QUALCOMM (QCOM) Stock Forecast & Price Target

Qualcomm demonstrated solid financial performance with QCT revenue reaching $9.82 billion, reflecting a 13% year-over-year growth, driven by strong demand in the premium Android market, automotive sector, and IoT applications. The company reported automotive revenue surpassing $1 billion for the first time (+17% Y/Y), highlighting the adoption of the Snapdragon Digital Chassis, alongside IoT revenue growth of 7% to $1.81 billion supported by industrial and networking demand. For FY25, Qualcomm's QCT revenue increased by 16% year-over-year to $38.37 billion, with an earnings before tax (EBT) of $11.67 billion, indicative of robust operational efficacy and margins remaining consistent with long-term targets at 30%.

Qualcomm faces a negative outlook primarily due to its slower-than-expected expansion into the data center market, which could adversely affect overall revenues. Additionally, the firm is experiencing a slower adoption rate of next-generation 5G smartphones compared to prior estimates, further impacting its financial performance. Finally, ongoing regional and global economic slowdowns are likely to reduce consumer and corporate spending, including expenditures on smartphone upgrades, which may negatively influence Qualcomm's sales.