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San Diego, California-based QUALCOMM Incorporated (QCOM) operates as a multinational semiconductor and telecommunications equipment company. With a market cap of $181.5 billion, the company develops and delivers digital wireless communications products and services based on CDMA digital technology.
Shares of this semiconductor and equipment giant have underperformed the broader market over the past year. QCOM has gained 29.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 35.7%. In 2024, QCOM stock is up 10.9%, compared to the SPX’s 25.5% rise on a YTD basis.
Narrowing the focus, QCOM’s outperformance is apparent compared to the SPDR S&P Semiconductor ETF (XSD). The exchange-traded fund has gained about 27.5% over the past year. Moreover, QCOM’s low double-digit returns on a YTD basis outshine the ETF’s 4.4% gains over the same time frame.
QCOM's lackluster performance may be due to possible disruptions in its supply chain and increased competition.
On Nov. 6, QCOM shares closed up more than 4% after reporting its Q4 results. Its adjusted EPS of $2.69 exceeded Wall Street expectations of $2.56. The company’s revenue was $10.2 billion, topping Wall Street forecasts of $9.9 billion. For Q1, QCOM expects its adjusted EPS to be between $2.85 and $3.05, and expects revenue in the range of $10.5 billion to $11.3 billion.
For the current fiscal year, ending in September 2025, analysts expect QCOM’s EPS to grow 7% to $9.05 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 31 analysts covering QCOM stock, the consensus is a “Moderate Buy.” That’s based on 16 “Strong Buy” ratings, one “Moderate Buy,” 13 “Holds,” and one “Strong Sell.”
This configuration is less bullish than two months ago, with 17 analysts suggesting a “Strong Buy.”
On Nov. 12, Loop Capital initiated a “Hold” rating on QCOM with a $180 price target, implying a potential upside of 12.2% from current levels.
The mean price target of $211.79 represents a 32% premium to QCOM’s current price levels. The Street-high price target of $270 suggests an ambitious upside potential of 68.3%.
