Analysts Are Backing Qualcomm: Is a Breakout Coming?

Core Viewpoint - Qualcomm Inc. is currently viewed as one of the cheapest large-cap semiconductor stocks, particularly when compared to peers like NVIDIA and AMD, but its valuation has not translated into significant stock movement until recently [1][5]. Valuation Metrics - Qualcomm's price-to-earnings (P/E) ratio stands at 15, significantly lower than NVIDIA's 55 and AMD's 115, indicating it may be undervalued relative to its peers [4]. - Despite its low P/E ratio, Qualcomm has underperformed compared to its peers in recent years, raising questions about its valuation [5]. Recent Stock Performance - Since April, Qualcomm's stock has increased nearly 30%, forming a pattern of higher highs and higher lows, which is a positive technical indicator ahead of the upcoming earnings report [2][10]. - The stock closed at approximately $154, with a price target set by JPMorgan at $190, suggesting a potential upside of around 25% [7]. Analyst Support - JPMorgan's analyst Samik Chatterjee has reiterated an Overweight rating for Qualcomm, reflecting confidence in robust cloud-related spending anticipated in the second half of 2025 [8]. - This analyst support is considered rare for Qualcomm this year, contributing to positive market sentiment, as evidenced by the stock's performance relative to the S&P 500 [9]. Upcoming Catalysts - Qualcomm's upcoming earnings report is expected to act as a catalyst, given the company's history of beating analyst expectations and the current positive sentiment in the market [10][11]. - The stock's recent upward momentum, combined with a favorable valuation and analyst upgrades, positions Qualcomm for potential continued growth in the latter half of the year [11][12].