QUALCOMM Incorporated (QCOM): A Bull Case Theory

Qualcomm has emerged from caller challenges arsenic a multi-dimensional tech powerhouse, driving maturation crossed mobile phones, automotive, and IoT segments portion positioning itself arsenic a cardinal subordinate successful the AI revolution. Its mobile division, up 7% year-on-year, benefits from an AI-driven replacement cycle, with on-device AI enabling ChatGPT, real-time translation, and representation editing without reliance connected the cloud. The Snapdragon 8 Gen 5 spot underpins this transformation, securing maturation among Android brands adjacent amid imaginable Apple competition.

Qualcomm’s automotive conception reported $984 cardinal successful revenue, a 21% increase, with its Snapdragon Digital Chassis powering cockpits, connectivity, and autonomous driving systems crossed starring automakers, delivering semipermanent “Design Win” contracts that committedness multi-year gross streams. The IoT business, rising 24% to $1.68 billion, combines concern sensors, astute location processors, and AI PCs, the second successful concern with Microsoft and large OEMs, challenging incumbents Intel and AMD portion enabling low-power, AI-enhanced Windows devices.

Qualcomm reported Q4 gross of $11.27 cardinal and non-GAAP EPS of $3.00, exceeding expectations, and projects Q1 FY26 gross of $12.2 cardinal and EPS of $3.40, reflecting continued momentum. Valuation metrics bespeak important upside, with a guardant P/E of 12.6x versus a just worth scope of $207–$276 and DCF estimates of $195–$220 per share.

Risks see imaginable Apple spot independence, Chinese marketplace competition, and economical sensitivity successful automotive and IoT sectors. Nonetheless, Qualcomm is evolving from a mobile spot supplier into a cornerstone of the AI infrastructure, driving the borderline computing gyration and offering a compelling semipermanent concern with aggregate catalysts, robust escaped currency flow, and strategical vulnerability crossed AI-enabled devices and systems.

Previously we covered a bullish thesis connected QUALCOMM Incorporated (QCOM) by Christopher Kirincic successful May 2025, which highlighted the company’s enactment successful 5G and Snapdragon processors, enlargement into automotive, AI borderline computing, and IoT, and beardown licensing currency flow. The banal has appreciated 10.22% since our coverage. The thesis inactive stands arsenic QCOM drives AI-enabled growth. Uncle Stock Notes shares a akin thesis but emphasizes on-device AI, AI PCs, automotive Design Wins, and updated Q4 2025 financials.