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Qualcomm (QCOM) Delivers Solid Results-But Apple Headwinds Still Loom

By Ghazal Ahmed | August 05, 2025, 2:20 PM

QUALCOMM Incorporated (NASDAQ:QCOM) is one of the AI Stocks Analysts Are Watching CloselyOn July 31, Cantor Fitzgerald analyst C.J. Muse reiterated a “Neutral” rating on the stock with a $150.00 price target.

The rating affirmation follows Qualcomm’s quarterly report where the chipmaker announced revenues of $10.4 billion and earnings per share of $2.77. These figures slightly exceeded consensus estimates of $10.3 billion and $2.71.

Looking ahead, guidance for the September quarter was also raised to $10.7 billion in revenue and $2.85 in earnings per share, surpassing analyst expectations.

“QCOM reported a modest beat ($10.4B/$2.77 vs. cons $10.3B/$2.71) and raise ($10.7B/$2.85 vs cons $10.6B/$2.83) despite fears of pull-ins setting up for a Sept Q miss. In fact, mgmt. noted no signs of tariff-related pull-ins currently (a bit surprising given recent commentary from QRVO, MTK, etc.), with handset upside in the Sept Q driven exclusively from the strength of a new product launch.”
Qualcomm (QCOM) Delivers Solid Results—But Apple Headwinds Still Loom
An aerial view of a bustling semiconductor production zone showcasing the company’s integrated circuits.

The firm discussed how Qualcomm boasts strong positioning in XR/AR markets. Meta’s smart glasses have exceeded expectations while new Snapdragon-powered devices are expected from key partner Xiaomi. The firm is also optimistic that the company is on track to hit the FY26 revenue target of $4B.

“Automotive is also likely ahead of schedule with revenues expected to be ~$1.0B in the September Q, leaving the company well on track to hit the FY26 revenue target of $4B. “

There was some bad news, too.

“As for the bad news, on the call the company guided for typical seasonality into the December Q ex- AAPL – which we believe implies a bit downside to consensus numbers coming in. Also, EBT margins in QCT of 28% in the Sept Q are a clear disappointment and are only likely to get worse as AAPL is fully removed from the model – we believe a primary driver of the after-hours weakness.”

The firm sees better opportunities in other semiconductor stocks right now.

QUALCOMM Incorporated (NASDAQ:QCOM) develops wireless technologies, supplies chips for mobile, automotive, and IoT, licenses patents, and invests in emerging tech.

While we acknowledge the potential of QCOM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Must-Watch AI Stocks on Wall Street  and 10 AI Stocks Making Waves on Wall Street

Disclosure: None.

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