Company Overview - Qualcomm closed at $154.80, with a +1.44% change from the previous day, outperforming the S&P 500's daily loss of 0.01% [1] - Prior to the latest trading session, Qualcomm shares had decreased by 0.66%, lagging behind the Computer and Technology sector's gain of 7.44% and the S&P 500's gain of 5.37% [1] Upcoming Earnings - Qualcomm's earnings report is anticipated on July 30, 2025, with expected EPS of $2.68, reflecting a 15.02% increase from the prior-year quarter [2] - Revenue is projected to be $10.35 billion, indicating a 10.24% rise compared to the same quarter last year [2] Full Year Projections - For the full year, earnings are projected at $11.71 per share and revenue at $43.54 billion, showing increases of +14.58% and +11.76% respectively from the previous year [3] - Recent analyst estimate revisions are seen as indicators of optimism regarding Qualcomm's business outlook [3] Valuation Metrics - Qualcomm is currently trading at a Forward P/E ratio of 13.04, which is a discount compared to the industry average Forward P/E of 27.6 [6] - The company has a PEG ratio of 1.59, which is comparable to the industry average PEG ratio of 1.6 [6] Industry Context - The Electronics - Semiconductors industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 56, placing it in the top 23% of over 250 industries [7] - The Zacks Industry Rank is based on the average Zacks Rank of individual stocks within the industry, with top-rated industries outperforming the bottom half by a factor of 2 to 1 [7]

Core Viewpoint - The meeting between Ren Hongbin, President of China Council for the Promotion of International Trade, and Alex Rogers, President of Qualcomm's Technology Licensing and Global Affairs, focused on enhancing Sino-U.S. business exchanges and cooperation in the digital technology industry chain and supply chain [1] Group 1 - The meeting took place on July 17, during Qualcomm's participation in the third Chain Expo in China [1] - Discussions included optimizing the business environment for foreign enterprises in China [1] - The dialogue aimed to deepen cooperation in the digital technology sector [1]

Core Insights - The article emphasizes the importance of identifying good companies at bargain prices for long-term returns and dividends in various investing climates [1] Group 1: Company Strategies - Grant Gigliotti, founder of Beat The Market Analyzer, focuses on value investing strategies inspired by Warren Buffett to identify companies with strong fundamentals available at significant discounts from their intrinsic value [2]

Core Viewpoint - Qualcomm Inc. is experiencing a sustained rally since April, which is significant for a stock that has faced volatility in recent years [1][2] Stock Performance - Qualcomm shares are currently priced at $152.70, down 0.89% from the previous day, with a 52-week range between $120.80 and $200.00 [2] - The stock has increased nearly 30% from its lows in April, characterized by a pattern of higher highs and higher lows, indicating a bullish trend [2] Valuation Metrics - Qualcomm's P/E ratio stands at 15.55, which is notably lower than peers like NVIDIA at 55 and AMD at 117, suggesting it is one of the most affordable large-cap semiconductor companies [4][6] - The stock is forecasted to have a 12-month price target of $185.77, representing a potential upside of 21.81% from its current price [8] Market Sentiment - Despite recent earnings beats, the market has not rewarded Qualcomm with significant price increases, indicating a lack of confidence in its growth trajectory [9] - Analysts have maintained a Neutral rating on Qualcomm, reflecting a cautious stance until stronger performance signals are observed [9] Future Outlook - The upcoming earnings report at the end of July is anticipated to be a pivotal moment for Qualcomm, as a strong performance could pressure analysts to reassess their conservative ratings [12] - The current market positioning suggests that investing in Qualcomm may be seen as a contrarian trade, betting on the market underestimating its potential [10][11]

Core Insights - Qualcomm is accelerating the deployment of AI capabilities across various terminals, leveraging innovation and market opportunities to deepen industry collaboration and drive technological innovation [1] Group 1: Qualcomm's Commitment to China - 2025 marks an important milestone as Qualcomm celebrates 30 years in China, emphasizing its role as a leading player in global connectivity and computing [2] - Qualcomm provides essential chip solutions such as modems, processors, and RF front-end modules, facilitating innovation in smart terminals, automotive, and IoT sectors [2] - The company highlights the importance of open collaboration in the industry, positioning China as a significant source of global innovation [2] Group 2: AI Deployment and Product Showcase - Qualcomm is partnering with various Chinese ecosystem partners to deploy AI applications on a wide range of devices, including smartphones, automobiles, XR headsets, PCs, and industrial IoT terminals [2] - At the expo, Qualcomm showcased four XR terminal products from companies like Xiaomi and PICO, including the newly launched Xiaomi AI smart glasses and PICO 4 Ultra [2] Group 3: Global Market Adaptation - Qualcomm's support for Chinese clients enables rapid adaptation of products to global markets, with Chinese brands occupying eight of the top ten global smartphone positions [3] Group 4: Industry Collaboration and Innovation - The key to Qualcomm's success in China is "deepening collaboration," which has proven essential for industry upgrades [4] - Qualcomm has displayed a range of Snapdragon-enabled smart terminals at the expo, including flagship smartphones from Chinese brands, showcasing over 100 product designs supporting diverse AI applications [4] - The company has expanded its manufacturing capabilities in Wuxi to meet the growing demand in the 5G sector and established joint innovation centers in collaboration with local governments [4] Group 5: Automotive Sector Transformation - Qualcomm's Snapdragon digital chassis solutions are transforming vehicles from mechanical products to intelligent mobile terminals, supporting over 210 models from various Chinese automotive brands since 2023 [5] - The Li Auto MEGA, featuring the fourth-generation Snapdragon cockpit platform, was highlighted for its advanced graphics processing and local AI capabilities, enhancing user interaction within the vehicle [5]

Core Viewpoint - The meeting between China's international trade negotiation representative and Qualcomm's president highlights ongoing discussions regarding technology licensing and global business strategies [1] Group 1 - The meeting took place on July 16, with Li Chenggang, the international trade negotiation representative and vice minister, engaging with Roger Cheng, Qualcomm's president of technology licensing and global affairs [1]

Group 1 - The article provides a top-down analysis of the information technology sector, focusing on subsector metrics related to value, quality, and momentum [1] - It aims to assist in analyzing sector ETFs, specifically the Technology Select Sector SPDR [1] - The author, Fred Piard, has over 30 years of experience in technology and has been investing in data-driven systematic strategies since 2010 [1] Group 2 - The investing group led by Fred focuses on quality dividend stocks and companies at the forefront of tech innovation [1] - The group also provides market risk indicators, real estate strategies, bond strategies, and income strategies in closed-end funds [1]

Core Insights - Qualcomm's global vice president, Hou Mingjuan, emphasized the company's 30-year commitment to China and its role in the global supply chain during the China International Supply Chain Promotion Expo [1][2] - The company has significantly contributed to the mobile communication industry by providing essential chip solutions, which have facilitated innovation in smart terminals, automotive, and IoT sectors [2][3] Group 1: Achievements and Collaborations - Over the past 30 years, Qualcomm has supported Chinese smartphone manufacturers in expanding globally, with 8 out of the top 10 smartphone brands being Chinese [3] - Qualcomm's Snapdragon 8 Gen 1 has been integrated into over 100 product designs within a year, enhancing AI capabilities across various devices [3] - In the automotive sector, Qualcomm's collaboration with major Chinese car manufacturers has led to the launch of over 210 smart vehicle models [3] Group 2: Future Outlook - Qualcomm plans to continue leveraging innovation and market opportunities to deepen industry collaboration and drive technological advancements [4] - The company believes that open cooperation is essential for industry upgrades and will remain a driving force for the future of intelligent connectivity [4]

Group 1 - Qualcomm showcased its cutting-edge technologies in various fields including 5G Advanced, AI, smartphones, PCs, automotive, XR, and IoT at the third China International Supply Chain Promotion Expo [1][3] - The company aims to deepen collaboration with Chinese partners, leveraging 5G-A and AI technologies to promote cross-industry and cross-regional ecosystem synergy [3][11] - Qualcomm's "Wireless Care" initiative provided 5G-A network services at the expo, utilizing 26GHz high-frequency spectrum to support high-bandwidth applications and seamless Wi-Fi coverage [3][6] Group 2 - In the PC sector, ASUS and Lenovo's AI PCs highlighted the capabilities of the Snapdragon X Elite platform, with over 85 AI PC devices launched and expectations to exceed 100 by next year [6] - The XR field featured products from Xiaomi, Thunderbird, Yingmu, and PICO, showcasing immersive experiences powered by Snapdragon platforms [6][7] - In the automotive sector, the Ideal MEGA vehicle, equipped with the fourth-generation Snapdragon cockpit platform, demonstrated advanced graphics processing and AI capabilities for enhanced user interaction [7][9] Group 3 - Qualcomm's new enterprise brand "Qualcomm Leap" was introduced, showcasing applications in robotics, industrial, agricultural, and retail sectors, highlighting the company's strengths in edge AI and low-power computing [9] - The company emphasizes the importance of open collaboration in the global supply chain and aims to continue deepening partnerships to achieve technological innovation and industry application integration [11]

Investment Rating - The report gives Qualcomm an "Overweight" rating for the first time [5][15]. Core Views - Qualcomm is a global leader in wireless communication technology, with mobile chips as its core business. The company is expected to maintain its leading position in high-end smartphone SoC and smart cockpit SoC markets, while also expanding its presence in AI smart glasses and data center CPU businesses, which may become a second growth curve in the long term [5][15]. Summary by Sections Company Overview - Qualcomm was founded in 1985 and went public in 1991. The company focuses on mobile, IoT, and automotive sectors, with mobile business accounting for 63.81% of total revenue in FY2024, generating $24.863 billion [1][38]. Technology and Patent Strategy - Qualcomm builds a strong patent moat through a combination of self-research and acquisitions, holding approximately 5,600 families of 5G SEP patents, ranking second globally. The technology licensing business is the second-largest source of revenue and profit, maintaining a pre-tax profit margin of over 60% for nearly a decade [2][43]. Business Growth Opportunities - The smartphone market is showing weak recovery, but IoT and automotive businesses are expected to create a second growth curve. In IoT, Qualcomm is enhancing its presence in PC and smart glasses markets, with a forecasted revenue growth of 20% in FY2025. In automotive, the company is expanding its share in smart cockpit and advanced driving chips, with projected revenue growth of 34% in FY2025 [3][12]. Financial Forecast and Valuation - The report forecasts Qualcomm's net profits for FY2025-2027 to be $10.819 billion, $11.506 billion, and $12.477 billion, respectively, with growth rates of 6.7%, 6.3%, and 8%. The current price corresponds to a PE of 16X, 15X, and 14X for FY2025-2027, which is below the average PE of comparable companies [5][6][14]. Market Position and Competitive Landscape - Qualcomm is positioned as a leader in the smartphone SoC market, holding a 59% market share in the high-end Android smartphone chip market in 2024. However, the company faces challenges from Apple's self-developed baseband chips, which are expected to significantly reduce Qualcomm's revenue from Apple by 2027 [1][4][11].