QUALCOMM (QCOM) Stock Forecast & Price Target

Qualcomm's recent financial performance demonstrates robust growth in its key segments, with total revenue from the Qualcomm CDMA Technologies (QCT) division rising 11% year-over-year to $9.0 billion, driven by strong demand in handsets, IoT, and automotive markets. Notably, the IoT sector saw a remarkable 24% year-over-year increase to $1.7 billion, underpinned by heightened interest in industrial applications and AI-enabled edge computing. Additionally, Qualcomm's technology licensing revenue (QTL) grew 4% year-over-year to $1.3 billion, while maintaining impressive earnings before tax margins of 71%, signaling the company's solid position in the wireless technology landscape.

Qualcomm's revenue guidance for the fourth quarter reflects a slight decline compared to previous estimates, with expectations set at $10.3 billion to $11.1 billion, indicating challenges in achieving growth. There is also a noted decrease in Apple-related revenue, attributed to a lower launch share, which raises concerns about the company's reliance on key partnerships. Furthermore, Qualcomm faces significant hurdles in expanding into the data center market, with an inability to finalize agreements with a leading hyperscaler contributing to a bleak outlook, leading to lowered revenue estimates for the coming quarter.