Qualcomm shares have cooled to trade about 18% below their 52-week high after a 59% rally over the prior three months, forcing investors to weigh the chipmaker's push into AI-powered cars and data centers against near-term handset weakness. The stock carries a price-to-earnings ratio of 23.8, roughly in line with the S&P 500's 24.1, but a richer price-to-sales multiple of 5.3 versus the market's 3.2, reflecting expectations that diversification will make its revenue more valuable. The automotive segment posted a record quarter with revenue of $1.3 billion, up 38% year-over-year, while management said Chinese handset revenue should reach a bottom in the third quarter and announced a custom-silicon ramp with a leading hyperscaler set to begin shipments late this year. Qualcomm generated about $14.3 billion in operating cash flow over the last year, converting 32.1% of revenue, and returned $3.7 billion to shareholders via buybacks and dividends in the most recent quarter, with debt at just 6.5% of market value and cash at 17.2% of assets. During major downturns, the stock fell 45% in the 2022 inflation shock versus the S&P 500's 25% decline, but its 36% drop in the 2020 pandemic crash was in line with the market's 34% fall, and options markets are pricing in implied volatility in the 93rd percentile of its annual range.
Qualcomm IncorporatedAutomotive segment record revenue up 38% YoY and custom-silicon ramp with hyperscaler starting late this year indicate strong demand in new areas.
Texas Instruments Incorporated
