Qualcomm Stock Price - NASDAQ:QCOM at $157 Base With AI, IoT, and Automotive Growth

NASDAQ:QCOM Stock Defends $157 as AI, IoT and Automotive Revenues Drive Growth

Qualcomm (NASDAQ:QCOM) ended the latest session at $157.28, down 0.94% after touching lows of $156.06, with volume at 6.08 million versus the 7.95 million average. Despite near-term volatility, the stock has shown resilience around its 200-day moving average of $155.82, and its valuation remains attractive at a forward P/E of 13.12, well below peers such as Broadcom at 23x or NVIDIA above 35x. Qualcomm’s fundamentals are being reshaped by the scale-up of its non-handset revenues, particularly automotive and IoT, and analysts are beginning to recognize this diversification with targets ranging between $175 and $225.

Earnings Momentum Shows QCOM Outperforming on Margins

In Q3 2025, Qualcomm posted revenue of $10.37 billion, up 10.4% year-on-year, beating consensus by $40 million. Non-GAAP EPS landed at $2.77, above the $2.71 forecast, with GAAP EPS at $2.43. Net margins were 26.77%, and return on equity hit 40.35%, confirming efficiency across its licensing-heavy business model. The QCT segment delivered a 30% EBT margin, up from 27% last year, reflecting operating leverage from AI-enabled Snapdragon products. IoT sales surged 24% to $1.68 billion, now 16.2% of group revenue, while automotive revenue grew 21% year-on-year, making up 9.4% of sales. Qualcomm now sees combined automotive and IoT revenues of $10.5 billion annually, targeting $22 billion by FY2029.

AI and Data Center Push Positions QCOM for Hyperscaler Growth

Qualcomm is aggressively entering AI infrastructure, with its $2.4 billion acquisition of Alphawave IP expected to close in Q1 2026. This deal strengthens QCOM’s position in high-speed interconnects, critical for hyperscale data centers and AI training clusters. Management noted “advanced discussions with a leading hyperscaler” for FY2028 revenues, signaling a potential long-term catalyst not yet reflected in current forecasts. Snapdragon AI platforms also underpin growth in consumer products, from Meta’s AR glasses to Samsung’s Galaxy AI features, which 70% of Galaxy S25 users now engage with. The upcoming Snapdragon Summit (September 23–25) will showcase the next wave of AI-driven chipsets, and market sentiment could shift rapidly if Qualcomm demonstrates further innovation in edge AI and infrastructure solutions.

Dividend Strength and Insider Transactions at QCOM

Qualcomm declared a $0.89 quarterly dividend payable September 25, equivalent to $3.56 annually and a 2.24% yield at current prices. The payout ratio stands at 34.33%, leaving significant headroom given $12.66 billion in operating cash flow and $5.47 billion in free cash flow over the last year. Insider activity reflects mixed signals: CAO Patricia Grech sold 236 shares at $158.36, while Neil Martin sold 791 shares at $154.82. Across the last 90 days, insiders sold 9,293 shares worth $1.43 million, representing only 0.08% of shares outstanding. A full breakdown is available on the Qualcomm insider transactions page. Despite these sales, institutional ownership remains high at 81.09%, with Russell Investments recently increasing its stake by 145,509 shares, now holding 1.33 million shares worth $203.9 million.

Valuation Discounts Keep QCOM Attractive Against Peers

At a market cap of $169.7 billion, QCOM trades at just 4.1x trailing sales and 12x EV/EBITDA, compared to the semiconductor sector median near 7x sales and 18x EV/EBITDA. Price-to-book sits at 6.3, and its PEG ratio of 1.82 suggests growth-adjusted undervaluation relative to larger peers. Forward EPS for FY2025 is guided at $11.89, with consensus estimating $12.08 in FY2026, though upside revisions are possible if AI and automotive growth outpace expectations. The average analyst target is $182.82, with highs of $225, implying 15–40% upside from current levels.

Legal and Regulatory Overhangs Remain a Factor

Qualcomm resolved a $75 million investor settlement over anticompetitive licensing practices earlier this year, closing a case that stretched back to 2017. While this removes legal uncertainty, scrutiny of Qualcomm’s licensing model persists. Investors must also weigh potential headwinds from Apple, where Qualcomm expects to see its modem share in 2025 iPhone launches fall to ~70%. Management is confident that Android momentum and diversification will offset any earnings drag, particularly with its AI-driven X85 modem gaining traction.

Final Assessment: NASDAQ:QCOM Balances Near-Term Volatility With Long-Term Upside

With shares consolidating around $157 and dividend support, Qualcomm remains a compelling technology value stock. The company’s ability to post $10.4 billion in quarterly revenue while expanding margins underscores operational strength. Its pivot into AI infrastructure, automotive, and IoT provides a diversified growth runway, while valuation discounts leave room for upside repricing. Insider selling has been modest compared to institutional accumulation, and catalysts such as the Snapdragon Summit could act as short-term sentiment drivers. On balance, the data supports a Buy rating on NASDAQ:QCOM, with medium-term price targets ranging from $182 to $200, and potential longer-term upside if hyperscaler AI contracts materialize.

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