Qualcomm And Its Real Value

Summary

  • Qualcomm is fundamentally strong, with solid ROE, ROIC, and gross margins. But recent declines in these metrics warrant caution.
  • The company is expanding into automotive and AI, positioning itself for future growth, yet faces volatile earnings and underperformance vs. the S&P 500.
  • Valuation analysis shows QCOM is slightly undervalued, but lowered growth forecasts limit upside potential to around market-average returns.
  • This article focuses on the fundamentals, the valuation, and I share my opinion on whether I'm interested in investing in QCOM.
  • This idea was discussed in more depth with members of my private investing community, Good Stocks@Bargain Prices. Learn More »
Qualcomm headquarters sign in San Diego, California, USA.

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Qualcomm (NASDAQ:QCOM) manufactures wireless chipsets, licenses technology, and provides communication services around the world. Qualcomm delivers leading-edge AI and high-performance, lower-power computing, and the company’s mission aims for next-generation digital transformation.

QCOM CFO Akash Palkhiwala's comments at the Nasdaq London

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This article was written by

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Grant Gigliotti is the founder of Beat The Market Analyzer, a leading value investing stock software and has been an active investor for 20+ years. He focuses on the value investing strategies of Warren Buffett to find good companies at bargain prices. He aims to show you how he buys good companies with strong fundamentals at large discounts from their intrinsic value.

Grant is the leader of the investing group Good Stocks@Bargain Prices where he offers subscribers: daily stock analysis, alerts for what he’s buying/selling, a regular newsletter, weekly summaries, a watch list, and chat to answer questions. Learn more.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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