Qualcomm: Q4 Earnings, Game-Changing AI Results

Summary:

• Qualcomm’s shares have stagnated, but AI smartphone growth is just starting and will significantly benefit Qualcomm, making shares a strong buy.
• Qualcomm’s Q4 earnings exceeded expectations, with impressive handset revenue growth and strong performance in the AI chip sector.
• Qualcomm’s valuation is attractive with a low P/E ratio and strong projected revenue growth, presenting significant upside potential.
• Despite risks from potential tariffs on Chinese imports, Qualcomm’s AI smartphone chips are unlikely to face export restrictions, supporting a bullish outlook.

Co-Authored By Noah Cox and Brock Heilig.

Investment Thesis

QUALCOMM (NASDAQ:QCOM) (NEOE:QCOM:CA) shares are roughly flat since the last time I wrote on the mobile chip company in mid-August, trailing the market’s return of 8.41%. One of the

Analyst’s Disclosure: I/we have a beneficial long position in the shares of QCOM either through stock ownership, options, or other derivatives. 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.

Noah Cox (main account author) is the managing partner of Noah’s Arc Capital Management. His views in this article are not necessarily reflective of the firms. Nothing contained in this note is intended as investment advice. It is solely for informational purposes. Invest at your own risk.

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