Investment Rating - The report does not explicitly state an investment rating for the industry or Qualcomm, but it discusses market share expectations and strategic positioning, indicating a cautious outlook on market penetration and competition [2][7]. Core Insights - Qualcomm is accelerating its AI PC ecosystem, challenging the x86 architecture with its Snapdragon X Elite/Plus platform, which boasts 45 TOPS NPU performance. Over 85 Windows 11 AI+ PC models are in production or development, with plans to reduce prices to $600 by 2026 to enhance mid-range market penetration [2][7]. - The company is focusing on a hybrid AI architecture that prioritizes on-device processing for privacy and efficiency while leveraging cloud capabilities for complex tasks. This includes transferring smartphone 5G and NPU capabilities to PCs and robotics [3][8]. - Qualcomm is responding to Xiaomi's self-developed chip strategy by emphasizing the coexistence of self-design and outsourcing, maintaining that Xiaomi will still rely on Qualcomm for critical components [4][9]. - The company is restarting its Arm-based server chip business, launching a data center CPU based on the Nuvia Oryon architecture, and collaborating with NVIDIA to enhance performance and efficiency [4][10]. Summary by Sections AI PC Ecosystem - Qualcomm's Snapdragon X Elite/Plus platform is set to challenge the x86 architecture, with over 85 AI+ PC models in development and a target price of $600 by 2026 to penetrate the mid-range market [2][7]. - The Snapdragon X series supports over 750 applications and 1,400 games, addressing previous concerns about the Arm ecosystem's limitations [2][7]. On-device AI and Hybrid Architecture - Qualcomm's hybrid AI architecture emphasizes local data processing for privacy, while cloud resources are utilized for more complex tasks. The company is also promoting its AI Hub with 75 pre-optimized models to facilitate on-device AI development [3][8]. Competitive Landscape - Qualcomm's response to Xiaomi's self-developed chip highlights the balance of cooperation and competition in the industry, asserting that Xiaomi will continue to depend on Qualcomm for essential components [4][9]. Diversification Strategy - Qualcomm is reviving its Arm server chip business with the Nuvia Oryon architecture and plans to integrate its CPUs with NVIDIA's GPUs for improved performance and efficiency in data centers [4][10].

Core Viewpoint - Qualcomm Shanghai has been recognized for its contributions to technological innovation and economic development in Pudong, receiving the "2024 Pudong New Area Technology Innovation Outstanding Contribution Award" and the "2024 Pudong New Area Outstanding Contribution Award" [1][7] Group 1: Qualcomm's Achievements - Qualcomm Shanghai has received the "2024 Pudong New Area Technology Innovation Outstanding Contribution Award" for the second consecutive year, highlighting its ongoing efforts in 5G and AI technologies [1][7] - The company is a leader in connectivity and computing, continuously advancing mobile communication technologies from 3G to 5G, and is now pushing towards the 5G-Advanced phase [3] Group 2: Collaboration and Innovation - Qualcomm collaborates with industry partners to promote the development of 5G-Advanced, as demonstrated during the F1 Shanghai event where it partnered with Shanghai Mobile and Nokia Bell to deliver an enhanced live streaming experience [3] - The company has over 15 years of experience in AI research and has launched leading hardware and software solutions across various devices, including smartphones and industrial IoT [5] Group 3: Future Prospects - In 2025, Qualcomm will celebrate its 40th anniversary and 30 years in China, during which it has established joint innovation centers in cities like Hangzhou and Suzhou to support local industry development in areas such as 5G and smart connected vehicles [5]

Investment Rating - The report maintains an "Outperform" rating for the industry [2] Core Insights - The year 2025 is expected to be a breakout year for AI glasses, with significant growth in sales and the emergence of domestic SoC (System on Chip) solutions [4][39] - The global AI glasses market is projected to reach 5.5 million units by 2025, with a CAGR of 97.4% over the next six years [26] - Major brands are entering the AI glasses market, leading to increased competition and innovation [4][39] Summary by Sections AI Glasses Market Overview - In Q1 2025, global AI glasses sales reached 600,000 units, a 216% increase year-on-year, driven primarily by the success of Ray-Ban Meta glasses [20] - The report highlights that over 60 manufacturers are currently developing AI glasses, indicating a highly competitive landscape [43] SoC and Component Analysis - The main control SoC accounts for approximately 30% of the total BOM (Bill of Materials) cost of AI glasses, significantly influencing product performance and user experience [5][29] - The report identifies three main SoC solutions: single-chip SoC, dual-chip SoC with a co-processor, and a main SoC with a separate ISP [6][50] Key Players and Products - Major companies such as Meta, Xiaomi, and various domestic brands are actively launching AI glasses, with Meta's Ray-Ban Meta leading in sales [39][40] - The report suggests monitoring companies in the AI glasses chip supply chain, including Hengxuan Technology, Aojie Technology, and others [6] Future Projections - The report anticipates that by 2025, Meta will release a new AI glasses model, Hypernova, which will include a heads-up display [32] - The competitive landscape is expected to intensify as more smartphone manufacturers and tech companies enter the AI glasses market [4][39]

Core Viewpoint - Qualcomm's CEO Cristiano Amon stated that Xiaomi's self-developed chips are not expected to impact Qualcomm's business, emphasizing that Qualcomm will continue to be a strategic supplier for Xiaomi's chip needs [1] Group 1 - Qualcomm's Snapdragon chips are currently used in Xiaomi's flagship devices and will continue to be utilized in future models [1]

Group 1 - Leapmotor's Q1 revenue exceeded 10 billion, with a gross margin of 14.9%, surpassing market expectations [2] - HarmonyOS computer officially launched, marking a significant breakthrough for domestic operating systems in the personal computer sector [2] - The successful launch of the Ceres-1 sea-launched remote five carrier rocket [2] Group 2 - Douyin initiates "AI Account Creation" special governance action, focusing on rectifying the use of AI to generate vulgar and bizarre videos [2] - Nvidia is in talks to invest in quantum technology startup PsiQuantum [2] - Xiaomi's strategic new product launch event is scheduled for May 22, set to unveil the "Xuanjie O1," which utilizes second-generation 3nm process technology [2] - Qualcomm plans to launch a data center processor that can connect with Nvidia chips [2] Group 3 - Jensen Huang announced that Nvidia will launch the next-generation GB300 AI system in Q3 and will build an AI supercomputer in Taiwan, with DGX Spark already in full production [1]

Core Viewpoint - Qualcomm's stock has rebounded 25% from its multi-year low but is currently consolidating at the lower end of its trading range, indicating a lack of momentum despite being a prominent player in the semiconductor sector [1][2]. Group 1: Stock Performance and Valuation - Qualcomm closed at $153.62, with a P/E ratio of 16.42 and a dividend yield of 2.32% [1]. - The stock trades at a discount compared to major semiconductor peers, making it attractive to value-oriented investors, yet this has not translated into strong relative performance [2][3]. - Analysts have mixed sentiments, with some maintaining Buy ratings while others express caution, reflecting uncertainty in the stock's future performance [5][6]. Group 2: Market Sentiment and Analyst Ratings - Recent earnings reports were solid but did not exceed expectations, leading to a mixed reception from analysts [3][4]. - Morgan Stanley maintained an Equal-Weight rating with a price target of $163, acknowledging the company's fundamentals but noting the stock's unexpected weakness [7]. - Wells Fargo adopted a more cautious stance, lowering its price target from $175 to $140 due to concerns over Qualcomm's exposure to China and consumer markets [8]. Group 3: Future Outlook and Catalysts - The upcoming trading sessions are critical for Qualcomm, as reclaiming recent highs could restore investor confidence, while failure to do so may reinforce the perception of the stock as stagnant [9][10]. - The market is looking for more than stability; it seeks vision and compelling reasons for Qualcomm to rejoin elite semiconductor performers, which may require new product wins or strategic announcements [11][12].

Group 1: Strategic Collaboration - Qualcomm Technologies, Inc. has partnered with e& to enhance digital infrastructure in the UAE, focusing on industrial and enterprise 5G edge AI gateways [1] - The collaboration aims to develop advanced edge AI devices and support generative AI capabilities by integrating large language models [1] - Qualcomm will also work on smart mobility and safety solutions to improve the UAE's transportation infrastructure and support industrial IoT solution development across various sectors [1] Group 2: Engineering Center and Innovation - A global Engineering Center will be established in Abu Dhabi, collaborating with local and international companies to support regional strategic initiatives [2] - The center will align with national priorities and development goals, facilitating transformative technologies in critical sectors such as energy, manufacturing, logistics, retail, and smart mobility [2] Group 3: Market Position and Stock Performance - Qualcomm's establishment of the engineering center positions the company at the center of a region becoming a global hub for future-defining industries, enhancing its R&D capacity and market position [3] - Shares of Qualcomm have decreased by 22.9% over the past year, contrasting with the industry's growth of 18.1% [6] - Qualcomm currently holds a Zacks Rank of 3 (Hold), while other companies in the industry, such as Juniper Networks and InterDigital, have higher rankings [7][9]

Summary of Key Points from the Conference Call Industry and Company Overview - The conference focused on the AI server industry chain, highlighting key players such as NVIDIA and Qualcomm, along with the Taiwanese server supply chain's strengths and weaknesses [1][2]. Core Insights and Arguments - **NVIDIA's Focus on AI Servers**: NVIDIA's announcements at COMPUTEX emphasized the AI server industry, including AI factories, agentic AI, robotics, and enterprise AI transformation. The introduction of NVLink Fusion aims to strengthen interconnectivity advantages [1][2]. - **Qualcomm's Entry into Server CPU Market**: Qualcomm announced its entry into the server CPU market, aiming to disrupt the X86 ecosystem and establish a closed ARM ecosystem. The Snapdragon E-LITECOM product line was showcased for enterprise applications [1][5]. - **Taiwan's Server Supply Chain**: Taiwan's server supply chain is robust, featuring major companies like TSMC and Foxconn. However, innovation in AI applications is lagging compared to global standards [1][6][7]. - **AI Token as a Future Tool**: AI Tokens are viewed as crucial for the future, with data centers expected to produce these tokens, marking the realization of AI applications [3][14][15]. - **Market Trends**: The Middle East market is anticipated to see increased shipments, potentially replacing Singapore, which could impact NVIDIA and AMD [3][17]. Financial Performance and Forecasts - **NVIDIA's Q2 Financial Guidance**: NVIDIA's Q2 revenue guidance is projected between $4.5 billion and $4.7 billion, factoring in a $550 million HRC usage compensation. The first quarter is expected to perform well due to the flexibility of RTX replacing RWS and increased shipments to the Middle East [3][11][19]. - **Supply Chain Challenges**: NVIDIA's supply chain is facing challenges, particularly with the GB200 NFL72 product, which has a complex assembly process involving over 200 components and multiple suppliers [12][18]. Additional Important Insights - **Product Releases**: NVIDIA's key product releases include NVLink Fusion, which allows third-party integration, and RTX Pro Server, which can replace some H20 Server functionalities, especially in the Chinese inference service market [4][10]. - **Taiwan's Technological Position**: Taiwan is home to five globally significant tech companies, but it still needs to enhance its AI application innovation compared to competitors [6][7]. - **Future Product Launches**: The GBE300 MV72 is expected to be a significant product in the second half of the year, with major hardware showcases from ASUS, Acer, and MSI in the AI PC sector [9].

据披露，高通全新CPU将采用英伟达NVLink Fusion技术，实现与英伟达GPU的直接高速互联。高通技 术公司总裁兼首席执行官克里斯蒂亚诺·阿蒙(Cristiano Amon)表示："通过将我们的定制处理器接入英伟 达机架级系统架构，我们正在把高效能、低功耗计算的愿景延伸到数据中心领域。"这一技术整合将显 著优化AI工作负载下的芯片间通信效率，解决传统架构中CPU与GPU协同计算的瓶颈问题。 值得关注的是，高通近期与沙特人工智能公司Humain签署合作协议，共同建设数据中心。这一合作既 为高通新CPU提供了早期应用场景，也暗示其市场策略或聚焦特定区域和垂直领域，避开与英特尔、 AMD的正面交锋。 长期以来，英伟达GPU在数据中心主要与英特尔(INTC.US)、AMD(AMD.US)的CPU搭配使用。而随着 英伟达去年推出基于Arm架构的"Grace"CPU并进军CPU市场，数据中心算力生态竞争日趋激烈。高通此 次入局，不仅为英伟达提供了新的硬件合作伙伴选择，更可能重塑"CPU+GPU"的算力组合模式。 芯片巨头高通(QCOM.US)宣布将重返数据中心中央处理器(CPU)赛道，推出专为数据中心设计的定制化 ...

Core Viewpoint - Qualcomm is currently undervalued with a Price-To-FCF ratio of 14.2, primarily due to risks associated with losing Apple's business and customer concentration with Samsung and Xiaomi. However, it is projected to retain 70% of Apple's business by 2025 [1]. Group 1: Business Analysis - Qualcomm's competitive advantage has strengthened, positioning the company to invest in high-growth opportunities across various industries [1]. - The company employs a value investing approach that emphasizes robust business models and strategic foresight [1]. - The discounted cash flow (DCF) valuation methodology is primarily used for assessing Qualcomm's intrinsic value, while also being adaptable to other valuation techniques [1]. Group 2: Strategic Positioning - Qualcomm focuses on companies that have the potential to significantly influence the global landscape in the coming years [1]. - Business model frameworks from institutions like Harvard Business School are utilized for in-depth analysis, ensuring a comprehensive understanding of Qualcomm's strategic positioning within its industry [1]. - The approach taken by Qualcomm facilitates informed investment decisions with an emphasis on long-term growth potential and risk mitigation [1].