capital.
- The share price trend is rising.
Bear case
Top-line growth has decelerated noticeably, marked by back-to-back quarters of year-over-year revenue declines.
- Revenue has fallen year on year for two quarters running.
- Trades at the 72nd percentile of its own valuation history.
Features
- V-WIDE-MOAT Wide moat Returns on capital run well above its cost of capital.
- V-DECELERATING Growth slowing Annual revenue growth fell from +16% to +2%.
- F-ANALYST-BEARISH Analysts cautious Only 30% of analysts rate it positively.
AI impact
Supplies what AI runs on Tailwind
The company designs and sells semiconductor chips and platforms for smartphones, personal computers, and connected devices. Demand for on-device AI processing boosts the need for its low-power processors. However, the company faces competition from rivals also developing on-device AI chips, which challenges its ability to maintain product differentiation.
Where AI helps it
- Sells what AI workloads consume
Where AI could hurt it
- AI makes it cheaper for rivals to build what it sells (minor)
In the company's words
With increased processing power, smartphones and PCs are becoming pervasive AI platforms, with complex, large generative AI algorithms running on-device, enabling on-demand and contextual AI use cases at a fraction of the energy required by cloud-based applications.
Companies that provide on-device AI, high-performance and low-power computing and wireless connectivity-based integrated circuit products and/or software are generally competitors or potential competitors.
Assessed by AI from the company's own annual report filed 5 Nov 2025 and quarterly report filed 29 Jul 2026. A reading of the business, not a forecast or a recommendation.
Valuation position
QCOM is at the 72nd percentile of its own valuation history. Depending on how far back you look, it ranges from the 72nd to the 95th percentile. This is a relative measurement, not a price target or recommendation, and it assumes the business is still the one its history describes.
Price ladder
The measured price sits in the Above reference zone. These are reference zones, not buy instructions or forecasts that the prices will be reached.
Confirmed break: at least one break condition is active.
This ladder rests on the company's own valuation history alone: there are too few comparable companies to cross-check it, so treat its zones as less certain.
What the price assumes
The measured price implies roughly +10.8% annual cash-flow growth, between +4.1% and +15.7% under other reasonable assumptions. Over the last three years it delivered +17.3% a year.
An estimate that depends on its assumptions, not a forecast.
Quality versus peers
Each dimension is shown on its own; they are not combined into a score.
Current analyst snapshot
Shown for reference only; not used in any measurement.
What would have to break
- Triggered — Revenue decline
- Not available — Margin break
- Not triggered — Cash burn with rising debt
- Not triggered — Heavy dilution
- Not triggered — Warning language in filings
News
No recent brief on this company.