QUALCOMM’s Mixed Performance: Gains and Setbacks in the Semiconductor Market
San Diego, California-based QUALCOMM Incorporated (QCOM) is a leading player in the semiconductor and telecommunications equipment industry. With a market capitalization of $181.5 billion, the company specializes in digital wireless communications products and services rooted in CDMA digital technology.
QCOM vs. The Market: A Year of Underperformance
Over the past year, shares of QUALCOMM have lagged behind the broader market. While QCOM saw a 29.5% increase, the S&P 500 Index ($SPX) surged nearly 35.7%. In 2024 alone, QCOM stock is up 10.9%, compared to a 25.5% jump in the SPX.
Comparison to Semiconductor ETF
Looking specifically at the semiconductor sector, QCOM outperformed the SPDR S&P Semiconductor ETF (XSD), which gained about 27.5% in the same period. Furthermore, QCOM’s year-to-date returns in the low double digits overshadow the ETF’s modest 4.4% increase.
Supply Chain and Competition Challenges
QUALCOMM’s struggles may stem from supply chain disruptions and heightened competition in the field.
Recent Earnings Report Boosts Stock
On November 6, shares of QCOM rose by more than 4% after the company released its Q4 results. The adjusted EPS was $2.69, surpassing Wall Street’s expectation of $2.56. Additionally, revenue reached $10.2 billion, beating the forecast of $9.9 billion. For Q1, QCOM anticipates an adjusted EPS between $2.85 and $3.05 and expects revenue between $10.5 billion and $11.3 billion.
Future Earnings and Analyst Outlook
For the fiscal year ending September 2025, analysts predict a 7% increase in QCOM’s EPS to $9.05 per diluted share. The company has impressed the market by exceeding consensus estimates in the last four quarters.
Analysts’ Ratings Overview
Of the 31 analysts monitoring QCOM stock, the consensus opinion is a “Moderate Buy.” This figure includes 16 “Strong Buy” ratings, one “Moderate Buy,” 13 “Holds,” and one “Strong Sell.”
Recent Initiatives and Price Targets
Compared to two months ago, the outlook has become slightly less positive, as 17 analysts previously rated it a “Strong Buy.” Loop Capital recently assigned a “Hold” rating with a $180 price target, reflecting a potential upside of 12.2% from current levels. The average price target stands at $211.79, offering a 32% premium above QCOM’s current price, while the highest target of $270 indicates an ambitious increase of 68.3%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
