The withdrawal of a major UK consumer lawsuit has eased a legal overhang for QUALCOMM (QCOM), even as company warnings on global memory shortages keep attention on near term handset and data center risks.

At a share price of US$140.70, QUALCOMM has seen a 1 day share price return of 1.61%, a 30 day share price return decline of 11.74% and a year to date share price return decline of 18.66%. The 3 year total shareholder return of 21.76% and 5 year total shareholder return of 14.28% indicate that longer term holders have experienced more mixed results, as recent concerns about memory shortages, cautious guidance and earlier sentiment shifts have cooled momentum despite record quarterly revenue, buybacks and the removal of a major UK legal risk.

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With QCOM trading below some analyst value estimates after a sharp year to date pullback, yet still facing memory driven handset uncertainty, are investors looking at an underappreciated AI and licensing story, or is the market already discounting future growth?

Most Popular Narrative: 53.1% Undervalued

QUALCOMM's most followed valuation narrative, according to yiannisz, sets a fair value of $300 per share, well above the last close of $140.70, and builds that view around record recent results and an AI centric product mix.

Qualcomm (QCOM) delivered a strong start to FY2025, posting record revenues of $11.7 billion (+18% YoY) and EPS growth of 24% YoY to $3.41. The company’s handset, automotive (+61% YoY), and IoT (+36% YoY) segments drove top-line expansion, while $2.7 billion was returned to shareholders through buybacks and dividends.

Curious how that kind of quarterly performance underpins a fair value more than double today's price? The narrative leans heavily on accelerating EPS, segment mix shifts and margin assumptions that extend well beyond headline revenue growth. Want to see which parts of automotive, IoT and on device AI carry the most weight in that $300 figure compared to QUALCOMM's current $140.70 share price?

Result: Fair Value of $300 (UNDERVALUED)

However, those upbeat assumptions could be tested if handset demand weakens further because of memory constraints or if large AI and automotive design wins take longer to convert into revenue.

Next Steps

Given the mix of caution and optimism running through this story, it makes sense to look at the underlying data yourself and move quickly to shape your own view, starting with 4 key rewards and 1 important warning sign.

Looking for more investment ideas?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.