Home

Stock Ideas

Long Ideas

Tech

Summary

Qualcomm (QCOM) is diversifying beyond Handsets, driven by a seamless Automotive execution. Doing a DCF-valuation gives us an average price target of $235.5, or a 7.5% upside from current price.

QCOM has considerably beaten its revenue projections for Automotive&IoT, and it has also identified key trends that will help boost its growth, like PCs processing need for agentic AI orchestration.

Handsets subsegment faces near-term headwinds from DRAM shortages, but management guided for a quicker recovery than expected, bottoming in Q3-2026 and then resuming growth.

Geopolitical risks and customer vertical integration remain key threats, but segment diversification should support multiple expansion if growth targets are met.

adventtr/iStock via Getty Images

Thesis

While Qualcomm's ( QCOM ) Handsets legacy business subsegment is facing short-term headwinds from DRAM shortages and Apple's exit, Handsets is expected to be a strong revenue source in the long-term,…