Goldman Sachs: Qualcomm Inc. (QCOM.US) Key Takeaways from Investor Day 2026
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Goldman Sachs published a report following Qualcomm's 2026 Investor Day, reiterating a Buy rating with an unchanged price target of $220. The target is based on 16 times projected 2027 non-GAAP EPS of $14.00. Management outlined ambitious 2029 revenue targets across three growth pillars: $8 billion for automotive, $14 billion for IoT, and $4 billion for edge AI. Collectively, these segments are targeted to reach $26 billion, representing substantial growth from the current $10 billion baseline.
The automotive business currently generates approximately $2 billion in annualized revenue, while the IoT pipeline benefits from broad exposure across industrial, edge networking, and consumer electronics. Edge AI, encompassing AI PCs, XR, and robotics, leverages Qualcomm's strong position in AI inference. Smartphone operations remain the core cash flow engine, supported by an estimated 10% growth in global 5G handset shipments to 800 million units in 2026. Furthermore, the extended modem supply agreement with Apple through 2027 removes near-term uncertainty. Management also guided fiscal 2026 non-GAAP EPS to a range of $12.50 to $13.50, exceeding market expectations. Goldman views current valuations as attractive, trading below historical averages. Key risks include potential smartphone demand softness, intensifying competition, and Apple's in-house modem development progress.