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Qualcomm is fighting against the background of the upcoming loss of main exposure to the client and heavy China.
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The emerging product lines of the company give investors a good reason to take advantage of their low assessment.
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10 shares we like better than Qualcomm ›
In recent years, investors have largely neglected QUALCOMM (Nasdaq: Qcom) Stock. The leader in smartphone chipsets is confronted with decreasing revenue after the 5G upgrade cycle continued its course, and the search for AI-activated phones so far does not encourage a comparable growth cycle.
Plus this, Apple is about to miss Qualcomm as a chipset supplier in 2027, and China’s heavy exposition has weighed shares.
However, despite these challenges, investors may ignore a convincing reason to buy this value. That is why.
In short, the reason for buying Qualcomm is its emerging business lines.
In fact, struggles in the smartphone chipset business can continue. However, Qualcomm has long since expected a day when smartphones will become less critical. It has expanded into new business lines, including IoT, Automotive and recently, PC Business. He also plans to design personalized processors that will integrate with NvidiaAh chips.
These moves show early signs of success. Although revenue growth was 17% compared to the year in the first half of the fiscal 2025 (ended March 30), IoT revenue increased by 31% during this period, and car revenue increased by 60%. This is a far over 12% increase in sales of headphones for headsets that still lead to the bigger part of the company’s revenue.
Moreover, Qualcomm’s costs and costs increased at levels approximately approaching revenue growth. However, its $ 6 billion dollars in the first two quarters of the fiscal 2025 increased by 18%, indicating that the company’s chip companies are on a cycle. Although Qualcomm does not account for his computer number, he expects to generate $ 4 billion annual revenue from this business from the fiscal 2029.
Finally, despite the two -digit profit growth, Qualcomm’s shares are sold in P/E ratio of 16. This shows that investors largely ignore the growth potential of this chip giant. However, with the rapid growth of Qualcomm’s larger business lines, investors may want to take advantage of the low ratio of P/E ratio, more investors can notice.
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