QCOM: JPMorgan ups target on upside, but $75M antitrust settlement still weighs

Court: S.D. California

Case: 3:17-cv-00121

Analyst upgrades and strong technical momentum have put Qualcomm QCOM back on investor radar. Shares are up nearly 30% since April, and with JPMorgan now raising its price target to $190, bullish sentiment may be gaining real traction.

However, while Qualcomm’s low valuation and potential earnings catalyst stand out, its past legal baggage over anticompetitive practices continues to shadow its long-term positioning.

Key Takeaways

• JPMorgan Upgrade: Analyst Samik Chatterjee reiterates "Overweight" rating and raises target to $190—nearly 25% upside from current levels.
• Valuation Discount: QCOM trades at 15x earnings vs. NVIDIA (55x) and AMD (115x); P/E of 16.09 with a 2.25% dividend yield.
• Technical Uptrend: Up 30% from April lows; pattern of higher highs and higher lows could point to breakout potential.
• Earnings Ahead: Investors are eyeing Qualcomm’s next report as a catalyst; strong history of beating expectations adds to optimism.
• Broader Bull Case: JPMorgan sees robust cloud-related spending in 2H 2025 as a tailwind, while noting some macro-sensitive segments still require monitoring.
• Recent Action: Stock closed at $157.99 on July 22, off from its 52-week high of $196.24.

Timeline Overview

• Jan 17, 2017: FTC files complaint against Qualcomm for anticompetitive licensing and chip supply practices.
• Jan 18–19, 2017: Media reports drive QCOM down 18.3% amid investor concern.
• Jan 23, 2017: Shareholders file lawsuit over market manipulation and internal control weaknesses.

Allegations Include

Investors claimed Qualcomm used its dominant market position to overcharge for licensing, deny chip access to non-compliant firms, and offer selective discounts (e.g., to Apple) in exchange for exclusivity. Reports also criticized the company’s refusal to honor fair licensing terms, violating FRAND commitments and suppressing competition.

Investor Update

Qualcomm has agreed to settle the investor lawsuit tied to these antitrust and financial control violations. While terms were finalized, the case highlights the regulatory and reputational risks the chipmaker has faced—even as its growth narrative gains fresh momentum in 2025.

You can check more information about it and file for a payout HERE.