Qualcomm Earnings Preview: A Lot Of Growth Potential Not Baked In Yet (Rating Upgrade)

Upgrade Qualcomm (QCOM) to a buy: data center pivot and Automotive growth target $40B non-handset revenue by FY29.

Summary - I am upgrading Qualcomm (QCOM) to a buy, citing its data center pivot and accelerating automotive segment as key growth drivers. - QCOM targets doubling non-handset revenue to $40B by FY29, with data center and Automotive momentum offsetting Apple modem business loss. - Intrinsic value is estimated at $220 per share, making QCOM attractively valued at a 23% discount after a recent 31% share price decline.

- Risks remain if hyperscaler support falters, but current risk/reward is favorable given recent negative sentiment and ambitious diversification. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in QCOM over the next 72 hours. I wrote this article myself, and it expresses my own opinions.

I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.