Qualcomm (QCOM) has seen a $1,000 investment grow to approximately $2,500 over the past decade, lagging behind the S&P 500’s nearly $3,200 return. The company’s struggles stem from its heavy reliance on the saturated smartphone market and fierce competition from MediaTek, alongside a missed opportunity in the burgeoning AI chip sector. Additionally, trade tensions with China and a projected decline in smartphone shipments add to its challenges.
Despite generating stable earnings and a reliable dividend, Qualcomm faces significant headwinds, including the anticipated loss of Apple as a major customer, which could slash its revenue by up to $8 billion. Analysts project a modest 2% revenue growth CAGR through fiscal 2028, although EPS growth may appear healthier due to comparisons with a prior decline and a new $20 billion buyback plan.
For investors, Qualcomm’s potential for substantial gains remains uncertain. The stock could rise 46% by 2030 if it meets optimistic estimates, making it a topic worth exploring further in the original article.
Source: fool.com