QUALCOMM Incorporated (QCOM)
OvervaluedFundamental
67
Price
$183.63
Market Cap
$207.48B
Part 1 · What the company is worth
Overview
Qualcomm designs the modem and processor chips that let phones, cars and other devices connect to cellular networks, and separately licenses the patents behind wireless standards to nearly every phone maker in the world, collecting a fee even on phones that use a competitor's chip. It owns no factories, having its chips built by outside foundries. Historically a smartphone-chip company, it is pushing into automotive computing and connected devices as smartphone growth slows.
How it makes money
Most revenue comes from selling chips (QCT): Qualcomm books a sale each time a phone maker buys a modem or processor, priced on performance and features. A separate stream (QTL) collects a licensing royalty, typically a percentage of a phone's selling price, on nearly all 3G/4G/5G devices sold worldwide regardless of whose chip they use. Licensing carries far higher margins than chip sales because it has almost no associated manufacturing cost.
Revenue by segment
Modem and processor chips sold to smartphone makers, still Qualcomm's largest single source of revenue.
Chips for connected devices outside phones — industrial equipment, wearables, networking gear and other always-connected products.
Patent-licensing royalties collected on nearly all 3G, 4G and 5G phones sold worldwide, independent of who supplies the chip.
Computing and connectivity chips sold to carmakers for infotainment and driver-assistance systems, Qualcomm's fastest-growing chip business.
Residual revenue and unallocated corporate items outside Qualcomm's main reported chip and licensing categories.
Competitive moat
Patents and licences · NarrowQualcomm's patents on 3G, 4G and 5G standards let it collect a royalty on almost any cellular phone sold, a durable advantage that survives even when a rival wins the chip sale. The chip business itself is more exposed: Apple has moved to build its own modems, and MediaTek competes hard on price in mid-range Android phones.
What drives demand
CyclicalChip revenue tracks global smartphone shipment volumes, which rise and fall with consumer spending and inventory cycles at phone makers, while licensing revenue is steadier because it is tied to the much larger installed base of devices sold under multi-year patent agreements. Automotive and IoT are newer, smaller cycles layered on top.
Key risks
- Apple in-sourcing modems — Apple, historically a major chip customer, is developing its own cellular modems and is expected to eventually stop buying Qualcomm chips, removing a large customer over time.
- Customer concentration — A small number of large customers, including Apple, Samsung and Xiaomi, each account for a meaningful share of revenue; losing or shrinking any one of them affects results directly.
- China exposure — A significant share of revenue is tied to Chinese device makers and to sales into China, exposing Qualcomm to trade restrictions, licensing disputes and competition encouraged by Chinese industrial policy.
- Licensing disputes — Qualcomm's patent-licensing revenue depends on agreements that counterparties periodically challenge or renegotiate, and adverse rulings or regulatory action against its licensing practices could reduce this high-margin income stream.
Customer concentration
Qualcomm discloses that Apple, Samsung and Xiaomi each individually account for 10% or more of revenue, without giving a combined figure. Apple is separately transitioning to its own modem chips, directly reducing this customer's future purchases.
The case for
Buyers argue that Qualcomm's patent portfolio keeps generating high-margin royalties on nearly every cellular phone sold regardless of chip supplier, while new chip businesses in automotive and connected devices diversify the company away from its dependence on smartphone volumes.
The case against
Sellers worry that Apple's shift to in-house modems removes a major customer over several years, that Chinese chipmakers are closing the technology gap in mid-range phones, and that licensing income remains exposed to periodic legal challenges from large counterparties.
Written by the editors, published on August 18, 2026
Direct competitors
Who this company fights with for the same customers
No editorial profile for this company yet
No competitor list for this company yet.
Balance Sheet & Liquidity
Revenue
$44.07B
Trailing 12 months (through 6/28/2026)
Net Income
$9.26B
Trailing 12 months (through 6/28/2026)
Free Cash Flow
$12.82B
Total Equity
$21.21B
Total Liabilities
$28.94B
Current Ratio
2.02
Interest Coverage
14.85
Debt/EBITDA
1.09
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$147.16
Current Price
$183.63
Margin of Safety
-24.8%
Fair Value Range
$100.11 - $194.20
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
21.01
ROE
26.1%
P/B Ratio
6.99
P/FCF
18.55
Gross Margin
54.2%
ROIC
17.6%
Profitability Radar
Value Creation (Economic Moat)
ROIC
17.6%
WACC
13.2%
ROIC − WACC
+4.4 pp
ROIC exceeds the cost of capital — the company is creating value for shareholders.
Fundamental Analysis Criteria
Passed (19)
- EPS shows upward trend
- EPS CAGR 5.38%
- Price CAGR 11.71%
- ROIC 17.6%
- Gross Margin 54.2%
- P/FCF 18.55
- Debt/Equity ratio
- Operating Margin 23.2%
- Positive Free Cash Flow
- CapEx intensity
- Current Ratio
- Interest Coverage
- Debt/EBITDA
- Return on Tangible Assets
- ROE 37.3%
- Revenue Growth 5Y 15.3%
- Earnings Quality (OCF/NI) 1.34
- Share Dilution -2.2%
- Piotroski F-Score 6/9
Failed (8)
- P/B Ratio 6.99
- Low reliance on intangibles
- Price below Graham Number
- DCF valuation (Overvalued)
- Analyst Consensus 41% Buy
- Earnings Surprise avg 0.4%
- PEG Ratio 10.55
- Net Margin Trend 21.0% vs 26.8%
Unavailable (1)
- Dividend Payout NaN%
Piotroski F-Score
Mixed signals: some areas need attention
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Buying back shares. Shareholder friendly
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Cristiano Renno Amon | CEO, President & Director | 55 |
| Mr. Akash Palkhiwala | Executive VP, CFO & COO | 49 |
| Ms. Ann N. Cathcart Chaplin | Executive VP, General Counsel & Corporate Secretary | 52 |
| Mr. Alexander H. Rogers J.D. | Executive VP, President of Qualcomm Technology Licensing (QTL) & Global Affairs | 68 |
| Dr. Baaziz Achour | Executive VP & Chief Technology Officer of Qualcomm Technologies, Inc. | 63 |
| Ms. Patricia Y. Grech | Senior VP & Chief Accounting Officer | 53 |
| Mr. Brett William Simpson | Senior Vice President of Investor Relations | 51 |
| Mr. Don McGuire | Executive VP & Chief Marketing Officer | - |
| Mr. Colin Ryan | Executive VP and Chief Strategy & Corporate Development Officer | - |
| Ms. Heather Ace J.D. | Executive VP & Chief Human Resources Officer | 55 |
Audit Risk
2
Board Risk
3
Compensation Risk
3
Shareholder Rights Risk
7
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2025-11-05
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-07-29
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-09-08
via SEC EDGAR
Income History
via SEC EDGAR
Latest News
Recent headlines for QCOM, sourced from Markets Gazette.
- 7d agoPOSITIVEQualcomm rinnova l'accordo globale di licenza di brevetti con Apple
Qualcomm has announced a global patent license agreement renewal with Apple, effective April 1, 2027. This multi-year deal secures a crucial revenue stream for Qualcomm, extending their relationship beyond the current agreement. While specific financial terms were not disclosed, the renewal removes significant uncertainty for investors regarding the future of their licensing business with Apple, a key customer. This development is expected to provide stability and continued profitability for Qualcomm's licensing division, reinforcing its market position in mobile technology.
- 10d agoPOSITIVEQualcomm (QCOM) +8%: torna il rally AI prima dello Snapdragon Summit
Qualcomm Inc. (QCOM) shares surged over 8% on Monday, driven by a resurgence of investor interest in AI and semiconductor stocks. This rally was fueled by renewed optimism regarding industry spending prospects, coupled with a supportive market environment characterized by falling oil prices and lower Treasury yields. The uplift provided relief to growth-oriented tech stocks, which are sensitive to borrowing costs. The Philadelphia Semiconductor Index also saw a significant gain of approximately 4%, indicating broad strength in the chip sector. Investors are anticipating positive developments ahead of the upcoming Snapdragon Summit.
- 16d agoPOSITIVEQualcomm +3,9% dopo accordo con AWS che rafforza i piani per i data center
Qualcomm shares surged 3.9% following StoneX's reaffirmation of a Buy rating and a $270 price target. The upgrade highlights Qualcomm's expanding ambitions in the data center sector and its growing engagement with hyperscale clients. This strategic move aims to diversify Qualcomm's revenue streams beyond its core, albeit volatile, smartphone business. A key development supporting this long-term data center strategy is the company's recent agreement with Amazon Web Services (AWS), announced on September 8th. Under this partnership, Qualcomm will supply customized silicon and advanced solutions, signaling a significant step in its diversification efforts and potential for future growth in the cloud infrastructure market.
- 23d agoPOSITIVEQualcomm tonica a Wall Street su annuncio partnership con Amazon per chip data center
Qualcomm Inc. shares surged approximately 3% on Wall Street following the announcement of a multi-year partnership with Amazon. This collaboration focuses on the large-scale production of chips, signaling a significant expansion for Qualcomm into the data center market. The deal is expected to bolster Qualcomm's revenue streams and solidify its position as a key supplier for major cloud providers. Investors are viewing this development positively, anticipating increased demand for Qualcomm's advanced semiconductor technology and a potential boost to its market share in the competitive data center infrastructure space.
- 7/29/2026NEGATIVEQualcomm’s stock falls as memory woes weigh on earnings
Qualcomm Inc. experienced a stock decline following its latest earnings report, which missed analyst expectations due to significant challenges in the memory market. The company's financial performance was negatively impacted by these memory-related issues, leading to a shortfall in its bottom line. Investors are closely watching how Qualcomm navigates these supply chain and pricing pressures within the memory segment, as it directly affects profitability and future growth prospects for the semiconductor giant.
- 7/8/2026NEUTRALHow Qualcomm’s CIO is placing big bets on AI to support the chip company’s diversification push
Qualcomm's Chief Information Officer, Attila Tinic, is advocating for increased internal adoption of Artificial Intelligence (AI) technologies. This strategic push is intended to bolster the semiconductor giant's ongoing diversification initiatives. While the specific AI applications and their direct financial impact are not detailed, the CIO's focus suggests a forward-looking approach to operational efficiency and innovation. Investors will monitor how these AI investments translate into tangible business outcomes and support Qualcomm's strategic goals in a competitive tech landscape.
- 6/27/2026POSITIVEQualcomm’s big AI gamble: Breaking Nvidia’s chips stronghold
Qualcomm CEO Cristiano Amon is strategically positioning the company to challenge Nvidia's dominance in the lucrative data center AI chip market. The company has reportedly secured early commitments from major tech players, including Meta and Microsoft, as clients for its upcoming AI-focused processors. This move signals Qualcomm's ambition to diversify beyond its traditional mobile chip business and tap into the rapidly expanding AI infrastructure sector. For investors, this represents a significant growth opportunity, potentially unlocking new revenue streams and enhancing Qualcomm's competitive standing in the high-demand AI hardware space.
via Markets Gazette