Qualcomm: The Cheapest It Has Ever Been – Reiterate Buy

Summary:

• QUALCOMM’s double beat FQ4’24 performance, promising FQ1’25 guidance, and excellent FY2029 guidance have been met with much skepticism indeed.
• Part of the headwinds are naturally attributed to the ARM legal dispute and takeover rumors with INTC, with it triggering the stock’s discounted valuations.
• If anything, QCOM remains a semi giant with robust prospects in handsets, automotive, broadband, AR/VR, and ARM-based AI CPUs, positioning it for long-term double-digit growth.
• If anything, we believe that the ARM legal dispute may be resolved favorably, similar to the AAPL precedent, attributed to the $40B of businesses at stake.
• At the same time, readers may want to take the INTC-QCOM takeover rumors with a large pinch of salt, attributed to the potentially immense regulatory headwinds.

QCOM Is Inherently Undervalued – Offering Opportunistic Investors With The Dual Pronged Returns

We previously covered QUALCOMM (NASDAQ:QCOM) (NEOE:QCOM:CA) in August 2024, discussing its compelling investment thesis as a well-diversified semiconductor stock, attributed to its robust prospects across

Analyst’s Disclosure: I/we have a beneficial long position in the shares of QCOM, AVGO 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.

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