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How do professionals look at QCOM stock?

Qualcomm: a cheap, cash-rich chipmaker at 20x — and the most divided analyst coverage in this group

A 2-of-4 scorecard pairs cash-backed profits and a 21.6% free-cash-flow margin with revenue down about 3.5% and weakening price structure. The stock trades at 20x earnings, 30% below its high, and analysts are split — 42% Buy, 44% Hold, 14% Sell across 19 firms, with about 7% upside to a $193.97 target. Current price: $181.92.

Educational content only — not financial advice. Always do your own research. Fundamentals from restnvest (SEC 10-K, 2025-11-05) · Analyst data from Anachart (2026-07-01)
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Three lenses on Qualcomm. Are they aligned?
The business Mixed
Financial health 2/4 · Revenue -3.5% · FCF margin 21.6% · ROIC 36.1%
The stock Caution
Valuation 2/4 · P/E 19.6x · 30% below 52-week high · Timing 0/3
The analysts Divided
19 analysts · 42.42% Buy · 43.94% Hold · 13.64% Sell · Avg target $193.97 (+6.6% upside)
A cheap, cash-generative chipmaker meeting the most genuinely split analyst coverage in this group
Qualcomm pairs cash-backed profits, a 21.6% free-cash-flow margin and a 36% return on equity at just 20x earnings with revenue down about 3.5% and a weakening chart 30% below its high. restnvest scores fundamentals 2 of 4 and valuation 2 of 4. The analyst lens is the most divided here — across 19 firms, 42% Buy, 44% Hold and 14% Sell, a 93% hit ratio, and only about 7% upside to the $193.97 average target. The most recent action was a TD Cowen Buy at $200.
The case for the value
What the business fundamentals say
Mixed

Changes over time: 2 discontinued (Huawei settlement licensing, last 2021; EC fine-reversal benefit, last 2022), 2 New & Sustained, 2 Evolved, 2 New Products — a portfolio shifting toward automotive and IoT.

From the 10-K filing · 2025-11-05
Investment thesis — QCOM
Strong emphasis
Moderate
Strategic themes
5G TechnologyInternet of Things (IoT)Automotive Technology
Competitive moats
PatentsBrand Power
Market opportunity

Qualcomm's opportunity spans 5G handsets, a fast-growing automotive design pipeline, and IoT and PC processors as it diversifies beyond its smartphone-modem roots. The overhang framed in the filing is concentration and vertical-integration risk: its largest customer is building its own modems, and patent-licensing revenue faces ongoing legal and regulatory challenges.

Value creation

Qualcomm converts revenue to cash at a high rate — a 21.6% free-cash-flow margin and a 36.1% return on equity — and restnvest rates profit quality and debt safety strong, for a 2-of-4 financial scorecard. The limiter is growth: trailing revenue slipped about 3.5% year over year as handset demand softened, leaving growth quality and owner-value quality rated mixed. This is a cash-rich, high-return franchise whose reinvestment runway is the open question.

Extracted from SEC 10-K. Full thesis on restnvest →
Stage 2 · Financial performance
Financial scorecard
2 of 4 strong
Growth quality
Scaling Up
Profit quality
Cash-Backed Profits
Debt safety
Comfortable Coverage
Owner value quality
High Returns, Limited Reinvestment
Rev growth -3.5% · FCF margin 21.6% · ROIC 36.1%
Bottom line: A cheap 20x multiple with cash-backed profits, a 21.6% free-cash-flow margin, a 36% return on equity and a 2% dividend — a high-return chip and licensing franchise.
versus
The case for caution
What the stock price and analysts say
Caution
Stage 3 · Valuation
Valuation scorecard
2 of 4 sensible
✓ Price discipline
Neutral Entry — 30% below high, above 200-day trend
✗ Price tag
Caution — P/E 20x
✓ Capital discipline
Sensible
✗ Doubling potential
Caution
Stage 4 · Timing
Timing signals
0 of 3 supportive
Trend
Weakening structure
Momentum
Pressure building
Stretch
Still sliding
Trend: Both highs and lows are declining — structure is under pressure
Momentum: Short-term and long-term pressure both weakening, with the gap widening
Stretch: RSI balanced but selling pressure heating — still under pressure
Analyst conviction · Anachart · 2026-07-01
Where do analysts stand — and how much runway is left?

Y = price target. X = days remaining on call (negative = past expected hit window). Bubble size = Anachart Performance Score. Dashed vertical = the expected-hit boundary.

Buy
Hold
Sell
Upper-left · Fading signal
High target, window closing.
Upper-right · Most interesting
Bold call, plenty of runway.
Lower-left · Stale or wrong
Modest target, window closed.
Lower-right · Cautious coverage
Modest target, time left.

Chart shows 5 of 19 covering analysts. See all on Anachart →

Bottom line: Revenue is declining, the chart is weakening 30% below its high, and coverage is the most divided here — 44% Hold and 14% Sell, with vertical-integration risk from its largest customer.

The reconciliation

Qualcomm sets a cheap, cash-generative franchise against a genuinely split Street. The supportive side is concrete: restnvest scores fundamentals 2 of 4 strong, with cash-backed profits and comfortable coverage, a 21.6% free-cash-flow margin, a 36% return on equity, and a 2% dividend — all at just under 20x trailing earnings. The cautious side is just as concrete: trailing revenue is down about 3.5% year over year as handset demand softened, growth and owner-value quality are rated mixed, and the chart is weakening 30% below its high, leaving restnvest's timing lens 0 of 3 supportive. The analyst lens is the most divided in this group — across 19 firms, 42.42% Buy, 43.94% Hold and 13.64% Sell, a 93.5% hit ratio, and the latest action a TD Cowen Buy at $200. The $193.97 average target implies only about 7% upside, and the split ratings capture a real debate: bulls point to automotive and IoT diversification and a cheap multiple, while skeptics weigh a maturing smartphone market and the risk that Qualcomm's largest customer designs it out with in-house modems. A long-term investor weighs a high-return, cash-rich business at a low multiple against a declining top line and coverage that, unusually, has no clear consensus. Two data notes: revenue growth is the latest quarterly figure (-3.5% year over year), as a clean annual figure was not available on the source page; and analyst performance scores use a hit-ratio-based 0-10 proxy applied consistently across this group.

Dive deeper into the fundamentals

See Qualcomm's full 6-stage analysis on restnvest →
Sources
Fundamentals: restnvest — SEC 10-K, 2025-11-05. | Analysts: Anachart — 2026-07-01.
This is educational content only — not financial advice.