Qualcomm: Maintain $180 Fair Value as It Highlights Auto and Internet of Things Revenue Targets

Narrow-moat Qualcomm’s investor day laid out revenue targets for its automotive and various Internet of Things product lines that were encouraging but largely in line with our prior expectations. We maintain our $180 fair value estimate and view shares as modestly undervalued. We still view Qualcomm as closely tied to the smartphone market for the next few years, but acknowledge that its efforts in auto and IoT, as highlighted in this event, will eventually drive Qualcomm to be a more diversified processor maker. We have no qualms with Qualcomm’s focus on these non-smartphone end markets.