Qualcomm Stock Climbs Beyond $150 as Q1 Revenue Hits $11.7 B and Automotive Sales Soar
QCOM hits $155 after reporting $11.7 billion in revenue and 61% automotive sales increase – Is the chipmaker’s tariff-proof model set to fuel 15 percent EPS gains in Q2 | That's TradingNEWS
Qualcomm’s First-Quarter Triumph Reinforces Long-Term Thesis on NASDAQ:QCOM
Surging Automotive and IoT Sales Offset Handset Cycles
Qualcomm’s fiscal Q1 revenues rocketed to $11.7 billion, up 25 percent from a year ago, powered by stellar growth outside its traditional handset business. Automotive chip sales leapt 61 percent year-over-year to $961 million, marking a sixth consecutive record quarter, while IoT revenues climbed 36 percent to $1.55 billion despite post-pandemic inventory headwinds. At the same time, handset-chipset revenues surged from $6.10 billion to $7.57 billion, buoyed by the Samsung Galaxy S25 launch and a 100 percent design-win for Snapdragon 8 Gen 3. Qualcomm’s ability to deliver 30 percent operating margins across these segments underscores its cost-efficient, fabless model and diversified portfolio.
Trade-War Resilience via Tariff Carve-Outs
While the US-China trade war rattled many chip names, Qualcomm sidestepped most fallout thanks to its Taiwanese-origin chip classification. China’s removal of the 125 percent tariff on US semiconductors preserved Qualcomm’s 46 percent China-derived revenues, ensuring continued pricing power among Huawei, Xiaomi, OPPO, and Vivo. Its carve-outs for automotive and IoT applications further insulate it from future escalation. This structural advantage positions NASDAQ:QCOM to capture market share even as competitors face export bans on high-performance GPUs.
Blackwell-Class On-Device AI Boosts Edge Computing
Qualcomm’s leadership in on-device AI and edge inference—evident in the Snapdragon X AI PC initiative and deep partnerships with emerging AI labs—cements its role in the next wave of portable intelligence. The rapid deployment of DeepSeek models on Snapdragon devices transforms smartphones into true AI endpoints, further enhancing product stickiness. With broad adoption expected across 2 million Snapdragon PCs in 2025 and initial wins in Windows Copilot+ laptops, Qualcomm is strategically positioned at the nexus of mobile, PC, and automotive AI.
Investor Preview for Q2 Earnings on April 30
Analyst consensus calls for Q2 non-GAAP EPS of $2.81 (up 15.3 percent YoY) on revenues of $10.65 billion (up 13.5 percent). Management’s own guidance ranges from $2.70–2.90 EPS and $10.2–11 billion revenues, reflecting confidence in sustained handset growth, a 50 percent surge in automotive chip revenues, and mid-teens growth in IoT. Handset chipset volumes should rise roughly 10 percent YoY on Galaxy S25 and early Galaxy Fold shipments, while automotive bookings—anchored by a $45 billion design-win pipeline—should deliver further upside. With gross margins north of 70 percent and QCT operating margins near 30 percent, NASDAQ:QCOM appears set to comfortably beat consensus once again.
Insider Flows Signify Management Conviction
Recent filings on Qualcomm’s insider-transactions page show executives purchasing shares during the post-February pullback. Their insider buys—coupled with a $1.8 billion Q1 share-repurchase on dips below $150—signal strong leadership belief in the company’s trajectory. With a $14.3 billion net cash position and free cash flow exceeding $12 billion annually, Qualcomm is uniquely positioned to accelerate buybacks and reward shareholders even if market volatility persists.
Valuation Discount Offers Asymmetric Upside
Trading at 12.6 times 2026 EPS estimates—37% below the semiconductor sector median—NASDAQ:QCOM sits at a compelling discount versus peers. Its forward EV/Sales of 3.8 times and price-to-book of 5.6 times, though above sector medians, reflect a business with expanding auto and IoT legs. Analysts forecast an 8 percent revenue CAGR and 13 percent EPS CAGR through FY2026, yet Qualcomm’s stock implies sub-10 percent growth. If QCOM’s multiples converge toward sector norms, a re-rating of 50–60 percent toward $225–$240 per share is well within reach.
Technical Landscape and Real-Time Monitoring
On the daily chart, NASDAQ:QCOM has stabilized above its 50-day moving average at $148, forming a bullish higher-low pattern. Volume-weighted support sits at $145, with resistance near $160 built over the last month’s consolidation. Traders tracking live movements can follow the real-time chart for entry points above $155 or defensive positions below $145.
Is Qualcomm NASDAQ:QCOM a Buy, Hold, or Sell
In light of record Q1 results, tariff-shielded China exposure, accelerating non-handset growth, and a steep valuation discount, NASDAQ:QCOM remains a Buy. The firm’s share repurchase activity, insider purchases, and management’s bullish Q2 guidance further underpin this stance. Even under conservative S-curve adoption of automotive and IoT segments, the risk-reward profile favors accumulation ahead of Q2 earnings.
