Qualcomm Stock Continues to Grow Steadily: Is it a Must Buy?

Company Overview - Qualcomm Incorporated (QCOM) has experienced significant valuation growth over the past year, reaching an all-time high. The company, established in 1985 and headquartered in San Diego, CA, specializes in manufacturing semiconductors, software, and services related to wireless technology [1] Industry Position - Qualcomm holds a Zacks Rank 2 (Buy) and is part of the Zacks Wireless Equipment industry. Its peers, Ericsson (ERIC) and Motorola Solutions, Inc. (MSI), currently have a Zacks Rank 3 (Hold). Over the past month, QCOM's stock has risen by 11.4%, outperforming ERIC's 8.6% and MSI's 0.4% growth [2] Growth Outlook - The company has a positive long-term growth outlook in artificial intelligence (AI), Internet of Things (IoT), and 5G technologies. Recent partnerships, including one with Aramco and Saudi Arabia's RDIA for the Design in Saudi Arabia (DISA) program, aim to assist startups in utilizing AI and IoT for industrial applications. Additionally, a collaboration with MapMyIndia to develop localized offerings for smart, connected vehicles is also noteworthy [3] Financial Performance - Qualcomm has shown steady growth over the last five years, with a share price increase of 77.6%. In the fiscal fourth quarter, the company reported earnings of $2.69 per share, exceeding the Zacks Consensus Estimate of$2.56. Revenues for the quarter ended September 2024 were $10.24 billion, surpassing the consensus estimate by 3.49$2.93 per share, reflecting a 6.55% increase year-over-year, with revenue forecasts of $10.89 billion indicating a 9.61$170, with a very positive outlook that may drive further growth. The Wireless Equipment industry ranks in the top 24% of all industries within the Zacks universe, which is an important factor for investment decisions [6]