QUALCOMM Incorporated (QCOM): A Bull Case Theory

We came across a bullish thesis on QUALCOMM Incorporated on Uncle Stock Notes’s Substack. In this article, we will summarize the bulls’ thesis on QCOM. QUALCOMM Incorporated's share was trading at $168.09 as of November 28th. QCOM’s trailing and forward P/E were 33.55 and 13.76 respectively according to Yahoo Finance.

Qualcomm has emerged from recent challenges as a multi-dimensional tech powerhouse, driving growth across mobile phones, automotive, and IoT segments while positioning itself as a central player in the AI revolution. Its mobile division, up 7% year-on-year, benefits from an AI-driven replacement cycle, with on-device AI enabling ChatGPT, real-time translation, and image editing without reliance on the cloud. The Snapdragon 8 Gen 5 chip underpins this transformation, securing growth among Android brands even amid potential Apple competition.

Qualcomm’s automotive segment reported $984 million in revenue, a 21% increase, with its Snapdragon Digital Chassis powering cockpits, connectivity, and autonomous driving systems across leading automakers, delivering long-term “Design Win” contracts that promise multi-year revenue streams. The IoT business, rising 24% to $1.68 billion, combines industrial sensors, smart home processors, and AI PCs, the latter in partnership with Microsoft and major OEMs, challenging incumbents Intel and AMD while enabling low-power, AI-enhanced Windows devices.

Qualcomm reported Q4 revenue of $11.27 billion and non-GAAP EPS of $3.00, exceeding expectations, and projects Q1 FY26 revenue of $12.2 billion and EPS of $3.40, reflecting continued momentum. Valuation metrics indicate significant upside, with a forward P/E of 12.6x versus a fair value range of $207–$276 and DCF estimates of $195–$220 per share.

Risks include potential Apple chip independence, Chinese market competition, and economic sensitivity in automotive and IoT sectors. Nonetheless, Qualcomm is evolving from a mobile chip supplier into a cornerstone of the AI infrastructure, driving the edge computing revolution and offering a compelling long-term investment with multiple catalysts, robust free cash flow, and strategic exposure across AI-enabled devices and systems.

Previously we covered a bullish thesis on QUALCOMM Incorporated (QCOM) by Christopher Kirincic in May 2025, which highlighted the company’s leadership in 5G and Snapdragon processors, expansion into automotive, AI edge computing, and IoT, and strong licensing cash flow. The stock has appreciated 10.22% since our coverage. The thesis still stands as QCOM drives AI-enabled growth. Uncle Stock Notes shares a similar thesis but emphasizes on-device AI, AI PCs, automotive Design Wins, and updated Q4 2025 financials.

QUALCOMM Incorporated is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 76 hedge fund portfolios held QCOM at the end of the second quarter which was 82 in the previous quarter. 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.

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Disclosure: None.