From Nasdaq: 2025-01-20 08:30:00

Qualcomm (NASDAQ: QCOM) had a tumultuous 2024 with shares rising 57% before plummeting over 30%. However, a new bullish cycle may be on the horizon in 2025, with shares already up over 7% yearly and analysts predicting a 21% upside based on price targets from Barclays and Mizuho.

Qualcomm’s Apple problem has been a long-standing issue, with Apple transitioning to its own 5G modems by 2027. Qualcomm has diversified its business significantly, with automotive and IoT segments surpassing its Apple revenue. The company expects strong growth in these segments, with IoT revenues projected to grow by more than 20% and automotive revenues by 50%.

Qualcomm secured a win in its litigation with ARM over AI-PC chips, allowing the company to continue selling components and grow its PC business. Despite reports of compatibility issues with popular games, Qualcomm aims to capture billions in revenue from the AI-enabled laptop market, offering chips at a lower price point.

With key issues resolved and growth drivers in place, Qualcomm is poised for a successful 2025. The company’s automotive and IoT segments show promise, offsetting the decline in Apple revenue. Additionally, Qualcomm offers a solid dividend yield of 2%, making it an attractive option for investors in the semiconductor space.



Read more at Nasdaq:: Momentum Is Building for Qualcomm to Have a Strong Run in 2025