From Nasdaq: 2025-05-01 09:11:00

Qualcomm Inc. (NASDAQ: QCOM) has rallied over 20% in the past three weeks, leading up to their Q2 earnings report. Despite beating analyst expectations on revenue and earnings, shares dropped more than 5% in the pre-market session, indicating some skepticism from investors about the turnaround story.

Reason #1 to be bullish on Qualcomm: Strong earnings and guidance. The company reported non-GAAP EPS of $2.85, revenue of $10.98 billion, with segment strength across QCT, handset, automotive, and IoT units. Q3 revenue is expected to be between $9.9 billion and $10.7 billion, with EPS in the $2.60 to $2.80 range.

Reason #2 to be bullish on Qualcomm: It remains one of the cheapest chips around, trading at a P/E ratio of 15 compared to competitors like NVIDIA and AMD. Analysts at JP Morgan Chase have an Overweight rating and a $185 price target, implying nearly 30% upside. However, the market reaction post-earnings suggests a lack of institutional conviction in the stock.

Reason to be cautious: Despite strong numbers and a low valuation, institutional conviction in Qualcomm still appears lacking. The post-earnings selloff and the stock’s failure to recover from last summer’s drop indicate a lack of excitement and confidence from Wall Street. Until sentiment shifts, the stock may remain undervalued for a reason.



Read more at Nasdaq:: Qualcomm’s Earnings: 2 Reasons to Buy, 1 to Stay Away