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QUALCOMM - AI Stock Analysis

Analysis generated February 3, 2025

QUALCOMM Incorporated is a global leader in the development and commercialization of foundational technologies for the wireless telecommunications industry. The company's primary business areas include the design and manufacturing of semiconductors for mobile devices, network equipment, and other electronic devices. QUALCOMM also licenses its intellectual property to network operators and manufacturers worldwide, helping to drive the adoption and performance of 5G technologies.

Fundamental Analysis

Examining the latest financial results, QUALCOMM reported a revenue of $10.2 billion for the last quarter. This represents a 9.06% increase from the previous quarter and an 18.69% increase year-over-year, indicating solid and consistent growth. The net income for the quarter was $2.92 billion, an impressive 37.15% increase from the previous quarter and a near doubling with a 95.97% increase year-over-year. The EBITDA came in at $3.22 billion, which increased by 18.42% quarter-over-quarter and 71.65% year-over-year.

The current Price/Earnings (P/E) ratio stands at 19.34, suggesting that it is within a normal range and may indicate a balanced valuation. Insider trading activity has seen some company insiders selling their stock, which could be a bearish signal.

Technical Analysis

Today, QUALCOMM's stock price stands at $171.61. This is an impressive 8.73% increase over the past month and a 23.53% increase over the past year, indicating a positive long-term trend. Despite this, the stock trend is currently considered bearish. The Simple Moving Average (SMA10) of 172.10 is lower than the previous SMA10 of 172.15, suggesting a potential downward trend. Additionally, with a Relative Strength Index (RSI) of 73.2, the stock is currently in an overbought condition, which could potentially indicate a bearish reversal.

Alternative Data Analysis

Looking at job postings and employee sentiment, QUALCOMM has 1,165 open positions, which has been stable over the last couple of months, indicating a steady demand for talent. The employee business outlook remains neutral, suggesting neither strong optimism nor pessimism.

In terms of customer acquisition, QUALCOMM's website attracted an estimated 3.3 million visitors lately, although this figure is down by 9% over the past couple of months. This negative trend could indicate a potential loss in customer interest. The company's engagement on social media platforms also shows stability but lacks growth, with 200,000 followers on Instagram and 450,000 followers on Twitter. Notably, the Twitter follower count has remained flat, indicating no change in public interest.

Finally, according to AltIndex's AI score—a predictive model assessing various factors—QUALCOMM scores 58, translating to a hold signal.

Conclusion and Recommendation

In conclusion, QUALCOMM demonstrates strong financial health with growing revenue, net income, and EBITDA. The P/E ratio remains within a normal range, suggesting a balanced valuation. However, recent insider selling could be a concerning signal. Technical analysis presents mixed outcomes: while the stock price has notably improved over the short and long term, the current trend and RSI suggest caution.

From an alternative data standpoint, the company maintains a stable workforce, though waning customer interest signals caution. Given these mixed signals and an AI score suggesting a hold, the recommendation for QUALCOMM at this time is to hold the stock. Closer monitoring of upcoming financial results, market trends, and company announcements should guide any future investment decisions.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.