S&P 500
7,532.40
-0.43%
Dow Jones
52,139.00
+0.76%
Nasdaq 100
30,037.20
-1.61%
Russell 2000
2,942.25
-0.92%
FTSE 100
10,469.40
+0.56%
Nikkei 225
69,148.30
-0.85%

Investing

Qualcomm Is One of the Cheapest AI Stocks in the Trump Bull Market. Here’s Why That Gap May Close

Photo of Joel South
By Joel South Updated Published
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Qualcomm Is One of the Cheapest AI Stocks in the Trump Bull Market. Here’s Why That Gap May Close

© Qualcomm

Qualcomm trades like a legacy modem company while quietly building the cheapest exposure to AI silicon in the entire Trump bull market, and that mispricing is the core investment thesis. Qualcomm (NASDAQ:QCOM | QCOM Price Prediction) just delivered its fourth consecutive earnings beat, confirmed a hyperscaler custom silicon program, and authorized a fresh $20 billion buyback. The market is still pricing this stock as if none of that is happening.

1. The Valuation Is Indefensible for an AI Name

Qualcomm trades at a forward P/E of 16 with a free cash flow yield of 6.52% and a PEG ratio of 0.719. NVIDIA (NASDAQ:NVDA), Broadcom (NASDAQ:AVGO) and Advanced Micro Devices (NASDAQ:AMD) all command multiples several times that.

Qualcomm threw off $12.82 billion in free cash flow in FY25 on $44.28 billion in revenue, with an ROE of 23%. The implied earnings power, against a forward EPS of $14.54, leaves a model base case target of $246.66, or 29% upside.

2. The Data Center Catalyst Is Already Confirmed

CEO Cristiano Amon stated on the Q2 call that the “leading hyperscaler custom silicon engagement is on track for initial shipments later this calendar year” and described it as a “multi-generation engagement.”

The June 24 Investor Day will detail Data Center and Physical AI roadmaps, with the Alphawave acquisition already closed. Automotive set a record $1.326 billion quarter at +38% YoY, and management expects to exit fiscal 2026 at a run rate above $6 billion in auto.

3. Capital Return at a Scale Few AI Stocks Match

Qualcomm returned $12.6 billion to shareholders in FY25 and repurchased $2.8 billion in Q2 FY26 alone (19 million shares). The $0.89 quarterly dividend yields 2% with an interest coverage of 18.6x. Insider activity shows 52 recent transactions tilted toward buying. For a retirement-focused investor, the combination of yield, buyback velocity, and forward earnings visibility is rare in semiconductors.

The Risk, Dismissed

The bear case is Chinese handset softness and memory supply pressure. CFO Akash Palkhiwala addressed this directly: “QCT handset revenues from Chinese customers will reach a bottom in the third quarter and return to sequential growth in the following quarter.” Combined Automotive and IoT already grew 20% YoY, absorbing the handset drag. The trough is in the price.

For retirement portfolios seeking AI exposure without paying 60x earnings, Qualcomm at $191.57 screens as one of the more compelling setups heading into the June 24 Investor Day, which could reprice the multiple.

DISCLOSURE:
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA(www.finra.org)/SIPC(www.sipc.org). Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov. Probability of Member receiving $1,000 is a probability of 0.026%; If you don’t make a selection in 30 days, you’ll no longer qualify for the promo. Customer must fund their account with a minimum of $50.00 to qualify. Other fees, such as exchange fees, may apply. Please view our fee disclosure to view a full listing of fees. Investing in alternative investments and/or strategies may not be suitable for all investors and involves unique risks, including the risk of loss. An investor should consider their individual circumstances and any investment information, such as a prospectus, prior to investing. Interval Funds are illiquid instruments, the ability to trade on your timeline may be restricted. Brokerage and Active investing products offered through SoFi Securities LLC, Member FINRA(www.finra.org) /SIPC(www.sipc.org). There are limitations with fractional shares to consider before investing. During market hours fractional share orders are transmitted immediately in the order received. There may be system delays from receipt of your order until execution and market conditions may adversely impact execution prices. Outside of market hours orders are received on a not held basis and will be aggregated for each security then executed in the morning trade window of the next business day at market open. Share will be delivered at an average price received for executing the securities through a single batched order. Fractional shares may not be transferred to another firm. Fractional shares will be sold when a transfer or closure request is initiated. Please consider that selling securities is a taxable event. Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire investment Before trading options please review the Characteristics and Risks of Standardized Options  Investing in an Initial Public Offering (IPO) involves substantial risk, including the risk of loss. Further, there are a variety of risk factors to consider when investing in an IPO, including but not limited to, unproven management, significant debt, and lack of operating history. For a comprehensive discussion of these risks please refer to SoFi Securities’ IPO Risk Disclosure Statement This should not be considered a recommendation to participate in IPOs and investors should carefully read the offering prospectus to determine whether an offering is consistent with their investment objectives, risk tolerance, and financial situation. New offerings generally have high demand and there are a limited number of shares available for distribution to participants. Many customers may not be allocated shares and share allocations may be significantly smaller than the shares requested in the customer’s initial offer (Indication of Interest). For more information on the allocation process please visit IPO Allocation.
Follow 24/7 Wall St. on Google
Photo of Joel South
About the Author Joel South →

Joel South covers large-cap stocks, dividend investing, and major market trends, with a focus on earnings analysis, valuation, and turning complex data into actionable insights for investors.

He brings more than 15 years of experience as an investor and financial journalist, including 12 years at The Motley Fool, where he served as an investment analyst, Bureau Chief, and later led the Fool.com investing news desk. He has also co-hosted an investing podcast and appeared across TV and radio discussing market trends.

Continue Reading

Is It Too Late to Buy Qualcomm Stock?
Trey Thoelcke |

Is It Too Late to Buy Qualcomm Stock?

Qualcomm (NASDAQ: QCOM | QCOM Price Prediction) has gained roughly 34% in the past week and more than 42% over…

Got $25,000? Broadcom or Qualcomm: The Clear Winner for Growth Investors This Year
Vandita Jadeja |

Got $25,000? Broadcom or Qualcomm: The Clear Winner for Growth Investors This Year

Broadcom (NASDAQ:AVGO | AVGO Price Prediction) and Qualcomm (NASDAQ:QCOM) just gave investors two different reads on the AI chip economy.…

While Nvidia Battles AMD, Qualcomm Quietly Signed the Biggest AI Deal in Its History. With ByteDance
Omor Ibne Ehsan |

While Nvidia Battles AMD, Qualcomm Quietly Signed the Biggest AI Deal in Its History. With ByteDance

You may want to keep hitting the buy button on Qualcomm (NASDAQ:QCOM | QCOM Price Prediction), and the last six…

Qualcomm Bears Could Be Missing a Major Rebound
Vandita Jadeja |

Qualcomm Bears Could Be Missing a Major Rebound

Qualcomm (NASDAQ:QCOM | QCOM Price Prediction) has staged one of the most dramatic semiconductor rebounds of 2026, ripping 50.62% off…

Price Prediction: Qualcomm Stock Will Trade at This Price in 2028
Vandita Jadeja |

Price Prediction: Qualcomm Stock Will Trade at This Price in 2028

Qualcomm (NASDAQ:QCOM | QCOM Price Prediction) just did something I did not expect this year. Shares rose 27.2% in a…

Qualcomm Climbs 8% as Buyback, Snap AR Partnership Power Pivot Beyond Smartphones
David Moadel |

Qualcomm Climbs 8% as Buyback, Snap AR Partnership Power Pivot Beyond Smartphones

Shares of Qualcomm (NASDAQ:QCOM | QCOM Price Prediction) gained 8% and hit $223 in midday trading on Thursday, May 7,…

1 High-Flying Artificial Intelligence Stock You Might Want to Avoid Buying Right Now
Alex Sirois |

1 High-Flying Artificial Intelligence Stock You Might Want to Avoid Buying Right Now

At $242.57, Qualcomm (NASDAQ:QCOM | QCOM Price Prediction) is a Hold. A pullback toward $185 would offer a more attractive…

Prediction: Analysts Say Qualcomm Stock Is Set For A Massive Breakout
Vandita Jadeja |

Prediction: Analysts Say Qualcomm Stock Is Set For A Massive Breakout

Qualcomm (NASDAQ:QCOM | QCOM Price Prediction) has staged a remarkable comeback, recovering 51.2% from its March low of $129.39 to…

Arm Rockets 11%, Qualcomm Rises 5%: Who’s Winning the Chip-Architecture Race?
David Moadel |

Arm Rockets 11%, Qualcomm Rises 5%: Who’s Winning the Chip-Architecture Race?

Shares of Arm (NASDAQ:ARM | ARM Price Prediction) are up 11% in midday trading on Friday, June 12, changing hands…

Top Gaining Stocks

Take-Two Interactive
TTWO • Vol: 3,428,773
Moderna
MRNA • Vol: 13,008,110
Western Digital
WDC • Vol: 15,729,000
Pool
POOL • Vol: 863,710
JPMorgan Chase
JPM • Vol: 11,019,466

Top Losing Stocks

Cboe Global Markets
CBOE • Vol: 2,703,820
Monolithic Power Systems
MPWR • Vol: 1,037,754
Coterra Energy
CTRA • Vol: 73,319,495
Intel
INTC • Vol: 130,642,994
KLA
KLAC • Vol: 14,017,447