Qualcomm Stock Has an AI Opportunity Most Nvidia Investors May Be Overlooking

Quick Read

  • QCOM trades at a forward P/E of 18 while two hyperscaler custom silicon deals are set to generate revenue as early as the December quarter.

  • Broadcom’s AI semiconductor revenue hit $17 billion, up 221%, representing the exact market QCOM is now entering, yet it trades at a steep discount to both NVDA and AVGO.

  • Just released. Our analysts combed the entire stock market and named the ten best stocks to buy right now, and Qualcomm didn’t make the cut. Enter your email to see the names that beat QCOM. The report is free. Enter your email and see if any of your stocks made the cut.

Our 24/7 Wall St. price target for Qualcomm (NASDAQ:QCOM) is $218.57 over the next 12 months. That is 21% above the current $180.61. Our model rates the stock a buy, and our confidence is high.

Qualcomm sign
Qualcomm

24/7 Wall St. Price Target Summary

Most AI investors stay focused on NVIDIA (NASDAQ:NVDA). Meanwhile, Qualcomm is quietly building a data center business that includes two hyperscaler custom silicon engagements.

Both should start producing revenue in the December quarter. At a forward P/E of 18, the market is valuing Qualcomm as a handset company.

Handset Weakness Is Hiding a 61% Automotive Surge

Over the past week, Qualcomm rose 4.94%. It is down 8.43% over the past month and up 7.26% year to date. Shares sit 29.9% below the 52-week high of $257.56. In fiscal Q3, revenue came in at $9.95 billion, ahead of the $9.67 billion estimate. Non-GAAP EPS of $2.21 missed the $2.22 estimate, which ended a six-quarter beat run.

Handset revenue fell 20%. Automotive revenue rose 61% to $1.59 billion. In October, Qualcomm won a trial verdict and declared its quarterly dividend. Reuters also reported performance-focused job cuts worldwide.

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24/7 Wall St has helped investors make money for over two decades, and our top analysts just finished ranking the definitive Top 10 Stocks To Buy Now. Not the ten biggest companies. Not the ten everyone is arguing about. The ten best stocks to buy right now.

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QCOM price target
QCOM Price Target — 24/7 Wall St.

Why Bulls See $238 Ahead

Management is aiming $40 billion in non-handset revenue by fiscal 2029, including more than $15 billion from the data center. Non-handset growth should rise from 24% in fiscal 2026 to more than 60% in fiscal 2027. Wafer production for the hyperscaler chips has already begun.

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