From Nasdaq:

Investors are eyeing the growth potential of artificial intelligence (AI) across various industries. Specialized semiconductor chips are a key component for advanced AI tasks, spurring growth in the global chip industry. Qualcomm (QCOM) is a player to watch as AI deployment expands, boasting a strong fiscal Q1 performance and plans for AI integration.

Qualcomm Inc (QCOM) is a major player in the semiconductor industry, with a market cap of $182 billion. The stock has seen a 15% YTD gain, outperforming the Nasdaq-100 Index. Despite this, QCOM remains reasonably valued with a forward earnings multiple of 16.86x, offering a dividend yield of 1.96% and a track record of consistent dividend growth.

In its fiscal first quarter, Qualcomm reported revenues of $9.9 billion, up 5% year-over-year, beating Wall Street expectations. Earnings per share (EPS) rose 16% to $2.75, surpassing estimates. Analysts expect further earnings and revenue growth for the company in fiscal years 2024 and 2025, showcasing a positive outlook for Qualcomm.

Qualcomm is positioning itself to benefit from the next wave of AI deployment, expanding its agreements with key device partners like Apple and Samsung. The company’s Snapdragon platforms are already being incorporated into flagship devices, solidifying its presence in the mobile market. Moreover, Qualcomm’s portfolio extends beyond smartphones to automotive technology, mixed reality, and IoT devices.

Analysts have a “Moderate Buy” rating on QCOM stock, with a mean target price of $150.38. Several analysts maintain a Street-high target price of $180, indicating an upside potential of about 7.8% from current levels. With a strong performance in fiscal Q1 and a focus on AI integration, Qualcomm remains a stock to watch for investors.



Read more at Nasdaq: Up 15% YTD, Is Qualcomm Stock Still a Buy?