QCOM automotive revenue surged 61% to $1.588 billion, while handset sales fell 20%, signaling a shift in market focus.
Qualcomm’s fiscal Q3 revenue reached $9.947 billion, beating consensus by 2.84%, though non-GAAP EPS of $2.21 missed expectations. The company’s automotive segment grew 61% year over year to $1.588 billion, offsetting a 20% decline in handset revenue.
Shares have underperformed, down 2.46% over the past week and 5.06% year to date, trading at $160.61—well below the 52-week high of $258.96. Analysts argue the market undervalues QCOM’s diversification, with CEO Cristiano Amon targeting $40 billion in non-handset revenue by 2029.
Despite a forward P/E of 16 and EV/EBITDA of 13, Qualcomm trades at a discount to peers like AVGO and MRVL, which carry AI premiums. A 24/7 Wall St. price target of $226.05 implies 41.14% upside.