From NASDAQ.:

Qualcomm stock (NASDAQ: QCOM) currently trades at $153 per share, roughly 20% below its pre-inflation shock high of $189 in December 2021, but has the potential for meaningful gains. The tough performance of Qualcomm stock has been due to a slowdown in the smartphone and tablet market amid cooling consumer spending. However, things have been improving, with revenue from handsets increasing by 16% year-over-year to $6.69 billion.

Returning to the pre-inflation shock level means that Qualcomm stock will have to gain 24% from here. Our detailed analysis of Qualcomm’s upside post-inflation shock captures trends in the company’s stock during turbulent market conditions seen over the last year. Consistently beating the S&P 500 has been challenging for individual stocks, and even for the megacap stars like Google, Tesla, and Amazon. Yet, the Trefis High Quality (HQ) Portfolio outperformed the S&P 500 each year over the last few years.

In contrast, here’s how QCOM stock and the broader market performed during the 2007/2008 crisis. Qualcomm’s fundamentals have seen growth, with revenue rising from $24 billion in FY’19 to $35.8 billion in FY’23. The company garnered $11.3 billion in cash flows from operations in 2023 and has a comfortable liquidity position of close to $12 billion as of the last quarter. While Qualcomm stock could benefit from easing inflation and the Fed’s recent indication that it could cut interest rates, the company could be weighed down by a mixed smartphone market.

Overall, Qualcomm stock has seen little change compared to the S&P 500 performance, but the company’s fundamentals have been stable. Keeping an eye on the potential impact of a mixed smartphone market on future performance would be prudent.



Read more: Will Qualcomm Stock Return To Pre-Inflation Shock Highs Of $189?