QCOM: Analysts back expansion, but $75M investor settlement still a concern

Court: S.D. California

Case: 3:17-cv-00121

Qualcomm QCOM is back in the spotlight with analysts backing its growth beyond smartphones and a price target upgrade from JPMorgan. Yet, the company’s $75 million investor settlement over past anticompetitive practices continues to cast a shadow.

Key Developments and Analyst Highlights

• JPMorgan raised its price target to $190, implying nearly 25% upside for QCOM, citing momentum in automotive and AI segments.
• Qualcomm aims to cut smartphone dependence from 70% in 2024 to 50% of total revenue by 2029.
• Diversification strategy targets $22B in non-handset revenue by 2029 from segments like PC, automotive, IoT, and XR.
• Lobbying spend hit $1.45M in Q2 2025 focused on AI, vehicle connectivity, and key congressional bills.
• Institutional moves are mixed: BlackRock increased its stake while Wellington Management and Amundi trimmed positions.

Timeline Overview

• January 17, 2017: FTC filed a complaint accusing Qualcomm of anticompetitive practices in chip licensing.
• January 19, 2017: QCOM fell over 18% following public news reports on licensing and exclusivity agreements.
• January 23, 2017: Investors filed a lawsuit alleging financial reporting failures and monopolistic tactics.
• July 2025: Qualcomm agreed to pay $75M to resolve investor claims tied to those 2017 allegations.

Allegations Include

• Overcharging for licensing and refusing to sell chips to companies that declined unfair terms.
• Providing lower royalties to Apple in exchange for exclusive chip use.
• Violating its obligation to offer ‘FRAND’ licenses to competitors in the industry.

Investor Update

• The $75 million cash settlement ends years of litigation tied to FTC antitrust findings and investor complaints.
• Investors alleged losses tied to misleading business practices and inadequate financial transparency.
• While the payment resolves legal risk, it underscores historic governance concerns at the company.

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