Should QCOM Stock Be in Your Portfolio Post Solid Q1 Earnings?

Core Insights - Qualcomm Incorporated (QCOM) reported strong first-quarter fiscal 2025 results, with adjusted earnings and revenues exceeding Zacks Consensus Estimates, driven by healthy demand in Android handsets and automotive sectors [1] - The company is transitioning from a wireless communications firm to a connected processor company for the intelligent edge, supported by solid 5G traction and diversified revenue streams [2] - Qualcomm is leveraging AI capabilities to meet increasing demands for essential products and services in a cloud economy [3] Financial Performance - Automotive revenues surged 61% to a record high of $961 million, while handset revenues increased 13$7.57 billion, driven by the Snapdragon Digital Chassis platform and premium Android handsets [4] - Earnings estimates for fiscal 2025 have risen 1.3% to $11.36, and for fiscal 2026, estimates increased by 2.4$12.61, indicating bullish sentiment [11] Product Development - Qualcomm is expanding into AI capabilities with the launch of the Snapdragon X chip for mid-range AI desktops and laptops, aiming to diversify revenue beyond the smartphone industry [5] - The Snapdragon X SoC features an 8-core Oryon central processor and a neural processing unit (NPU) capable of 45 TOPS, designed to support AI-first applications [6] Market Position - Qualcomm shares have gained 9.7% over the past year, lagging behind industry growth of 28.3% [9] - The company is on track to become the largest smartphone radio frequency front-end supplier by revenue in the near future [4] Investor Sentiment - Qualcomm has a trailing four-quarter average earnings surprise of 7.8% and a VGM Score of A, currently holding a Zacks Rank 2 (Buy), indicating positive investor perception [15][14]