Ricardo Pillai
2 min read
In This Article:
We came across a bullish thesis on QUALCOMM Incorporated (QCOM) on Substack by Christopher Kirincic. In this article, we will summarize the bulls’ thesis on QCOM. QUALCOMM Incorporated (QCOM)'s share was trading at $152.50 as of May 16th. QCOM’s trailing and forward P/E were 15.56 and 12.99 respectively according to Yahoo Finance.
A macro view of a 5G/4G chips and modules, displaying the cutting edge technology of the company.
Qualcomm (QCOM) is widely recognized for its leading role in designing chips and wireless technologies that power most smartphones globally, particularly through its dominant 5G modems and Snapdragon mobile processors. However, the company’s recent growth story centers on its strategic expansion beyond smartphones into automotive, AI edge computing, and IoT markets. This diversification was highlighted in April when Qualcomm announced a strong pipeline in automotive and AI-driven devices, supported by steady licensing revenue that continues to generate reliable cash flow. Despite the inherent cyclicality of the smartphone market, Qualcomm’s broadening portfolio and deep intellectual property moat provide a compelling growth outlook through 2026.
Historically, Qualcomm has demonstrated consistent profitability and solid fundamentals, which supports a disciplined approach to investing based on valuation relative to historical norms. Currently trading at about 13 times 2025 earnings, QCOM sits near one of its best entry points seen in recent years, making it cheaper than during much of 2021 and 2024. Given its historical peak price-to-earnings ratio around 20x, there appears to be significant upside potential, with a conservative price target of $174—representing an 18% gain from current levels over the next two years—and an upside ceiling near $220. This combination of diversification, strong cash flow from licensing, and attractive valuation creates a favorable risk/reward profile for investors looking at Qualcomm as a long-term growth opportunity well beyond its smartphone roots.
QUALCOMM Incorporated (QCOM) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 79 hedge fund portfolios held QCOM at the end of the fourth quarter which was 74 in the previous quarter. While we acknowledge the risk and potential of QCOM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than QCOM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
