Qualcomm Shares Rise 1.86 With 1.11B Volume 79th in Activity As Diversification Drives Automotive and IoT Gains

Generated by AI AgentAinvest Market Brief
Wednesday, Aug 13, 2025 8:29 pm ET1min read
Aime RobotAime Summary

- Qualcomm shares rose 1.86% with $1.11B volume, ranking 79th in market activity, driven by strategic diversification beyond smartphones.

- Automotive revenue surged 21% to $984M, IoT jumped 24% to $1.7B, and the $2.4B Alphawave Semi acquisition boosts data center AI capabilities.

- Partnerships with Xiaomi and BMW, plus a $45B automotive design pipeline, highlight long-term growth in ADAS and global markets.

- Financially, $3.8B shareholder returns and a forward P/E of 13x suggest undervaluation despite rising EPS and dividends.

- A backtested trading strategy showed 6.98% CAGR but 15.46% max drawdown, underscoring market volatility risks.

On August 13, 2025,

(QCOM) traded up 1.86% with a trading volume of $1.11 billion, ranking 79th in market activity. The stock’s recent performance reflects mixed investor sentiment amid evolving strategic shifts at the semiconductor leader.

Analysts highlight Qualcomm’s ongoing diversification beyond traditional smartphone markets as a key growth driver. While handset chip revenue rose 7% to $6.3 billion in Q3, the company’s automotive segment surged 21% to $984 million, setting a quarterly record. IoT revenue also jumped 24% to $1.7 billion, underscoring progress in high-growth areas. The Snapdragon X platform is projected to power over 100 PC models by 2026, while the $2.4 billion acquisition of Alphawave Semi strengthens data center capabilities amid rising AI demand.

Strategic partnerships and product launches are positioning Qualcomm for long-term gains. A multi-year agreement with Xiaomi ensures expanded use of Snapdragon 8 Series platforms in flagship devices across China and global markets. Meanwhile, the company’s safety-certified ADAS stack will debut in BMW’s Neue Klasse vehicles, with 20 OEMs planning Autopilot solutions within 18 months. Management also emphasized a $45 billion automotive design win pipeline, with one-third linked to next-generation ADAS systems.

Financially, Qualcomm returned $3.8 billion to shareholders through dividends and buybacks in the fiscal year ending September 2025. Earnings per share are forecast to rise from $10.2 to $13.3 between fiscal 2024 and 2028, with dividend payouts projected to increase from $3.51 to $3.91 per share by 2028. Despite these fundamentals, the stock trades at a forward P/E of 13x, below its 10-year average of 15.4x, suggesting potential undervaluation.

Backtest results for a strategy buying top 500 volume stocks and holding for one day from 2022 to 2025 show a compound annual growth rate of 6.98%. However, the approach experienced a maximum drawdown of 15.46%, with a notable downturn in mid-2023 underscoring the need for risk management in volatile markets.

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