Qualcomm: The Most Underappreciated EPS Upside Story In Semis
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The Alpha Analyst2.53K FollowersFollow5ShareSavePlay(8min)CommentsSummaryQualcomm is positioned for a rally, driven by AI-driven handset ASP uplift and accelerating automotive revenues.Premium Android demand and automotive ADAS expansion provide multi-year EPS growth levers, reducing cyclicality and supporting re-rating potential.Conservative modeling shows an immediate ~8.5% EPS uplift for FY2026, with further upside from AI PCs and cloud AI opportunities.QCOM offers a 2% yield with a 22-year dividend growth streak and a conservative payout ratio, strengthening its risk-reward profile. phongphan5922/iStock via Getty Images I view Qualcomm (QCOM) as a quality stock that is looking for its next leg of the rally. The current optionality around AI-driven handset ASP uplift and credible automotive revenue conversion appear to be twoThis article was written byThe Alpha Analyst2.53K FollowersFollowI am a stock analyst with over 20 years of experience in quantitative research, financial modeling, and risk management. My focus is on equity valuation, market trends, and portfolio optimization to uncover high-growth investment opportunities. As a former Vice President at Barclays, I led teams in model validation, stress testing, and regulatory finance, developing a deep expertise in both fundamental and technical analysis. Alongside my research partner (also my wife), I co-author investment research, combining our complementary strengths to deliver high-quality, data-driven insights. Our approach blends rigorous risk management with a long-term perspective on value creation. We have a particular interest in macroeconomic trends, corporate earnings, and financial statement analysis, aiming to provide actionable ideas for investors seeking to outperform the market.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Quick InsightsWhat are the main drivers of QCOM's expected EPS breakout above $12?Premium handset ASP expansion and accelerating automotive ADAS revenues are the primary contributors, with conservative modeling indicating an ~8.5% EPS uplift for FY2026.Recommended For You