Qualcomm's one of those companies that tends to fly under the radaruntil it doesn't. Sitting at the center of 5G, automotive tech, and AI-powered mobile devices, it's got its hands in just about every emerging tech trend you hear about. And if you're someone who believes that connected everything is where the world's heading, Qualcomm starts to look pretty interesting.

That said, it hasn't exactly been smooth sailing. The company's been through a rough patch lately, mostly tied to the global smartphone slowdown and some uncertainty around its biggest customer: Apple. The stock's been a bit out of favor, but that's exactly why some investors are taking a closer look. The question now isdoes the future opportunity outweigh the near-term risks?

Financial Performance: A Quiet Comeback

• Warning! GuruFocus has detected 5 Warning Signs with QCOM.

Alright, so let's talk about where Qualcomm's priced right now. Honestly? It feels like it's not getting much credit. Last I looked, it's trading somewhere around 19 times earnings, which compared to the rest of the field? That's low. You've got AMD and TXN priced way above that, and ADI's even higher.

So, naturally, you start thinking: what's the catch?

It could just be that investors still think of Qualcomm as the phone chip company. You hear it all the time like that's all they do. But if you've followed what they're actually doing lately getting into auto, pushing hard on AI you'd think that story would've started to shift by now.

But maybe not. The market's still hesitant. You've got strong fundamentals, a decent cash position, a pretty healthy margin setup and still, the valuation hangs back. Could be opportunity, could be warning. That's the tough part.

If they nail the execution outside of mobile, yeah this price looks like a deal. But if it's all talk and the real growth doesn't show up, then maybe the market had it right all along. That's kind of the balance here. Right now, it's cheap. But is it undervalued, or just fairly priced for where they're actually at?

Who Owns Qualcomm and Why?

If you take a look at who's backing Qualcomm, it's mostly the big players. Vanguard's at the top they hold a little over 10% of the stock. Right behind them is BlackRock, with close to 9%. No surprise there. These guys usually show up in solid, long-term tech names.

You've also got State Street in the mix, plus Geode Capital and Morgan Stanley all of them with meaningful stakes. It tells you that the big institutions still have confidence in where Qualcomm's heading.

One name that stands out on the individual side is Irwin Jacobs the co-founder. He still owns a decent chunk himself, somewhere around 1.6%. That kind of insider stake usually signals long-term belief, not just a board seat.

There's been some insider selling lately. About 21 million dollars' worth. But if you look into it, most of it seems routine. Tax reasons, diversification, personal stuff. Not the kind of panic-selling you'd worry about.

And there's a notable name connected to Qualcomm on the value investing side Arnold Van Den Berg (Trades, Portfolio). His firm, Century Management, has had positions here in the past. That's the type of guy who doesn't just chase trends he looks for companies with strong moats, reliable cash flow, and room to grow.

All in all, the shareholder base suggests that people who really dig into balance sheets and tech roadmaps still see something here.

Qualcomm's Valuation: Undervalued Compared to Competitors

Looking at the updated numbers, Qualcomm's valuation multiples still make it look pretty attractive. Qualcomm now trades at a P/E ratio of around 18.71, significantly below Texas Instruments (34.36), AMD (100.97), and Analog Devices (65.30).

Similarly, Qualcomm's price-to-sales (P/S) ratio stands at approximately 4.87, which is modest compared to ADI's and Texas Instruments' roughly double-digit multiples. Moreover, Qualcomm's EV/EBITDA of 15.43 remains notably below AMD's 30.56, Analog Devices' 25.82, and Texas Instruments' 22.40.

These updated valuation figures suggest investors might still be overlooking Qualcomm's broader market potential, especially its auto and IoT ambitions. But low multiples don't automatically translate to a great buy. Qualcomm needs to consistently show it can deliver strong growth outside of the smartphone market to close this valuation gap and push its stock higher.

Competitive Position: Talking Moats, Moves, and Who's Catching Up

Qualcomm's biggest strength is its IP. Its patent portfolio is one of the best in the game, especially when it comes to 5G and mobile chipsets. That licensing model has kept profits strong even during downturns.

But competition isn't standing still. Texas Instruments is building deep relationships in the auto and industrial worldspaces Qualcomm is targeting hard. TI's scale and reach are no joke, and if Qualcomm can't out-innovate, it could lose ground quickly.

AMD's another story. They're not just doing CPUs anymore. They're making big moves in AI and edge computingareas Qualcomm also wants to dominate. And AMD's aggressive pricing doesn't help Qualcomm's margins.

Then there's Analog Devices, which has carved out a strong position in RF techcritical for 5G, automotive, and industrial applications. Their recent acquisitions gave them even more firepower, and that's going to make Qualcomm's push into these markets tougher.

And of course, there's Apple. If Apple ends up ditching Qualcomm modems entirely for its in-house chips, that could be a big hit to revenue. It's not a guaranteed outcome, but it's a risk that's hard to ignore.

Future Growth Opportunities and Risks

Qualcomm's growth story is starting to shift beyond phones. The automotive business, for example, now has a pipeline of 45 billion dollars in secured design wins. That's real revenue potentialnot just hopeful forecasts.

The company's also carving out a solid niche in on-device AI. With everything moving toward AI-at-the-edge, Qualcomm's Snapdragon platform could play a major role, especially as devices become smarter without relying on the cloud.

Still, this transition won't happen overnight. And Qualcomm can't afford to miss a beat. Investors are watching closely to see if the company can actually turn those new markets into consistent growthor if they'll stay stuck being seen as a phone chip company.

Conclusion: Is Qualcomm a Buy?

If you're looking for a tech name that isn't already priced for perfection, Qualcomm deserves a spot on your radar. It's got cash flow, strong fundamentals, and a clear path to growth beyond mobile.

But it also comes with baggage. Apple's modem project, smartphone demand swings, and tight competition all mean there's risk baked in. This isn't a stock you buy and forget about. It's one you keep an eye on.

Bottom line? Qualcomm looks undervalued, and the upside is therebut the company has to deliver. If you're comfortable with some near-term volatility and believe in their expansion strategy, this could be a smart long-term play.

This article first appeared on GuruFocus.