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Qualcomm (ticker: QCOM) is a major technology company that designs and sells chips for smartphones, connected cars, and smart devices.

They are best known for making the processors and modems that power most Android phones. Qualcomm also earns money by licensing its wireless technology to other companies.

Lately, Qualcomm is expanding beyond phones. They are moving into cars, connected devices, and artificial intelligence with new chips for data centers and edge computing.

Founded in 1985, Qualcomm is based in San Diego. It is one of the biggest players in the semiconductor world and a key part of the mobile and wireless industries.

The IDDA Analysis framework is used to analyze companies and determine which are right for you. There are five steps to the process:

1. Capital Analysis – Your personal risk tolerance.
2. Intentional Analysis – Your unique financial goals and timelines based on your age, health, and lifestyle.
3. Fundamental Analysis – The viability of the asset based on company performance, financial health, and market position.
4. Sentimental Analysis – The current emotions of Wall Street and other market participants.
5. Technical Analysis – Historical price action to identify key psychological levels and market patterns.

Let’s dive into the IDDA analysis to assess Qualcomm’s fundamental, sentimental, and technical outlook.

IDDA Point 1&2: Capital & Intentional 

The capital and intentional analysis need to be conducted by you.

Select your assets in alignment with your financial goals. Listen to your intuition about each asset, but remember to invest based on your own values, not just because of recommendations from others.

IDDA Point 3: Fundamental

Revenue is recovering after previous declines

Qualcomm reported revenue of 9.39 billion in Q1 2025, which was a 5 percent increase year-over-year. This was the first revenue growth after several quarters of declines in 2023 and early 2024. Handset demand is stabilizing but still below previous peaks.

Strong diversification outside smartphones

The automotive segment grew 35 percent year-over-year to 598 million. Internet of things revenue increased 18 percent to 1.4 billion. These segments are growing faster than the core smartphone business, reducing dependence on Android phone cycles.

Expanding into artificial intelligence and data centers

Qualcomm is moving into data center chips with a new partnership with Nvidia. They are also growing their AI offerings with recent acquisitions like Edge Impulse and FocusAI, showing early steps to diversify into high-growth tech sectors.

Healthy balance sheet with large cash returns

As of the last report, Qualcomm had 8.5 billion in cash and returned 2.1 billion to shareholders in Q1 2025 through dividends and buybacks. The company has low debt and stable cash flows, supporting future growth investments.

Q2 guidance was flat, raising near-term concerns

In April, Qualcomm guided for Q2 revenue between 8.9 billion and 9.7 billion, which was seen as soft by analysts. Investors are waiting for the Q2 report on July 30 to confirm if the growth rebound is sustainable.

Smartphone market still a weak point

Handset revenue grew 4 percent in Q1 but remains much lower than previous peaks. Long-term risks remain if phone demand does not recover globally, especially in China.

Valuation is reasonable but no longer cheap

Qualcomm’s price-to-earnings ratio is lower than AI peers like Nvidia but remains slightly above its five-year average. Some investors worry upside could be limited if growth in automotive and AI does not accelerate quickly.

Fundamental risk: medium

Qualcomm shows strong potential in automotive, AI, and data centers, with a healthy balance sheet. However, the core smartphone market is weak and Q2 results could shift investor sentiment. Overall, risk is medium with a balanced mix of strengths and challenges.

IDDA Point 4: Sentimental

Overall sentiment is cautiously bullish for Qualcomm. Investors are interested in the company’s moves into artificial intelligence and data centers but are also aware of weak smartphone demand and recent soft guidance.

Strengths

 Big investors like Vanguard and Norges Bank increased their holdings in Qualcomm during the first half of 2025. This shows long-term institutional confidence in the company.

 CEO Cristiano Amon is vocal about Qualcomm’s shift beyond smartphones, highlighting growth in automotive, artificial intelligence, and edge computing. His optimism helps support positive investor sentiment.

 Qualcomm’s partnership with Nvidia and recent acquisitions in the AI space create excitement around its future potential, especially as AI stocks attract market attention.

 The company continues returning cash to shareholders through buybacks and dividends which appeals to both growth and income investors.

 Some analysts, including JPMorgan, have kept a positive overweight rating, signaling continued confidence despite short-term headwinds.

Risks

 Recent soft guidance for Q2 created short-term doubts. Many investors are waiting to see if the next earnings report on July 30 will confirm a rebound or show further weakness.

 Smartphone market fears remain. Many investors associate Qualcomm with phone chips, and negative news about smartphone demand can trigger quick stock sell-offs.

 Mixed analyst opinions are creating hesitation. Some firms cut price targets after Q1 earnings, reflecting cautious sentiment in the short term.

 Ongoing trade tensions and global macroeconomic pressures are also making investors nervous. Any slowdown in China or supply chain disruption could hurt Qualcomm’s results.

 Compared to pure AI companies, Qualcomm does not have the same market excitement yet. It is sometimes seen as a value play rather than a high-growth leader which limits short-term optimism.

Sentimental risk: medium

Investor sentiment is improving as Qualcomm shifts toward high-growth sectors but it remains mixed due to weak smartphone demand and cautious earnings guidance. Risk is medium as emotions can swing quickly after the upcoming Q2 earnings report.

IDDA POINT 5 – TECHNICAL

Monthly Chart

 The Ichimoku Cloud is bearish on the monthly chart. The cloud is acting as a support level for the price.

 The current candles are above the cloud which shows some strength in the longer term.

 The conversion line is below the baseline which signals some weakness and possible hesitation for further upside.

(Click on image to enlarge)

Weekly Chart

 The weekly chart shows mostly bearish signals. The candles are below the cloud and the cloud itself is red.

 The conversion line has crossed above the baseline which forms a golden cross. This is an early bullish sign that could lead to a reversal if momentum continues.

 The relative strength index (RSI) is in the neutral zone but is trending positive. This shows that there is room for the price to climb before it hits overbought levels.

The overall technical outlook shows a mixed picture. The long-term trend has some strength with candles holding above the cloud on the monthly chart. The weekly chart remains bearish but early reversal signs are forming with a golden cross and improving RSI. The stock could face short-term resistance but may have room to recover if it can break through the weekly cloud.

The technical setup shows medium risk. Bears remain in control on the weekly timeframe but some bullish signals are building up. Investors should wait for a clear breakout above the weekly cloud before calling a full trend reversal.

QCOM stock is suitable for both long term investors and swing traders.

Buy Limit (BL) levels:

 $152.39 – High Risk

 $144.12 – Moderate Risk

 $131.55 – Low Risk

Profit Taking (PT) levels:

 $167.10 – High Risk

 $182.12 – Moderate Risk

 $200.82 – Low Risk

Here are the Invest Diva ‘Confidence Compass’ questions to ask yourself before buying at each level:

1. If I buy at this price and the price drops by another 50%, how would I feel? Would I panic, or would I buy more to dollar-cost average at lower prices? (hint: this question also reveals your CONFIDENCE in the asset you’re planning to invest in).
2. If I don’t buy at this price and the stock suddenly turns around and starts going up again, will I beat myself up for not having bought at this level?

Remember: Investing is personal, and what is right for me might not be right for you. Always do your own due diligence. You should ONLY invest based on your own risk tolerance and your timeframe for reaching your portfolio goals

Technical risk: medium to high

The long-term monthly chart shows some stability with candles above the cloud but the overall trend is still weak. The weekly chart is bearish with a red cloud and price below key levels. Even with early bullish signs like the golden cross, the stock could struggle in the short term. Technical risk is medium to high until the stock clears the weekly cloud with stronger momentum.

Summary: Final Thoughts

Qualcomm is in a transition period. The company is moving beyond smartphones with growth in automotive, artificial intelligence, and data center chips. Fundamentals look stable with solid cash flow and big shareholder returns. However, the core handset business remains weak and the next earnings report could be a turning point.

Sentiment is cautiously bullish. Big investors are holding their positions and Qualcomm’s AI partnerships are attracting attention. But recent soft guidance and fears about global demand are keeping many investors on the sidelines.

The technical picture is mixed. The long-term monthly trend shows some strength but the weekly chart remains bearish. A breakout above the weekly cloud would improve the outlook but for now, risks are still present.

Overall, Qualcomm looks like a solid long-term hold for patient investors. There is potential upside if AI and automotive growth accelerate. Short-term traders may face more volatility until earnings confirm the next direction.

Overall risk: medium

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