With a market cap of $173.4 billion, QUALCOMM Incorporated (QCOM) is a leading semiconductor and wireless technology company known for developing mobile connectivity innovations and powering much of the global smartphone ecosystem. Best known for its Snapdragon chipsets and advanced 5G modems, Qualcomm supplies high-performance SoCs widely used in Android devices and also holds a valuable patent portfolio that generates major revenue through technology licensing. The San Diego, California-based company’s business operates primarily through chip sales (QCT) and licensing royalties (QTL), giving it both volume and high-margin revenue.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Qualcomm fits this criterion perfectly. Its key competitive strengths include its dominant patent portfolio and licensing model, which generate strong, recurring, high-margin revenue and give it influence over global wireless standards such as 4G and 5G. Its Snapdragon platform delivers industry-leading performance and connectivity, making it a top choice for premium and flagship smartphones.
Qualcomm also benefits from a fabless business model, allowing efficient scaling without heavy manufacturing costs, and a diverse product strategy that stretches beyond smartphones into automotive, IoT, and edge-AI computing, reducing dependence on any single market.
Shares of QCOM declined 20.7% from its 52-week high of $205.95 touched on Oct. 27. QCOM stock has surged 4.4% over the past three months, underperforming the Nasdaq Composite’s ($NASX) 7.4% rise over the same time frame.
In 2025, QCOM shares have risen 6.3%, lagging behind the NASDAQ's 19.2% rally over the same period. Moreover, QCOM's shares have increased 2.8% over the past year, trailing the $NASX’s 20.8% rise.
QCOM shares have been trading above their 200-day moving averages since the end of August, but have dipped below their 50-day moving average recently.
On Nov. 5, QUALCOMM released its fiscal 2025 Q4 results, and its shares rose 4%. The company reported revenue of $11.27 billion, up 10% year over year, driven by strong momentum in its semiconductor division. QCT revenue climbed to $9.82 billion, with handset sales advancing 14% and automotive and IoT segments growing 17% and 7% respectively, reflecting successful diversification beyond smartphones. Non-GAAP EPS came in at $3, beating analyst expectations.
In comparison, rival NVIDIA Corporation (NVDA) has outperformed QCOM considerably, gaining 30.7% over the past 52 weeks and 32.4% on a YTD basis.
Nevertheless, the stock has a consensus rating of “Moderate Buy” from the 29 analysts covering it, and its mean price target of $192.36 represents a premium of 17.8% from the prevailing market prices.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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