Is QCOM (QUALCOMM Incorporated) Halal or Haram?

Based on our AAOIFI-standard shariah screening, QCOM is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (10.58% vs ≤33% threshold), interest income ratio (1.44% vs ≤5% threshold), and cash & securities ratio (8.06% vs ≤33% threshold).

Qualcomm is a global leader in wireless technology, best known for its Snapdragon processors that power a vast majority of the world's Android smartphones. The company operates primarily through two main segments: QCT, which sells the actual semiconductor chips for 5G, automotive, and IoT applications, and QTL, which licenses its massive portfolio of essential patents to other manufacturers. Essentially, if a device connects to a cellular network, it likely relies on Qualcomm's intellectual property. For Muslim investors, Qualcomm is currently classified as Halal, having passed all four AAOIFI screening metrics. The company's business activities are fundamentally permissible, as they focus on hardware and software for communication rather than prohibited industries like gambling or alcohol. This clean pass means investors can confidently include QCOM in their portfolios without worrying about major shariah violations in its operations. Fin ancially, Qualcomm demonstrates strong adherence to Islamic finance principles with a debt-to-market cap ratio of just 10 .6%, significantly lower than the 33% maximum allowed. Additionally, its interest-bearing cash and securities sit at 8.1% of its market cap, and interest income accounts for only 1.44% of revenue. These low leverage and interest figures indicate a financially healthy structure that aligns well with the conservative requirements of shariah screening. Investors should continue to monitor the company's interest income levels, as large technology firms often hold significant cash reserves that generate interest. While the current 1.44% is well within the safe zone, any significant increase in cash holdings or interest rates could theoretically push this closer to the 5% limit, requiring closer attention during future quarterly reviews. QUALCOMM Incorporated operates in the Technology sector under the Semiconductors industry and is headquartered in San Diego, CA, US. The company is led by CEO Cristiano Renno Amon and employs approximately 49,000 people.

QCOM was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. QCOM passed 4 of these 4 screens.

Although QCOM passes all shariah screens, it does earn $639.0M in interest income (1.44% of revenue). Many scholars recommend purifying this portion by donating the equivalent percentage of any dividends received to charity. For example, if you receive $100 in dividends, you would donate approximately $1.44 to purify the income.

QCOM was last screened on 2026-02-24. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.