QUALCOMM Faces Bearish Trends Despite Solid Fundamentals and Long-Term Growth Potential

Technical Analysis

QUALCOMM Incorporated (NASDAQ: QCOM) closed at $152.72 on March 28, 2025, experiencing a decline of 3.32% during the day, nearing its 52-week low of $147.88. The stock is trading below its 50-day and 200-day moving averages of $163.95 and $170.67, respectively, indicating a bearish trend. The RSI14 at 45 suggests the stock is neither overbought nor oversold. The MACD is negative at -3.36, which further corroborates the downward momentum. The Average True Range (ATR) stands at 3.02, signaling lower volatility in the short term. Current support is seen at $151.94, with resistance at $161.22, highlighting a narrow trading range.

Fundamental Analysis

QUALCOMM's fundamentals appear solid, with a PE ratio of 16.57, which is reasonable compared to its earnings per share (EPS of $9.27). The stock's intrinsic value is reflected in a DCF valuation of approximately $207.34, suggesting it is undervalued at its current market price. A dividend yield of 2.78% (TTM) offers some income potential for investors. Analysts have a target consensus price of $188.75, indicating a possible upside.

Short-term Stock Performance Prediction

For the next trading day (March 31, 2025), QCOM is likely to encounter some support around $151.94, with potential short-term stabilization or mild recovery. During the upcoming week, unless significant news alters the market sentiment, the stock may test its resistance at $161.22, stabilizing within its current trading range.

Long-term Investment Potential

In the long term, QCOM's engagement in high-growth areas such as 5G technology, A.I., and semiconductor devices enhances its growth prospects. However, geopolitical risks due to its reliance on Taiwan for semiconductor manufacturing and ongoing antitrust complaints against Arm Holdings may pose challenges. Strategic partnerships, as evidenced by the planned meeting with China's Xi Jinping, could bolster its international presence.

Overall Stock Evaluation

Considering the technical bearish trend and undervaluation from a fundamental perspective, QCOM is evaluated as a 'Hold' candidate for the present. Investors should monitor developments around its antitrust filings, geopolitical risks, and upcoming earnings announcement on May 7, 2025, for clearer long-term prospects. The current analyst consensus supports this view, skewing towards a conservative approach.