Should I buy Qualcomm stock in 2025? South African Investor’s Guide

What is Qualcomm?

How much is the Qualcomm stock?

The price of Qualcomm stock is rising this week. As of now, QCOM is trading at $148.34, showing a 0.50% gain over the past 24 hours and up 0.99% for the week. Qualcomm’s market capitalization stands at $162.88 billion, with an average 3-month trading volume of 8.93 million shares. The stock’s price/earnings (P/E) ratio is 15.12, it offers a 2.40% dividend yield, and its beta is 1.29, reflecting moderate volatility. For South African investors, Qualcomm continues to present an interesting opportunity, balancing resilient dividends with dynamic growth potential in the tech sector.

Our full analysis of the Qualcomm stock

Having carefully examined Qualcomm’s most recent financial disclosures and stock performance over the past three years, this analysis integrates a wide spectrum of insights—including quantitative indicators, technical market signals, sector-specific data, and a rigorous competitive landscape scan—all synthesised through our proprietary analytics framework. The convergence of these research streams reveals a compelling dynamic for Qualcomm as we look ahead. So, why might Qualcomm stock once again become a strategic entry point into the global semiconductor and wireless technology sector in 2025?

Recent Performance and Market Context

Qualcomm’s share price currently stands at $148.34 (as of 29 May 2025), reflecting a period of stabilisation after significant volatility seen across the broader technology sector. Over the past six months, QCOM has faced a correction (-6.43%), while the one-year decline of -28.77% positions the stock not as a laggard but as a potential value play—especially when contextualised against the accompanying macroeconomic cycle.

Notably, recent weeks have seen a return to incremental gains (+0.99% on the week). This positive momentum echoes a renewed focus on robust product launches, strong quarterly earnings, and a market sentiment that is warming to technology stocks benefitting from AI and IoT-led transformation. The broader semiconductor sector, which underpins a host of modern economies including South Africa’s growing telecommunications and auto sectors, has begun to exhibit signs of cyclical recovery. Investors are increasingly eyeing legacy players with next-generation capabilities, and Qualcomm is a textbook example of such resilience.

Additionally, the company’s dividend yield (2.40%) supports its appeal to both growth and income-focused investors, a factor particularly relevant in markets such as ZA where a reliable cash flow is highly prized.

Technical Analysis

A close technical reading supports the thesis that Qualcomm is laying the groundwork for an upward reversal. As of late May 2025, the 14-day RSI stands at 49.97, indicating the stock is neither overbought nor oversold—a classic signal of consolidation that often precedes directional moves. The MACD (12,26) reading of 1.08 is a discreet buy signal, further reinforced by both the 20-day ($147.34) and 50-day ($146.41) simple moving averages crossing above the prevailing price—historically a harbinger of near-term uptrends.

Critical support remains robust at $145.22 (Fibonacci level), providing a technical floor, while resistance at $151.06 is within striking distance—a break above which could unleash more pronounced bullish flows. While the technical sentiment is described as “neutral with a bearish bias”, this is precisely the context that savvy investors look for: a transition phase where consolidation gives way to a measured bullish breakout, especially when supported by fundamental improvements and sector tailwinds.

Short- and medium-term momentum indicators underscore that buyers are re-emerging near key support, setting Qualcomm up for a possible change in trend.

Fundamental Analysis

On the fundamentals, Qualcomm continues to post numbers that sharply differentiate it from sector peers:

• Revenue Growth: Q2 FY2025 revenue grew to $10.84 billion, topping analyst estimates and marking a 15% year-on-year increase. For the full year 2024, revenue reached $38.96 billion (+8.77% vs. 2023).
• Profitability: Net income surged 40.24% to $10.14 billion for 2024. Adjusted EPS for the last quarter exceeded expectations at $2.85 per share.
• Attractive Valuation: With a trailing P/E of 15.12 and a forward P/E of just 12.58, Qualcomm trades at a notable discount both historically and relative to the sector, particularly when measured against its innovation profile and anticipated earnings growth. The PEG and P/S ratios remain attractive for investors seeking undervalued growth stories.
• Structural Strengths: Qualcomm’s unmatched patent portfolio across 4G, 5G, and—now emerging—6G standards, plus its proven ability to license technology at scale, ensures enduring revenue visibility. Its brand is synonymous with mobile connectivity, fortified by successful diversification beyond smartphones into automotive, IoT, and now data centres.

The recent beat on both earnings and revenue signals underlying operating momentum—and crucially, the ability to outperform even in challenging environments.

Volume and Liquidity

With an average 3-month trading volume of 8.93 million shares, Qualcomm displays remarkable liquidity, instilling confidence that large orders can be executed without pronounced market impact. The sizable free float ensures efficient price discovery—a critical factor underpinning the dynamic valuation potential.

Such sustained, above-average volume often precedes trend reversals and is a clear indication of continued institutional interest, especially when synchronised with improving technical and fundamental backdrops.

Catalysts and Positive Outlook

The roster of upcoming catalysts for Qualcomm is compelling and highly relevant for investors seeking differentiated exposure to the future-facing drivers of the technology sector:

• Expansion into Data Centres: The strategic decision to enter the data centre processor market, with seamless Nvidia compatibility, opens a powerful new growth avenue. The data centre market commands higher margins and is set to benefit from sustained AI and cloud adoption.
• Automotive and IoT Breakthroughs: Automotive revenue grew by 59% year-on-year in Q2 2025, and IoT by 27%—delivering a combined annualised growth of 38%. With the global pivot toward smart, connected mobility and industrial automation, Qualcomm stands out as a crucial enabler.
• AI and Edge Computing: Qualcomm’s push into edge AI, supported by patent leadership and expanding R&D capacity (notably with its new Abu Dhabi engineering hub), solidifies its role as an indispensable infrastructure provider in a world of interconnected devices.
• Potential Acquisitions: Ongoing negotiations to acquire Alphawave IP ($1.4 billion) indicate management’s commitment to strengthening IP and accelerating data-centric growth. Successful completion would further widen Qualcomm’s technological moat.
• Strategic Partnerships: Collaborations with giants like Nvidia and Microsoft (notably for AI-powered PCs) further validate Qualcomm’s strategy and underpin additional growth drivers.

Broader trends in digitalisation, automotive connectivity, and ESG-driven capital flows all fortify a supportive backdrop for Qualcomm’s strategic trajectory. Notably, the company’s global reach and ability to monetise innovation position it as a top-tier beneficiary of a sector-wide resurgence.

Investment Strategies

Given the current configuration of Qualcomm’s chart and the improving business outlook, multiple entry approaches seem justified:

• Short Term: The confluence of technical support around $145 and a likely post-consolidation breakout above $151 may offer attractive trade setups for tactically inclined investors, especially in anticipation of upcoming product launches or M&A news headers.
• Medium Term: For those seeking to ride the next wave of AI, data centre, and auto/IoT momentum, the fundamental strength of Qualcomm—combined with an undemanding valuation—supports accumulation on dips or at current ranges, ahead of expected sequential growth and material news flow.
• Long Term: Institutional investors and long-horizon savers (not least among pension funds and retirement accounts) may see current levels as a strategic reopening to semiconductor sector leadership, with resilient cash flows, strong dividend protection, and clear visibility into new profit pools such as AI infrastructure and next-gen automotive connectivity.

Notably, the proximity to technical lows and the fact that analysts’ consensus price target sits at $190.92 (implying +28.7% potential from current levels) highlight QCOM as an extremely well-positioned candidate for addition or accumulation within diversified portfolios.

Is It the Right Time to Buy Qualcomm?

All considered, Qualcomm stands at the crossroads of robust financial momentum, vast innovation-led optionality, and a technical setup that hints at a major inflection. Its ability to deliver solid earnings—even in a more challenging environment—validates the underlying quality of its franchises. Meanwhile, the imminent expansion into AI, data centres, and connected mobility presents new levers of value creation.

Current share price levels, combined with undemanding valuation metrics and a strong consensus on further upside, suggest that the stock may be entering a renewed bullish phase. With its blend of consistent cash generation, investor-friendly capital policy, and breakthrough diversification, Qualcomm seems to represent an excellent opportunity for those seeking exposure to the next wave of digital and wireless innovation.

For investors in South Africa—and globally—Qualcomm sheds the skin of a legacy mobile chipmaker to emerge as a vanguard of connected intelligence. The stock’s convergence of technical bottoming, compelling valuation, and unique growth catalysts makes it easy to see why so many are giving it renewed consideration as a strategic allocation for 2025 and beyond.

In sum, while Qualcomm’s past volatility underscores the importance of diligent risk management, the present set-up seems to justify renewed interest and potential portfolio inclusion, as the company appears poised to capture value across the evolving technology spectrum. With multiple catalysts on the horizon and an increasingly attractive technical backdrop, QCOM’s current share price looks positioned to reward forward-looking investors keen to participate in the transformation of the digital economy.

How to buy Qualcomm stock in South Africa?

Buying Qualcomm (QCOM) shares online is both straightforward and secure for South African investors, thanks to regulated brokers that make global stocks easily accessible. There are two main ways to invest: buying the shares outright (“spot buying”) or trading contracts for difference (CFDs) that track Qualcomm’s share price. Spot buying means you own real shares, while CFDs allow you to speculate on price movements with leverage—but you don’t own the underlying asset. Both methods can be accessed through licensed online brokers. For a detailed comparison to help you choose the right broker, consult our table further down the page.

Spot Buying

A cash (or “spot”) purchase of Qualcomm stock means buying real company shares through your broker. This is a simple, long-term approach: you become a shareholder, can receive dividends, and benefit directly from any increase in Qualcomm’s share price. South African brokers typically charge a fixed commission per order, often around R100–R150, or a small percentage (e.g., 0.2–0.5%), plus possible exchange and custody fees.

Example: Spot Buying

Example: If Qualcomm’s share price is $148.34 (approx. R2,700 at an exchange rate of R18.20/$), you can buy about 6 shares with a $1,000 (approx. R18,200) investment, including a R90 (about $5) brokerage fee.
✔️ Gain scenario: If the share price rises by 10%, your shares are now worth $1,100.
Result: That’s a $100 gross gain, or +10% on your investment.

Trading via CFD

CFD trading involves speculating on the price movements of Qualcomm’s share without owning the actual shares. This method is best for those looking for short-term opportunities and who understand the risks. With CFDs, fees typically include a spread (the difference between buy and sell price), and overnight funding costs if you hold positions beyond a day. Leverage allows you to gain amplified exposure with less initial capital—but also increases risk.

Example: CFD Trading

Example: With a $1,000 deposit (about R18,200), you open a CFD position on Qualcomm shares using 5x leverage, so your market exposure equals $5,000.
✔️ Gain scenario: If the stock rises by 8%, the amplified result is a 40% gain (8% × 5).
Result: That’s a $400 profit on a $1,000 outlay (excluding any fees).

Final Advice

Before investing, it’s crucial to compare brokers’ costs, available trading platforms, and terms, as these can impact your returns—our broker comparison further down the page will help you with this. Ultimately, your choice between spot buying and CFD trading should match your investment goals, timeframe, and risk appetite. Both methods offer accessible routes to gain exposure to Qualcomm’s future, whether you’re looking for long-term growth or more active short-term trading opportunities.

Our 7 tips for buying Qualcomm stock

The latest news about Qualcomm

Qualcomm reports Q2 2025 results surpassing analyst expectations in revenue and profit growth. In the most recent quarter, Qualcomm posted a revenue of $10.84 billion, exceeding the consensus estimate of $10.66 billion, with adjusted earnings per share of $2.85, also above the $2.82 forecast. Year-on-year, quarterly revenues grew 15%, reflecting accelerated momentum in diversification beyond smartphones, especially in automotive and IoT segments—areas with rapidly increasing demand in South Africa's industrial landscape. This robust financial performance reinforces the company's reputation for operational excellence and its ability to outperform market expectations.

Qualcomm moves forward with strategic expansion into data center processors through a notable Nvidia partnership. CEO Cristiano Amon has officially announced Qualcomm’s entry into the data center processor market, emphasizing collaboration with Nvidia for CPU-GPU compatibility. This initiative positions Qualcomm at the forefront of next-generation infrastructure and AI-driven workloads, which are rapidly gaining traction in South Africa’s large-scale enterprise and cloud markets. The opportunity for local integrators and hyperscalers to leverage such technology directly impacts the appeal of Qualcomm’s platform in the region, supporting ongoing digital transformation.

Automotive and IoT divisions post major annual revenue growth, increasingly relevant for South African sectors. Qualcomm’s automotive segment surged 59% year-on-year in Q2 2025, while IoT revenues grew 27%, resulting in a combined 38% annual growth rate. As South Africa accelerates the adoption of smart mobility, connectivity, and industrial automation solutions, these figures highlight Qualcomm’s central role as a supplier of critical, forward-looking technologies. Local manufacturers and service providers stand to benefit from this global innovation pipeline, auguring well for regional economic modernisation and technology exports.

Analysts reiterate a consensus “Buy,” forecasting 28.7% upside and underscoring dividend appeal for investors in ZA. The current analyst price target stands at $190.92, suggesting nearly 29% upside from present levels, supported by strong fundamentals, innovation in AI, and strategic expansion. With a forward price-to-earnings ratio of just 12.58 and an attractive dividend yield of 2.4% (ex-dividend date on 5 June 2025), Qualcomm offers South African investors both growth and income potential. The stock’s buy recommendation is further strengthened by its consistent shareholder returns, evident in recent share buybacks and dividend payments.

Technical indicators signal neutral-to-bullish momentum, with positive signals from moving averages and MACD. On 29 May 2025, the stock’s technical landscape showed RSI at a neutral 49.97, but the MACD and 20- and 50-day moving averages signalled a buy, suggesting emerging upward momentum. The $145.22 support and $151.06 resistance levels are watched closely by regional investors active on global platforms; stable technicals combined with sector tailwinds and corporate actions make Qualcomm an attractive consideration within diversified South African portfolios, especially amid growing demand for US-listed tech sector exposure.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.