Parkev Tatevosian, CFA on $QCOM (Nov 6, 2026)

The first undervalued semiconductor stock I will discuss is Qualcomm. I estimated the amount of free cash flow that I think Qualcomm will generate from today and into the very distant future, and discounted those cash flows to their present value because money in the future is worth less to me than the money in my pocket today.

There is the element of the time value of money and the risk of those future cash flows , and that is why I apply a discount rate to all those future cash flows.

Therefore, this calculation leads me to an estimate of the fair value of the price that I believe the stock is worth today. I compare that to the current market price to determine whether the stock is undervalued or being sold at a discount.

Accordingly, for Qualcomm, I calculated the fair value of the stock at $282. The current market price is $165, leaving an upside potential of about 71% in my opinion for Qualcomm stock .

Of course, the most optimistic factor regarding Qualcomm is its anticipated entry into the data center sector . It has signed some deals with major cloud computing companies, including MetaPlatforms and Amazon, and is positioned to start generating revenue in 2027, which could boost the company’s revenue, profits, and free cash flow and offset some of the increased risks the company faces.

My biggest concern regarding Qualcomm is the decline of the consumer electronics industry. The year 2026 brought higher prices for components such as memory and storage, and this was a hurdle for consumer electronics such as smartphones.

Qualcomm derives a significant amount of revenue and profit from the smartphone industry, so setbacks in that industry were undoubtedly bad news for Qualcomm.

However, I believe the positives outweigh the risks, and I see Qualcomm as an undervalued semiconductor stock that investors can add to their portfolios now in November.

I already own Qualcomm shares in my portfolio, and I am interested in adding more.