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San Diego, California-based QUALCOMM Incorporated (QCOM) is a fabless semiconductor company. With a market cap of $159.9 billion, QUALCOMM operates through Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL), and Qualcomm Strategic Initiatives (QSI) segments.
The semiconductor giant has significantly underperformed the broader market over the past year. QCOM stock has dropped 9.6% over the past 52 weeks and 3.5% on a YTD basis, compared to the S&P 500 Index’s ($SPX) 14.5% gains over the past year and 6.1% returns on a YTD basis.
Narrowing the focus, QCOM stock has also underperformed the Technology Select Sector SPDR Fund’s (XLK) 22% surge over the past 52 weeks and 10.6% gains in 2025.
QUALCOMM’s stock prices plunged 7.7% in the trading session after the release of its mixed Q3 results on Jul. 30. Supported by its diversification into different areas and growth in IoT revenues, the company’s total revenues for the quarter surged 10.3% year-over-year to $10.4 billion, surpassing the consensus estimates by 39 bps. However, the company’s handset revenues of $6.3 billion and automotive revenues of $984 million both fell short of Street expectations, which likely unsettled investor confidence.
On a more positive note, the company’s adjusted net income surged 14.8% year-over-year to $3 billion, and its adjusted EPS of $2.77 beat the consensus estimates by a significant margin.
For the full fiscal 2025, ending in September, analysts expect QCOM to deliver an adjusted EPS of $9.54, up 12.8% year-over-year. Furthermore, the company has a solid earnings surprise history. It has surpassed the Street’s bottom-line estimates in each of the past four quarters.
The stock has a consensus “Moderate Buy” rating overall. Of the 32 analysts covering the stock, opinions include 15 “Strong Buys,” one “Moderate Buy,” 15 “Holds,” and one “Strong Sell.”
This configuration has been mostly stable over the past three months.
On Jul. 31, Piper Sandler analyst Harsh Kumar lowered the firm's price target on QCOM from $190 to $175, but maintained an “Overweight” rating on the stock.
QCOM’s mean price target of $178.65 suggests a 20.6% upside potential. Meanwhile, the Street-high target of $225 represents a significant 51.8% premium to current price levels.
