Just because a stock isn’t near its all-time high, doesn’t mean there’s a good buying opportunity. Qualcomm (NASDAQ:QCOM) stock is a textbook example of this.

Before you think about taking a share position in Qualcomm, make a thorough analysis of the relevant facts and metrics. Ultimately, you’ll probably decide to stay on the sidelines.

Qualcomm has a global scope as it distributes wireless products, including artificial intelligence (AI) enabled device components, to multiple regions. That’s all fine and well, until international conflict flares up.

Now, as 2023 enters its second half, Qualcomm and its shareholders could be in for a bumpy ride.

Is QCOM Stock Irresistible, or Just a Non-Starter?

Before we get into the international issues, let’s clear up an important issue. As the old saying goes, price is what you pay, but value is what you actually get. So, is QCOM stock a good value now?

Not really. It’s not a good sign that the Qualcomm share price increased little in this year’s first half. This occurred despite the rally in the Nasdaq, and despite Qualcomm jumping on the AI bandwagon.

In other words, QCOM looks more like a non-starter than a real value. Besides, while Qualcomm’s GAAP trailing 12-month (TTM) price-to-earnings (P/E) ratio of 12.27x might look enticing, there are other metrics to consider.

For instance, Qualcomm’s TTM price-to-sales (P/S) ratio of 3.14x is higher than the sector median P/S ratio of 2.83x. Qualcomm’s TTM price-to-book (P/B) ratio of 6.52x is more than double the sector median P/B ratio of 3.08x.

China-U.S. Tensions Could Cause Problems

Due to general softness in smartphone sales, Qualcomm reportedly implemented job cuts at the company’s San Diego headquarters. Clearly, Qualcomm isn’t in perfect condition financially and operationally.

Now, there’s an extrinsic issue that could pose a major problem for Qualcomm. According to Reuters and The Wall Street Journal, the U.S. government is considering enacting new restrictions of AI chip exports to China. Apparently, U.S. officials are concerned about potential security breaches stemming from China using American-made AI chips.

Qualcomm and other tech-component manufacturers might need a special export license to ship certain products to China. You’ll definitely want to stay tuned for updates on this ongoing story.

Play It Safe, and Just Watch QCOM Stock

Are shares of Qualcomm trading at an attractive value? It depends which metric you’re using. Some valuation gauges seem to indicate that it’s not the right time to start an investment in Qualcomm.

Then, we need to look at extrinsic problems. Even if there are no immediate export restrictions, simmering Sino-U.S. tensions could affect Qualcomm’s top and bottom lines in the future. Therefore, it’s probably better to be safe than sorry, and to stay on the sidelines with QCOM stock.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.