Qualcomm Is Cheap Enough to Hold Through 2030

Qualcomm, the chipmaker behind the Snapdragon processors found in nearly a quarter of all smartphones, is poised for significant growth through 2030, according to CEO Cristiano Amon's statement in the company’s fiscal 2026 Q4 report. The stock's current price of $173.53 is notably low, trading at just 9.6 times forward earnings estimates, indicating it may be "cheap enough to hold through 2030."

This perception stems from Qualcomm's strategic focus on data center, automotive, and Internet of Things revenue, which is projected to grow by over 60% in fiscal 2027, offsetting the decline in handset chip sales. AI agents are driving up the demand for computing power in data centers, a market Qualcomm is poised to capture with its energy-efficient AI250 chip.

Early results are encouraging, with the company's data center revenue forecasted to reach $650 million in fiscal 2027 Q1 and a $7 billion annual run rate by fiscal 2027. Amazon, a key customer, has a contract to purchase up to $60 billion in data center chips from Qualcomm over a decade. While Qualcomm's relationship with Apple is a concern, as the tech giant plans to use its own smartphone modems, management remains confident in the company's long-term growth potential, aiming for more than 5% of a $1 trillion opportunity in data centers within five to seven years.