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Qualcomm (NASDAQ:QCOM) continues to be in a correction mode after hitting a June peak of over $225. The stock is currently trading at over 20% below the recent peak despite beating revenue and earnings estimates in the recent earnings. However, the stock is quite cheap when we look at some of the key tailwinds in various business segments. The automotive business reported an 87% YoY growth and has seen good growth projections for the future as the auto industry tries to build “smarter cars”. The IoT segment reported an 8% YoY decline in revenue, but new XR categories like Meta’s (META) Ray-Ban smart glasses show huge potential.
The EPS estimate for FY26 is $12.5 which gives the stock a forward PE of only 13.5. This is one of the lowest multiples within the chip industry and the stock could be a good value bet for long-term investors. The dividend yield is over 2% and the company has a good history of giving strong…
