QUALCOMM (QCOM) Stock Forecast & Price Target

Qualcomm's strong financial outlook is supported by substantial expected revenue growth in its key segments, with handset revenues projected to increase by 10% year-over-year, indicative of robust demand for its technology. The company's commitment to diversification is reflected in its anticipated IoT revenue growth of approximately 15% year-over-year, fueled by increased adoption of AI-enabled applications across various industries. Furthermore, automotive revenues are forecasted to grow significantly, with an impressive 50% year-over-year increase, demonstrating Qualcomm's successful integration of its Snapdragon Digital Chassis solutions into next-generation vehicles.

Qualcomm's outlook for fiscal year 2025 indicates stagnation in QTL revenues due to an unresolved licensing agreement with Huawei and a forecast of flat to low-single-digit growth in handset units, which raises concerns about future revenue streams. The company's revised earnings per share projection for calendar year 2025 has also been downgraded to $11.30, slightly below prior estimates and consensus, signaling potential earnings challenges. Additionally, increased economic uncertainty and regulatory pressures may negatively impact vendor financial health, potentially leading to risks associated with delinquencies and charge-offs that could further strain Qualcomm's financial performance.