QUALCOMM Incorporated (QCOM): A Bull Case Theory (2025)

Ricardo Pillai

Thu, Apr 10, 2025, 9:13 AM 3 min read

We came across abullish thesison QUALCOMM Incorporated (QCOM) on Substack by Charly AI. In this article, we will summarize the bulls’ thesis on QCOM. QUALCOMM Incorporated (QCOM)'s share was trading at $143.59 as of April 9^th. QCOM’s trailing and forward P/E were 15.49 and 12.35 respectively according to Yahoo Finance.

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Qualcomm (QCOM) is executing strongly across its key growth verticals, with automotive and IoT revenues soaring 61% and 36% year-over-year, respectively, thanks to the increasing adoption of its Snapdragon platforms. The company reported a 17% increase in total revenue last quarter, reaching $11.7 billion, and net income rose to $3.2 billion, or $2.83 per share, reflecting robust demand for its premium-tier chips across smartphones and PCs. Qualcomm’s high free cash flow margin of 32% underscores its operational strength and capital discipline, providing the flexibility to reinvest in growth, return capital to shareholders, or reduce debt. With a conservative debt-to-equity ratio of 0.54 and a solid return on equity of 42%, the company is not only financially sound but also efficient in driving shareholder value.

Positioned at the heart of emerging technology trends, Qualcomm is primed to benefit from AI integration and edge computing growth. Strategic partnerships with tech giants like Samsung and Google further enhance its competitive edge in mobile and PC ecosystems. Still, near-term headwinds remain, including geopolitical risks such as U.S.-China trade friction and the broader cyclicality of the semiconductor sector. The rise of in-house chip development by Apple and Samsung adds another layer of pressure, contributing to recent stock volatility. However, these short-term challenges do not detract from Qualcomm’s long-term narrative. Its undervalued P/E of 13.62, leadership in fast-growing markets, and a bold $22 billion target for non-handset revenues by 2029 present a compelling investment case. For long-term investors, the current turbulence may offer an attractive entry point, with a target price of $162.68 implying significant upside. Qualcomm's strategic direction, underpinned by high-margin segments and strong cash generation, sets the stage for durable multi-year growth, even as the company weathers temporary uncertainty in the macro and competitive landscape.

QUALCOMM Incorporated (QCOM) is not on our list of the30 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 thecheapest AI stock.