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SpaceX Delivered Fantastic News for Qualcomm Stock Investors

SpaceX Delivered Fantastic News for Qualcomm Stock Investors

Parkev Tatevosian, CFA
Analyzed Watch on YouTube Requested On
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Entry is the asset's closing price on the publication date. Current is the last close on record.

  1. 01 QCOM NASDAQ BUY +0.00%
    Entry $156.75 05 Nov 2026
    Current $156.75 05 Nov 2026
    Result +$0.00
    vs. index +0.0% SPY +0.0% over the same days

    Cite this call Watch source segment (307s) *

    Surrounding source transcript
    …nter builders for similar components and that's causing prices to increase for consumer electronics. Still, despite those headwinds, the lower valuation and the prospects for data center expansion have me enthusiastic about Qualcomm stock. I have the stock ranked as a buying opportunity with a relatively high conviction, a relatively high confidence level that it will indeed be a great investment. I own Qualcomm stock in my portfolio and I'm interested in adding more. And we're going to learn more about the AI industry overall and data center expansion when Nvidia reports their quarterly results on November 17th, 2026. I'll be going…

    I have the stock ranked as a buying opportunity with a relatively high conviction, a relatively high confidence level that it will indeed be a great investment.

    AI-extracted context Still, despite those headwinds, the lower valuation and the prospects for data center expansion have me enthusiastic about Qualcomm stock. I have the stock ranked as a buying opportunity with a relatively high conviction, a relatively high confidence level that it will indeed be a great investment. I own Qualcomm stock in my portfolio and I'm interested in adding more. And we're going to learn more about the AI industry overall and data center expansion when Nvidia reports their quarterly results on November 17th, 2026.

  2. 02 QCOM NASDAQ BUY +0.00%
    Entry $156.75 05 Nov 2026
    Current $156.75 05 Nov 2026
    Result +$0.00
    vs. index +0.0% SPY +0.0% over the same days

    Cite this call Watch source segment (21s) *

    Surrounding source transcript
    …X has selected its Dragon Wing cellular infrastructure platforms to power Starlink Mobile's nationwide terrestrial 5G network. So, this is great news for Qualcomm, which has shown an ability to expand with new companies and new categories. And this is one of the reasons why I've added Qualcomm stock to my portfolio and one of the reasons why I've ranked Qualcomm as a buying opportunity. So, I wanted to go into these details, see what it means for Qualcomm stock investors and update you on my fair value estimates of the company and see if it's still a buying opportunity even after this news because the news sent shares of …

    And this is one of the reasons why I've added Qualcomm stock to my portfolio and one of the reasons why I've ranked Qualcomm as a buying opportunity.

    AI-extracted context SpaceX delivered fantastic news for Qualcomm stock investors as on Wednesday, Qualcomm announced that SpaceX has selected its Dragon Wing cellular infrastructure platforms to power Starlink Mobile's nationwide terrestrial 5G network. So, this is great news for Qualcomm, which has shown an ability to expand with new companies and new categories. And this is one of the reasons why I've added Qualcomm stock to my portfolio and one of the reasons why I've ranked Qualcomm as a buying opportunity. So, I wanted to go into these details, see what it means for Qualcomm stock investors and update you on my fair value estimates of the company and see if it's still a buying opportunity even after this news because the news sent shares of Qualcomm stock up by 2.4%.

Full Transcript
SpaceX delivered fantastic news for Qualcomm stock investors as on Wednesday, Qualcomm announced that SpaceX has selected its Dragon Wing cellular infrastructure platforms to power Starlink Mobile's nationwide terrestrial 5G network. So, this is great news for Qualcomm, which has shown an ability to expand with new companies and new categories. And this is one of the reasons why I've added Qualcomm stock to my portfolio and one of the reasons why I've ranked Qualcomm as a buying opportunity. So, I wanted to go into these details, see what it means for Qualcomm stock investors and update you on my fair value estimates of the company and see if it's still a buying opportunity even after this news because the news sent shares of Qualcomm stock up by 2.4%. I want to thank the Mly Fool for sponsoring this video. Visit f.com/parkev for the 10 best stocks to buy now. >> SpaceX has ambitions of turning its Starlink service into a major US mobile carrier and it went one step closer with this announcement. According to Qualcomm, the new deal will allow both companies to begin deploying advanced 5G service and provide an opportunity to lay the foundation for an AI native 6G network in the years ahead. And that's one of the catalysts that could drive Qualcomm stock higher in the coming years is that next generation upgrade cycle to 6G up from 5G. Remember Qualcomm, the smartphone industry, the cellular network industry is one of its core categories. It is expanding into automotive, into the PC industry and a little bit later next year into the data center industry, but the smartphone category and cellular networks continues to be its primary category for revenue and profit. They went on to say that their agreement with SpaceX is structured in such a way that as the deployment begins starting from next year, it's going to ramp up pretty rapidly from there onwards, said the EVP and general manager for technology planning, edge solutions, and data centers at Qualcomm. So, it's a multi-year agreement that we have with them in terms of the deployment capability as we ramp up all the way nationwide coverage, he added. So this could be a big deal for Qualcomm even though the terms of the agreement were not revealed in this article. So because the terms of the agreement and the financial implications were not revealed in these statements, I haven't incorporated the news into my discounted cash flow valuation model. I don't want to speculate as to how much it would impact the company's results. But what I can say is it's likely to impact its results for the positive. So the revisions are likely to be higher for my estimates for free cash flow for Qualcomm going forward. Already I've estimated Qualcomm stock is significantly undervalued without this news. I was counting on Qualcomm's success in the data center category to be that next catalyst that could drive Qualcomm stock higher. So this was icing on the cake. I calculated a fair value for Qualcomm at $282 and even after today's news, it's selling at $169, which leaves it significantly undervalued in my view. I also like to look at valuation on a forward market multiple basis. And one of my favorite estimates is the forward PE ratio. Right now, Qualcomm is selling at a forward price to earnings of just 13, which is near the lowest you've been able to buy this stock going back several years. For a brief moment earlier in 2026, you were able to buy the stock at a lower price, but the valuation quickly soared higher. And if we look back in 2025, there was also another brief moment where you were able to buy the stock at a lower price. And those have been it. you haven't really been able to buy Qualcomm stock at a much lower valuation. Now, I mentioned that one of its core categories is the smartphone industry, which is struggling in 2026 and will likely continue to struggle in terms of overall unit sales in 2027. That said, it's likely to generate higher average selling prices per smartphone and incorporate more components in each smartphone as consumers are willing to pay higher prices to have those AI capabilities embedded in those smartphones and higher prices they have to pay because of higher component costs of memory and storage that's stemming from soaring demand in data centers for similar components. manufacturers are having to compete with data center builders for similar components and that's causing prices to increase for consumer electronics. Still, despite those headwinds, the lower valuation and the prospects for data center expansion have me enthusiastic about Qualcomm stock. I have the stock ranked as a buying opportunity with a relatively high conviction, a relatively high confidence level that it will indeed be a great investment. I own Qualcomm stock in my portfolio and I'm interested in adding more. And we're going to learn more about the AI industry overall and data center expansion when Nvidia reports their quarterly results on November 17th, 2026. I'll be going live to cover those results. So, if you want to attend that event, it's going to be exclusive for channel members. So, click that join button below, check out our channel membership program, and pick the level that's right for

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