Qualcomm Bears Could Be Missing a Major Rebound

"Qualcomm trades at $200.08. Our 24/7 Wall St. price target is $269.21 over the next 12 months, implying 34.55% upside. Recommendation: Buy with 90% confidence."

"The Q2 FY26 report on April 29, 2026 delivered the fourth consecutive beat: revenue of $10.599 billion and non-GAAP EPS of $2.65. Handsets fell 13% on memory supply constraints, but Automotive hit a record $1.326 billion (up 38%) and IoT rose 9%. CEO Cristiano Amon confirmed the "leading hyperscaler custom silicon engagement is on track for initial shipments later this calendar year.""

"The bull case targets $279.21, a 39.55% return. Diversification is working: combined Automotive and IoT revenue reached $3.052 billion last quarter, and non-Apple QCT revenues grew 18% in FY2025. The June 24, 2026 Investor Day on Data Center and Physical AI is a discrete catalyst. Alphawave Semi acquisition closed in Q1."

"Capital return is aggressive. Qualcomm authorized a $20 billion buyback and repurchased $2.8 billion in Q2 alone. New Snapdragon 6 Gen 5 and 4 Gen 5 platforms target on-device AI in commercial smartphones later in 2026. At $14.54 forward EPS and a 20x multiple, fair value approaches $290."

Qualcomm rebounded sharply in 2026, rising about 50.62% from a March trough near $129.39 to around $200.08, while remaining below its 52-week high. The latest quarterly results included a fourth consecutive beat, with revenue of $10.599 billion and non-GAAP EPS of $2.65. Handsets declined due to memory supply constraints, while Automotive reached a record $1.326 billion and IoT increased 9%. Management indicated progress on hyperscaler custom silicon shipments. Bull expectations include a breakout above $279.21, supported by diversification, a June 24 investor day catalyst, an Alphawave Semi acquisition, and aggressive capital returns through a $20 billion buyback. Risks include a bear target near $220.09 and ongoing market skepticism.

Read at 24/7 Wall St.