I hold only few great stocks, with great result ahead, so why I'm planning to have qualcomm as one of my 7 stocks for 2025/2026
Qualcomm is a quality tech/semiconductor company with decent existing business and some interesting growth avenues. It is a mixture of stability + moderate growth in tech, rather than a high-risk/high-reward speculative play.
Strong core business & cash flows
Qualcomm designs chips and licences technology like for wireless, 5G, mobile devices which gives it a strong foundation.
Profitability looks decent: e.g., return on assets ~ 25%.
It has a dividend (though modest) and share-buybacks in play.
Growth levers beyond its “old” business
It’s not just smartphones; Qualcomm is pushing into automotive/IoT, data centre chips, and AI/edge computing. For example: “road-map to reach $22 billion in combined auto/IoT revenues by 2029”.
Analysts see it as positioned for AI-capable smartphones and other growth areas.
Valuation looks reasonable
As of recent data, the P/E and multiples look more moderate compared to some high-flying tech stocks. For example, one estimate puts P/E around 16x.
Analyst consensus: many say “Buy” with target prices a bit above current levels. For instance, one source lists an average target ~$183 vs. current ~$170-ish.
⚠️ What to watch / risks
Mixed fundamentals & analyst sentiment
While cash flow and profitability are solid, some metrics are weak: e.g., inventory days, global supply chain risks, tariff risks.
The market seems cautious and hasn’t fully rewarded the new growth plans yet.
Big competition & execution challenge
Qualcomm is entering in markets dominated by other big players (e.g., data centre, Ai chips ). It needs to execute well, but huge potential as for years being looking for Nvidia alternatives.
If growth areas (automotive, data centre, AI chips) don’t scale as expected, the growth story could disappoint.
Macro / external risks
Semiconductor industry is cyclical; subject to supply chain issues, tariffs, geopolitical risks. For example, U.S.-China tensions have been cited as a headwind.
The “old” mobile business might face saturation or margin pressure.
Upside may be moderate from here
While there is upside, many analysts’ “average target” suggests perhaps 10 to-40% in the next year from current price.
That means this might be more of a moderate-growth/hold rather than explosive growth stock—unless the new growth areas accelerate.
If I were to summarise: Qualcomm is a quality tech/semiconductor company with decent existing business and some interesting growth avenues. It might appeal if you’re looking for a mixture of stability + moderate growth in tech, rather than a high-risk/high-reward speculative play.... Show More
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