Core Viewpoint - Qualcomm is expected to report a year-over-year increase in earnings and revenues for the quarter ended December 2024, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - The upcoming earnings report is anticipated to be released on February 5, 2025, with a consensus EPS estimate of $2.93, reflecting a +6.6% change year-over-year, and revenues projected at $10.92 billion, up 9.9% from the previous year [3][2]. Estimate Revisions - The consensus EPS estimate has been revised 0.93% higher in the last 30 days, indicating a collective reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for Qualcomm is higher than the consensus estimate, resulting in a positive Earnings ESP of +3.34%, indicating a likelihood of beating the consensus EPS estimate [10][11]. Historical Performance - Qualcomm has a history of beating consensus EPS estimates, having done so in the last four quarters, with a recent surprise of +5.08% when it reported earnings of $2.69 per share against an expectation of $2.56 [12][13]. Investment Considerations - While a positive earnings surprise is a strong predictor of stock performance, other factors may also influence stock movement, making it essential to consider the broader context [14][16].

Amid the race to compete in artificial intelligence (AI), investors interested in this sector have tended to ignore Qualcomm (QCOM 0.22%). Part of the reason for this is that the longtime leader in smartphone chipsets is at a bit of a crossroads regarding its future as it seeks to diversify its product offerings away from smartphones. Additionally, the struggles Apple is seeing selling AI-enabled phones and the fact that Apple appears ready to drop Qualcomm as a chipset supplier have led some investors to s ...

Core Viewpoint - Qualcomm's stock performance has shown resilience, with a notable appreciation over the past month, outperforming both the Computer and Technology sector and the S&P 500 index [1][2]. Financial Performance Expectations - Qualcomm is set to announce its earnings on February 5, 2025, with an expected EPS of $2.93, reflecting a 6.55% increase year-over-year. Revenue is anticipated to reach $10.92 billion, indicating a 9.9% rise from the same quarter last year [2]. - For the full year, analysts project earnings of $11.21 per share and revenue of $42.3 billion, representing increases of 9.69% and 8.57% respectively compared to the previous year [3]. Analyst Estimates and Market Sentiment - Recent adjustments to analyst estimates for Qualcomm suggest a positive outlook, with the Zacks Consensus EPS estimate rising by 0.44% in the past month. Qualcomm currently holds a Zacks Rank of 2 (Buy) [3][5]. - The Zacks Rank system has a strong historical performance, with 1 ranked stocks yielding an average annual return of +25% since 1988 [5]. Valuation Metrics - Qualcomm's Forward P/E ratio stands at 15.27, which is lower than the industry average of 15.62, indicating a potential valuation opportunity [5]. - The company has a PEG ratio of 2.32, which is favorable compared to the Wireless Equipment industry's average PEG ratio of 3.41 [6]. Industry Context - The Wireless Equipment industry, part of the broader Computer and Technology sector, is currently ranked 83 in the Zacks Industry Rank, placing it in the top 34% of over 250 industries [6][7].

Core Viewpoint - The article discusses the investment position of Parkev Tatevosian, CFA, and highlights the involvement of The Motley Fool in recommending Qualcomm, indicating a potential investment opportunity in the company [1]. Group 1 - Parkev Tatevosian has no position in any of the stocks mentioned, which suggests an impartial analysis of the market [1]. - The Motley Fool has positions in and recommends Qualcomm, indicating a positive outlook on the company's future performance [1]. - The Motley Fool has a disclosure policy, ensuring transparency regarding its investment recommendations [1].

Core Insights - Qualcomm Inc (QCOM) has received an Overweight rating from JP Morgan analyst Samik Chatterjee, highlighting its strong position in the mobile processor market [1] - The recent launch of Samsung's flagship smartphone S25, which utilizes Snapdragon chipsets across all variants, signifies a share gain for Qualcomm compared to the previous S24 model [1][4] Market Position and Revenue Impact - Qualcomm's regained share at Samsung emphasizes its technological leadership in mobile processors, with expansion into automotive and IoT markets [2] - Chatterjee estimates that the incremental revenue opportunity from the share gain amounts to $2 billion within the Handset Total Addressable Market (TAM), contributing approximately $0.63 to earnings per share (EPS), which is about 5% of the fiscal 2025E EPS consensus [2][4] Shipment Estimates - The incremental share gain with the S25 is estimated to be around 12 million units, with prior-generation S24 shipments projected at nearly 40 million units in 2024, including 20 million for high-end Ultra models [3][4] - Qualcomm's share in the previous flagship S24 was approximately 70%, which is expected to increase to 100% in the S25, leading to an estimated incremental revenue of $2 billion [4] Stock Performance and Investor Sentiment - Qualcomm has been placed on Positive Catalyst Watch for the upcoming earnings report, with expected share gains at Samsung as a key driver [5] - The stock has surged 13% over the last 12 months, although it was down 0.41% to $173.64 at the last check [5]

Group 1: Qualcomm and Samsung Collaboration - Qualcomm Technologies, Inc. has partnered with Samsung to deploy the Snapdragon 8 Elite Mobile Platform in the Galaxy S25 series, which includes S25, S25 Plus, and S25 Ultra devices, setting a new benchmark for innovation [1] - The Snapdragon 8 Elite features advanced components such as the Qualcomm Oryon CPU, Hexagon NPU, and Adreno GPU, enhancing performance and efficiency while supporting on-device AI capabilities [2] Group 2: Advanced Features and Connectivity - The Snapdragon 8 Elite includes the Qualcomm FastConnect 7800 Mobile Connectivity system and Snapdragon X80 5G Modem-RF System, ensuring high-speed 5G and WiFi 7 connectivity [3] - The Galaxy S25 series is the first commercial device to feature Snapdragon Satellite, allowing users to send and receive messages on narrowband non-terrestrial networks [3] - Qualcomm Spectra ISP with Spatio-Temporal Filter enhances low-light video capture while optimizing power consumption [3] Group 3: Market Implications and Future Growth - The collaboration with Samsung highlights Qualcomm's growing influence in the AI chip market, potentially attracting interest from other major smartphone manufacturers [5] - Qualcomm is focusing on developing advanced chipsets for AI PCs to diversify its offerings and enhance resilience against smartphone market volatility, which is favorable for long-term growth [6] Group 4: Stock Performance - Qualcomm currently holds a Zacks Rank 2 (Buy), with shares increasing by 10.3% over the past year, compared to the industry's growth of 28.9% [7]

Company Overview - Qualcomm Incorporated (QCOM) has experienced significant valuation growth over the past year, reaching an all-time high. The company, established in 1985 and headquartered in San Diego, CA, specializes in manufacturing semiconductors, software, and services related to wireless technology [1] Industry Position - Qualcomm holds a Zacks Rank 2 (Buy) and is part of the Zacks Wireless Equipment industry. Its peers, Ericsson (ERIC) and Motorola Solutions, Inc. (MSI), currently have a Zacks Rank 3 (Hold). Over the past month, QCOM's stock has risen by 11.4%, outperforming ERIC's 8.6% and MSI's 0.4% growth [2] Growth Outlook - The company has a positive long-term growth outlook in artificial intelligence (AI), Internet of Things (IoT), and 5G technologies. Recent partnerships, including one with Aramco and Saudi Arabia's RDIA for the Design in Saudi Arabia (DISA) program, aim to assist startups in utilizing AI and IoT for industrial applications. Additionally, a collaboration with MapMyIndia to develop localized offerings for smart, connected vehicles is also noteworthy [3] Financial Performance - Qualcomm has shown steady growth over the last five years, with a share price increase of 77.6%. In the fiscal fourth quarter, the company reported earnings of $2.69 per share, exceeding the Zacks Consensus Estimate of $2.56. Revenues for the quarter ended September 2024 were $10.24 billion, surpassing the consensus estimate by 3.49% [4] Valuation Metrics - From a valuation perspective, Qualcomm appears attractive with a forward P/E ratio of 14.98, significantly lower than the S&P 500's P/E of 21.87, suggesting potential undervaluation. The upcoming earnings release on February 5, 2025, is expected to show earnings of $2.93 per share, reflecting a 6.55% increase year-over-year, with revenue forecasts of $10.89 billion indicating a 9.61% growth from the previous year [5] Investment Consideration - Qualcomm is currently valued at around $170, with a very positive outlook that may drive further growth. The Wireless Equipment industry ranks in the top 24% of all industries within the Zacks universe, which is an important factor for investment decisions [6]

Subscription Service - Beyond the Wall Investing offers a subscription service providing access to high-quality analysis of Wall Street buying and selling ideas [1] - The service includes a free trial and a 10% discount for new subscribers [1] Analyst Background - Daniel Sereda is the chief investment analyst at a family office with investments across continents and diverse asset classes [1] - He specializes in filtering vast amounts of data to extract critical investment ideas [1] - Sereda runs the investing group Beyond the Wall Investing, which provides institutional-level market analysis [1] Disclosure - The analyst has no current stock, option, or derivative positions in the mentioned companies but may initiate a long position in QCOM within the next 72 hours [1] - The article expresses the analyst's personal opinions and is not compensated by any company mentioned [1]

Company Overview - Qualcomm is expanding its focus beyond smartphones into areas such as cars, Internet of Things (IoT), and artificial intelligence (AI) [1] - The company is prioritizing on-device AI, where low-latency processing is critical, moving away from solely high-end phone chips [1] Industry Trends - The shift towards on-device AI highlights the growing importance of low-latency processing in the tech industry [1] - The integration of AI into various sectors, including IoT and automotive, reflects broader industry trends towards AI-driven innovation [1] Expertise and Certifications - The author holds the "AWS Certified AI Practitioner Early Adopter" certification and is pursuing advanced AWS machine learning certifications [1] - The author has deep knowledge of generative AI systems, machine learning algorithms, model training, and deployment, contributing to their expertise in AI and machine learning [1]

Group 1: Company Performance - Qualcomm's stock closed at $159.53, reflecting a +1.53% increase, outperforming the S&P 500's gain of 0.12% on the same day [1] - Over the past month, Qualcomm shares have decreased by 0.48%, which is better than the Computer and Technology sector's decline of 3.73% and the S&P 500's drop of 3.45% [1] Group 2: Upcoming Earnings - Qualcomm is set to release its earnings on February 5, 2025, with an expected EPS of $2.92, indicating a 6.18% growth year-over-year [2] - The consensus estimate for revenue is projected at $10.89 billion, reflecting a 9.61% increase compared to the same quarter last year [2] Group 3: Annual Estimates - For the annual period, earnings are anticipated to be $11.14 per share, with revenue expected to reach $42.19 billion, representing increases of +9% and +8.29% respectively from the previous year [3] Group 4: Analyst Estimates and Rankings - Recent modifications to analyst estimates for Qualcomm are crucial as they indicate short-term business trends, with positive revisions suggesting a favorable business outlook [3] - Qualcomm currently holds a Zacks Rank of 2 (Buy), with no changes in the Zacks Consensus EPS estimate over the past month [5] Group 5: Valuation Metrics - Qualcomm has a Forward P/E ratio of 14.1, which is lower than the industry's average Forward P/E of 16, indicating a valuation discount [6] - The company has a PEG ratio of 2.15, compared to the Wireless Equipment industry's average PEG ratio of 3.1 [6] Group 6: Industry Context - The Wireless Equipment industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 17, placing it in the top 7% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]