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Key Points
Qualcomm shares are trading just below recent highs ahead of Wednesday’s earnings.
Analyst sentiment is mixed, but JPMorgan boosted its price target to $200.
Investors can buy into the momentum or wait for a breakout confirmation before getting involved.
Semiconductor giant Qualcomm Inc. (NASDAQ: QCOM) is set to report earnings on Wednesday, and it couldn’t come at a more pivotal moment. The stock has been in a quiet but steady uptrend since April, gaining nearly 30% while flying under the radar compared to more explosive names like NVIDIA Corp (NASDAQ: NVDA) or Advanced Micro Devices Inc (NASDAQ: AMD).
Trading right around the $160 mark, Qualcomm’s chart over the past couple of months shows a consistent run of higher lows and higher highs. It’s not flashy, but it’s consistent.
That pattern alone will have momentum traders watching closely for a move above July’s high of $164, a level that, if cleared post-earnings, could confirm the uptrend is intact and potentially extendable.
There’s reason to believe it might happen. Qualcomm has quietly built a reputation for delivering solid results, and the company has topped analyst expectations on the headline numbers for seven straight quarters.
That kind of consistency builds confidence, especially when the broader market is still figuring out how to price semiconductor exposure beyond AI.
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Why This Earnings Report Matters More Than Ever
This Wednesday’s report matters all the more because Qualcomm is at an inflection point. On one hand, it continues to trade at a significant discount to its industry peers. Its price-to-earnings (P/E) ratio remains below 17, while NVIDIA and AMD are well above 55 and 120, respectively. That discount is both a value investor’s dream and a point of frustration for long-time shareholders who’ve watched the stock lag its more glamorous peers for years.
But that lag might be changing. Early Monday, JPMorgan reiterated its Overweight rating on Qualcomm and raised its price target to $200, pointing to a clear 25% upside from current levels. The team there feels Qualcomm is well-positioned to benefit from the second-half recovery in cloud infrastructure spending and is bullish on the company’s growing presence in the automotive and IoT sectors.
That’s a view not shared by all. UBS reiterated a Neutral rating on the stock last week, highlighting how the broader macroeconomic picture remains challenging for some of Qualcomm’s key end markets. This mix of opinions captures the moment perfectly. Wall Street is still trying to determine if this is the same old Qualcomm, capable but stagnant, or if the stock is gearing up for a genuine breakout towards all-time highs.
Different Ways to Play Upcoming Earnings
There are really two ways to approach Qualcomm’s upcoming report. Option one is to buy into the pre-earnings optimism and get behind JPMorgan’s $200 price target. With the stock’s multi-month uptrend intact, bullish momentum building, and fresh analyst support this week, the setup looks strong.
For those who believe in the consistency of Qualcomm’s earnings beats and like the idea of owning a high-quality chip stock at a bargain valuation, there’s a solid argument to get in now and ride the potential breakout through earnings.
Option two is to wait for confirmation, and from this point of view, July’s high around the $164 mark is the key level to watch. If earnings beat expectations again and the stock rallies through that resistance, it would confirm the bullish pattern and likely invite another leg higher.
If you’ve been burned by Qualcomm before, or have just a little less appetite for risk with comparable laggards, then this might be the move for you.
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Crunch Time for Qualcomm
Qualcomm has long had strong fundamentals, but has undoubtedly been an often frustrating stock to own. However, with consistent earnings beats, multiple growth drivers appearing on the horizon, and fresh price target upgrades, the narrative might finally be shifting. This week’s earnings report could be the moment that confirms it.
Regardless of how you choose to play it ahead of Wednesday’s report, this is a name to keep at the top of your watchlist as we head into the back half of 2025.
Written by Sam Quirke
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