Qualcomm (QCOM): A Strong Bull Case Backed by AI, Automotive, and IoT Growth

QUALCOMM Incorporated (QCOM) is increasingly being viewed as a diversified technology leader rather than just a mobile chipmaker, as it expands aggressively across artificial intelligence, automotive technology, and the Internet of Things (IoT). As of November 28, QCOM was trading at $168.09, with a trailing P/E of 33.55 and a forward P/E of 13.76, according to Yahoo Finance.

After navigating recent industry challenges, Qualcomm has emerged stronger, driven by growth across multiple business segments. Its mobile division recorded a 7% year-on-year increase, supported by an AI-driven smartphone replacement cycle. On-device AI capabilities now allow features such as ChatGPT integration, real-time translation, and advanced image editing without relying on cloud computing. The Snapdragon 8 Gen 5 chip plays a central role in this shift, strengthening Qualcomm’s position among Android manufacturers despite potential competition from Apple’s in-house chips.

The company’s automotive business has also gained momentum, generating $984 million in revenue, a 21% increase year-on-year. Qualcomm’s Snapdragon Digital Chassis is being adopted by major global automakers to power digital cockpits, vehicle connectivity, and autonomous driving systems. These long-term “Design Win” agreements are expected to provide stable, multi-year revenue streams.

Meanwhile, Qualcomm’s IoT segment grew 24% to $1.68 billion, driven by demand for industrial sensors, smart home solutions, and AI-powered PCs. Through partnerships with Microsoft and leading OEMs, Qualcomm is challenging established players such as Intel and AMD by enabling energy-efficient, AI-enabled Windows devices.

Financially, Qualcomm exceeded expectations in the fourth quarter, reporting revenue of $11.27 billion and non-GAAP earnings per share of $3.00. Looking ahead, the company forecasts Q1 FY26 revenue of $12.2 billion and EPS of $3.40, signaling continued growth momentum. Valuation metrics suggest notable upside, with a forward P/E of 12.6x and fair value estimates ranging between $207 and $276 per share, while discounted cash flow models point to a valuation between $195 and $220.

Despite risks such as Apple’s move toward chip independence, competitive pressure in China, and economic sensitivity in automotive and IoT markets, Qualcomm continues to evolve into a key player in AI infrastructure and edge computing. With strong free cash flow, multiple growth catalysts, and expanding exposure to AI-enabled devices, Qualcomm presents a compelling long-term investment case.