Key Stats for Qualcomm Stock
- Price change for Qualcomm stock in the last 6 months: 47%
- $QCOM Stock Price as of Oct. 2: $185
- 52-Week High: $260
- $QCOM Stock Price Target: $194
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What Happened?
Qualcomm (QCOM) has agreed to a broad, multi-year patent license deal with Huawei. The deal covers AI, 5G, computing and networking technologies.
Here are the key details:
- Qualcomm will buy certain Huawei US patents. They relate to computing, AI and networking.
- It is Huawei’s first patent licensing deal with Qualcomm that covers 5G.
- Huawei says the deal will lift the total value of its patent licensing agreements to more than $6.9 billion once completed.
- Huawei’s licensing business has made positive revenue since 2021.
Huawei has spent heavily on R&D in recent years.
US trade restrictions since 2019 have limited its ability to buy advanced chips and key software. Huawei paid Qualcomm its first licensing fee in 2001.
This deal follows an August licensing deal between Huawei and HP Inc.
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What the Market Is Telling Us About Qualcomm Stock
This looks like a steady, long-term deal. The source gives no dollar value for what Qualcomm will pay or receive. So it is hard to size the impact on Qualcomm stock right now.
Still, it fits what management has been saying. On the Q3 call, Qualcomm said it is pushing into data center and AI. It also wants to grow beyond phones. Buying AI and networking patents supports that plan.
The company’s licensing arm is a steady earner. Qualcomm’s licensing revenue was $1.3 billion last quarter. Its licensing margin was 69%. Guidance for next quarter is $1.2 billion to $1.4 billion.
Qualcomm stock also faces short-term pressures. Memory prices and input costs are hurting handset demand.
Management said the handset market could fall by a low-teens percentage this year. Apple revenue is also dropping faster than planned.
Qualcomm expects its share of the next iPhone to be well below 20%.
Management is counting on growth elsewhere.
It guided fiscal Q4 revenue of $9.7 billion to $10.5 billion. Non-handset revenue is expected to grow more than 60% in fiscal 2027. Data center revenue is targeted at $5 billion in fiscal 2027.
For investors, the Huawei deal is a small positive signal. It adds to Qualcomm’s patent position in AI and networking.
But Qualcomm stock will likely move more on data center progress and handset recovery. Watch for more details on deal terms. Those would show how much this matters for Qualcomm stock.
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So what is Qualcomm stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
