Qualcomm Is 5x Cheaper Than AMD, But Won’t Be for Long

Key Points

• Qualcomm shares are up 25% since April’s low, with strong bullish momentum.
• The company's price-to-earnings ratio is 15, while AMD’s is 80.
• Benchmark and JPMorgan Chase analysts see up to 50% upside from current levels.

Qualcomm Inc. NASDAQ: QCOM closed at its highest level in more than a month on Monday night, continuing a solid recovery from its post-earnings dip two weeks ago.

Shares are now up more than 12% from the low, climbing with conviction as technical indicators increasingly support the bulls. The relative strength index (RSI) is at its highest since February, while the Moving Average Convergence Divergence (MACD) is trending upward, suggesting momentum remains firmly on the side of buyers.

Since hitting a multi-year low at the start of April, Qualcomm shares have bounced nearly 25%. The stock is working hard to erase its 2025 losses and potentially finish the first half of the year in the green. That kind of reversal tends to catch the attention of institutional money managers, particularly when the underlying valuation is compelling.

Why Qualcomm’s Valuation Is Hard to Ignore

The real story behind Qualcomm’s setup right now is how cheap it still is compared to peers. Its price-to-earnings (P/E) ratio sits at just 15.

In contrast, Advanced Micro Devices NASDAQ: AMD is trading with a P/E of 80. That makes AMD more than five times more expensive on an earnings basis.

P/E isn’t the only metric investors should use, but in this context, it’s telling.

Qualcomm has delivered consistent earnings beats in recent quarters, including its latest report, and continues to return capital to shareholders.

For a company with a healthy dividend yield, a broad product portfolio, and rising exposure to automotive and AI opportunities, a P/E of 15 feels like a market oversight that’s unlikely to last.

Analysts Still See Plenty of Upside

Even though Qualcomm’s drop in post-earnings shook some investors' confidence, several analysts reaffirmed their bullish stance shortly after. Teams from Benchmark, Rosenblatt Securities, JPMorgan Chase, and Robert W. Baird all reiterated Buy or equivalent ratings following the report.

Benchmark and Baird, in particular, pointed to Qualcomm’s upside potential based on its strong fundamentals and improving diversification. Rosenblatt’s $225 price target implies nearly 50% upside from Monday’s closing level of just above $150.

With earnings strength, a low valuation, and key tailwinds in 5G, automotive, and Internet of Things (IoT), the bull case remains compelling. Yes, Qualcomm might not generate the same headlines as some of its larger competitors, but its long-term potential is quietly strengthening, and the current price makes it one of the best relative value plays in the chip space.

The Technical Picture Supports a Breakout

From a technical analysis standpoint, Qualcomm is starting to look coiled for a larger move. Shares are forming a steady trend of higher lows and higher highs, suggesting strong accumulation and improving investor sentiment. The RSI and MACD support this view, and the recent reclaiming of key resistance levels adds further weight.

If the stock can hold its current trend and push through near-term resistance around the $155–$160 zone, momentum traders may pile in with force. And if sentiment in the broader semiconductor sector continues to improve, Qualcomm could become one of the better performers through the summer.

Why Qualcomm Deserves a Second Look

Qualcomm is quietly putting together one of the more attractive setups in the chip sector. A 25% rally from the lows, bullish technical indicators, a modest valuation, and upside targets from multiple top-tier analysts all make for a strong bull case.

While some on Wall Street remain cautious following the recent earnings report, others are clearly getting off the sidelines and getting into position for the long term. Qualcomm might still be trading like a laggard, but we shouldn’t expect that to be the case for much longer.