Investment Rating - The report maintains a "Buy" rating for Qualcomm (QCOM-US) with a target price of $191, based on strong demand in the high-end smartphone and automotive markets, as well as growth potential from edge AI [2][4]. Core Insights - Qualcomm's Q2 FY24 performance exceeded expectations, with GAAP revenue of $9.39 billion, up 1% year-over-year, and net profit of $2.33 billion, up 25% year-over-year. The company expects Q3 FY24 revenue to be between $8.8 billion and $9.6 billion [2][12]. - The strong performance in the smartphone segment is driven by structural demand, particularly in the high-end Android market, with a notable 40% year-over-year revenue growth from Chinese OEMs in FY24 H1. The automotive sector also shows robust growth, with a 35% year-over-year increase in revenue [2][12]. - The report highlights the potential of edge AI to enhance revenue growth, with upcoming Snapdragon XElite and XPlus platforms expected to provide AI computing solutions that could increase average selling prices and market share in high-end devices [2][12]. Summary by Sections 1. Performance Overview - Qualcomm's Q2 FY24 revenue and net profit surpassed market expectations, with revenue of $9.39 billion and net profit of $2.33 billion. The company anticipates Q3 FY24 revenue to align with market expectations [2][12]. 2. Segment Performance - The QCT segment generated $8.03 billion, with smartphone revenue at $6.18 billion (77% of total revenue) and automotive revenue at $600 million, reflecting a 35% year-over-year increase [2][11]. 3. Investment Recommendations - The report adjusts revenue forecasts for FY2024E/FY2025E/FY2026E to $38.25 billion, $42.75 billion, and $45.84 billion, respectively, with net profit estimates of $11.97 billion, $15.97 billion, and $18.33 billion. The expected growth rates are 7%, 12%, and 7% for revenue, and 26%, 33%, and 15% for net profit [2][12].

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This Nvidia peer is benefiting from the growing adoption of AI-enabled smartphones.Nvidia (NVDA -0.16%) stock has been on a tear on the stock market over the past year and a half, which is not surprising -- the company has been delivering phenomenal earnings and revenue growth thanks to the booming demand for its artificial intelligence (AI) chips.Nvidia commands a dominant position in the AI chip market with a market share of more than 90%. It is leagues ahead of rivals such as Intel and AMD, which are sti ...

BEIJING, CHINA - SEPTEMBER 02: People visit the Qualcomm booth during the 2023 China International ... [+] Fair for Trade Services (CIFTIS) at Shougang Park on September 2, 2023 in Beijing, China. (Photo by VCG/VCG via Getty Images)VCG via Getty ImagesOur Theme of Apple Component Supplier Stocks, which includes a diverse set of companies that supply components for Apple’s Apple devices, has remained roughly flat year to date in 2024, underperforming the S&P 500 which remains up by 9% and compared to Apple s ...

[ 2T 0a 2b 4l 年e_S 0t 5o 月ckI 0n 5f 日o] 买入 （维持） 证券研究报告•2024财年二季度财报点评 当前价： 179.64美元 高通（QCOM.O） 半导体 目标价： ——美元 业绩持续回升，积极推动混合 AI 战略 投资要点 西南证券研究发展中心 [T ab事le件_S：u公mm司aFryY]2 024Q2（即自然年2024Q1）实现营收93.9亿美元，同比增长 [分Ta析bl师e_：Au王th湘or杰] 1.2%；毛利率56.3%，同比提升1.1pp；GAAP净利润23.3亿美元，同比增长 执业证号：S1250521120002 36.5%；Non-GAAP净利润 27.6亿美元，同比增长14%。公司连续两个季度实 电话：0755-26671517 现业绩正向增长。 邮箱：wxj@swsc.com.cn  中国品牌客户推动手机业务回升，汽车业务增长加速。公司FY24Q1 QCT（半 分析师：杨镇宇 导体）分部收入80.3亿美元，同比增长1.1%；EBT为22.9亿美元，税前利润 执业证号：S1250517090003 率 28.5%，同比提升2pp。其中：1）手机 ...

Core Viewpoint - Qualcomm's stock surged over 10% following strong fiscal second-quarter results that exceeded expectations, alongside a dividend increase announcement [1][3]. Financial Performance - For the three months ending March 31, Qualcomm reported a revenue increase of 1.3% year-over-year to $9.4 billion and earnings per share (EPS) rose 13.5% to $2.44 [1]. - Analysts had anticipated revenue of $9.3 billion and EPS of $2.32, indicating Qualcomm's performance significantly outperformed these expectations [3]. Future Outlook - Qualcomm provided a positive outlook for its fiscal third quarter, projecting revenue between $8.8 billion and $9.6 billion and EPS between $2.15 and $2.35, surpassing Wall Street's expectations of $9.1 billion in revenue and $2.17 in EPS [3]. Dividend Increase - The company announced a 6.3% increase in its quarterly dividend to 85 cents per share, resulting in an annualized dividend of $3.40 per share, marking 21 consecutive years of dividend hikes [4][5]. Analyst Sentiment - The consensus target price for Qualcomm stock is $182.62, with a recommendation of "Buy" from analysts [6]. - Susquehanna Financial Group has a more bullish outlook, setting a price target of $205, suggesting an implied upside of approximately 14% from current levels [6].

Qualcomm Incorporated (QCOM) reported relatively healthy second-quarter fiscal 2024 results, with the bottom and top lines beating the respective Zacks Consensus Estimate, driven by healthy demand trends in Android handsets and automotive businesses. Both metrics improved year over year, led by the strength of the business model, revenue diversification and the ability to respond proactively to the evolving market scenario.Management expects a steady improvement in the demand trajectory in the remainder of ...

Key TakeawaysQualcomm shares jumped more than 4% in extended trading on Wednesday after the mobile phone chipmaker issued a better-than-expected current-quarter outlook amid growing demand for AI-equipped premium smartphones.The company reported a 40% jump in quarterly revenue from Chinese phone manufacturers.Monitor how the Qualcomm share price responds to two twin peaks that formed in March and April around $176. Qualcomm (QCOM) shares jumped more than 4% in extended Wednesday after the mobile phone chip ...

Qualcomm (QCOM) reported $9.39 billion in revenue for the quarter ended March 2024, representing a year-over-year increase of 1.2%. EPS of $2.44 for the same period compares to $2.15 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $9.32 billion, representing a surprise of +0.74%. The company delivered an EPS surprise of +6.09%, with the consensus EPS estimate being $2.30.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street e ...

Financial Data and Key Metrics Changes - In Fiscal Q2, Qualcomm reported non-GAAP revenues of $9.4 billion and non-GAAP earnings per share of $2.44, exceeding the high end of guidance [7][14] - The chipset business generated revenues of $8 billion, driven by strong demand for Android smartphones and automotive [7][14] - Licensing business revenues were $1.3 billion, with an EBT margin of 71% [14] Business Line Data and Key Metrics Changes - QCT (Qualcomm CDMA Technologies) revenues were $8 billion, with an EBT margin of 29%, reflecting strength in handset and automotive sectors [14] - QCT handset revenues reached $6.2 billion, benefiting from flagship Android smartphone launches [14] - QCT IoT revenues increased by 9% sequentially to $1.2 billion, slightly better than expectations [14] - Automotive revenues grew by 35% year-over-year, indicating a record quarter for QCT automotive [14] Market Data and Key Metrics Changes - Qualcomm's design win pipeline in automotive has increased to approximately $45 billion, up from $30 billion in September 2022 [9][18] - The company noted a greater than 40% year-over-year increase in revenues from Chinese OEMs in the first half of fiscal 2024 [18] Company Strategy and Development Direction - Qualcomm is focusing on intelligent computing across various sectors, including smartphones, PCs, XR devices, and automotive [8][13] - The launch of the Qualcomm AI Hub aims to support the commercialization of on-device AI applications [8] - The company is optimistic about growth opportunities in automotive, IoT, and AI-driven devices [13][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of the premium smartphone market in China, driven by an increase in high-tier device sales [24][25] - The company anticipates a seasonal decline in QCT handset revenues in the upcoming quarter, but expects growth in automotive revenues [16][27] - Management highlighted the importance of AI in driving demand for new devices and enhancing user experience [45][56] Other Important Information - Qualcomm announced an increase in quarterly dividends from $0.80 to $0.85 per share [15] - The company completed the divestiture of its restrained control system business related to the acquisition of Veoneer [15] Q&A Session Summary Question: Inquiry about the impact of AI on handset modem and RF architecture - Management noted that the modem's importance is increasing with AI applications, emphasizing their competitive RF front end portfolio [20][22] Question: Details on the performance in the China market - Management indicated that the premium and high-tier mix is improving in China, with strong demand for devices powered by Snapdragon [24][25] Question: Sustainability of automotive revenue growth - Management confirmed that the design win pipeline is translating into revenue, with a target of over $4 billion in automotive revenue by fiscal 2026 [27] Question: Outlook for the PC segment - Management stated that significant PC volume is not expected in the June quarter, with material growth anticipated in fiscal 2025 [35][36] Question: Revenue expectations from Huawei - Management clarified that no further product revenue from Huawei is expected beyond the end of the calendar year, as they transition to 5G [39] Question: QTL business recovery - Management explained that the QTL business is driven by market size and ASPs, with a disconnect between QCT and QTL performance [42] Question: AI's impact on semiconductor pricing - Management highlighted that AI is driving increased content in devices, leading to a richer mix and potential for higher ASPs [54][56] Question: QCT gross margins outlook - Management indicated that QCT gross margins have held flat, with no fundamental changes expected in the margin framework going forward [58] Question: Growth expectations for automotive revenue - Management suggested a reasonable growth slope towards the $4 billion target, without providing specific quarter guidance [60]