Qualcomm's Automotive Growth Supports The Buy Case

Qualcomm remains a buy, trading at 12.9x forward GAAP earnings, well below sector and historical averages, despite cyclical handset weakness. QCT's pivot to automotive and IoT is accelerating, with combined revenues up 61% and 9% year-over-year, supporting the $40B non-handset revenue target by FY2029. The Handset segment faces a 20% revenue drop due to memory supply constraints, but margins remain resilient, and cash returns to shareholders are robust. Risks include customer concentration, Apple’s in-sourcing, China exposure, and Taiwan supply chain, but valuation offers downside support and upside on recovery.

Qualcomm’s ( QCOM ) stock trades near the low end of its industry range, about 12.9x forward GAAP earnings, or about 15.1x forward non-GAAP earnings, hovering around $155.68. That puts it well below Qualcomm’s own five -year average on a