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QUALCOMM Incorporated QCOM shares are trading lower on Wednesday.KeyBanc Capital Markets analyst John Vinh maintained the Overweight rating and $225 price target due to its edge AI positioning in smartphones and PCs and expanding auto sector presence.The analyst had an investor call with QCOM management, who highlighted key points, including the expectation that Samsung Electronics Co., Ltd. SSNLF GS25’s market share will be 70-75% in the first quarter (December), with potential upside if final allocations ...

A potential future trillion-dollar company, Qualcomm (NASDAQ:QCOM) has seen impressive interest this year. The company’s strong performance this year has been driven by its AI-powered Snapdragon processors, which work for PCs, gaming, smartphones, and automotive models. Despite the stock seeing a 20% drop over the past month and concerns regarding the U.S. economy, Qualcomm may rebound due to strong handset sales and an advantage in automotive.Known more as a semiconductor play, Qualcomm also supports diffe ...

QUALCOMM TodayQCOMQUALCOMM$162.89 -1.59 (-0.97%) 52-Week Range$104.33▼$230.63Dividend Yield2.09%P/E Ratio21.89Price Target$210.63Add to WatchlistQualcomm NASDAQ: QCOM is a well-established tech sector company with a long history of success. While investors might remember the company as a powerhouse during the earliest days of the cellphone era, the company has since shifted its focus to become a leader in the artificial intelligence (AI) sector. Qualcomm has steadily diversified its revenue base to mitigate ...

Core Viewpoint - Qualcomm is poised for a recovery driven by the growth of AI-enabled smartphones, despite recent underperformance in the smartphone market [1][2]. Group 1: Recent Performance and Guidance - Qualcomm's quarterly revenue for Q3 fiscal 2024 increased by 11% year over year to $9.4 billion, with adjusted earnings rising 25% to $2.33 per share, surpassing Wall Street expectations [3]. - The company anticipates revenue of $9.9 billion and earnings of $2.55 per share for the current quarter, indicating a year-over-year revenue increase of 14% and a bottom-line growth of 26% [4]. - Despite positive results, Qualcomm's stock fell over 5% after the earnings release due to concerns about slow recovery in the smartphone market [5]. Group 2: Market Trends and AI Impact - The overall smartphone market is expected to grow at a "flattish to low single digits," but premium smartphones and AI-enabled devices are experiencing faster growth [5][6]. - Shipments of generative-AI-enabled smartphones are projected to quadruple from 2024 to 2027, with these devices expected to account for 43% of global smartphone shipments by 2027, up from 11% this year [6]. Group 3: Future Growth Prospects - Qualcomm is projected to end the current fiscal year with revenue of $38.6 billion, an 8% increase from the previous year, with fiscal 2025 revenue growth expected to exceed 10% [7]. - If Qualcomm achieves a 15% annual earnings growth rate over the next three years, its earnings per share could rise to $15, potentially doubling its current stock price to $345 [8]. - The current price-to-earnings ratio of Qualcomm suggests it is undervalued compared to the Nasdaq-100, presenting a solid investment opportunity [8].

Core Viewpoint - Qualcomm (QCOM) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook for its earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Outlook - The Zacks rating upgrade reflects an optimistic earnings outlook for Qualcomm, which could lead to increased buying pressure and a rise in stock price [2]. - Qualcomm is projected to earn $10.01 per share for the fiscal year ending September 2024, representing a year-over-year increase of 18.7% [5]. Earnings Estimate Revisions - Analysts have been consistently raising their earnings estimates for Qualcomm, with the Zacks Consensus Estimate increasing by 2% over the past three months [5]. - The correlation between earnings estimate revisions and near-term stock movements is strong, making it beneficial for investors to track these revisions [4]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [4]. - Qualcomm's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [7].

As you likely know, AI stocks have been pulling back in recent weeks. Qualcomm (NASDAQ:QCOM) is no exception. During this time frame, Qualcomm stock has fallen by around 20%, from around $200 to around $160 per share.With broad sentiment for the AI growth trend shifting to bearish, not even the release of solid quarterly results has been enough to fight the trend. Worse yet, with this reversal, Qualcomm skeptics are coming out of the woodwork. Once again, they are laying out the bear case for this mobile-fo ...

Investment Rating - The report maintains a "Buy" rating for Qualcomm (QCOM.O) [1][3] Core Insights - Qualcomm's FY2024 Q3 revenue reached $9.39 billion, a year-over-year increase of 11.3%, with a gross margin of 55.6%, up 0.37 percentage points from the previous year. GAAP net profit was $2.13 billion, up 18% year-over-year, while Non-GAAP net profit was $2.65 billion, reflecting a 25.8% increase [2][3] - The mobile business showed significant growth, and the PC chip sales have commenced. The QCT (semiconductor) segment generated $8.07 billion in revenue, a 12.5% year-over-year increase, with an EBT of $2.18 billion and a pre-tax profit margin of 27%, up 2.7 percentage points year-over-year [2] - The automotive segment saw remarkable growth, with revenue of $810 million, a year-over-year increase of 86.9%. Qualcomm secured over 10 new design wins with global automotive manufacturers [2] Summary by Sections Financial Performance - FY2024 Q3 revenue: $9.39 billion, up 11.3% YoY - Gross margin: 55.6%, up 0.37 percentage points YoY - GAAP net profit: $2.13 billion, up 18% YoY - Non-GAAP net profit: $2.65 billion, up 25.8% YoY [2] Business Segments - QCT revenue: $8.07 billion, up 12.5% YoY - Mobile business revenue: $5.9 billion, up 12.3% YoY - IoT revenue: $1.36 billion, down 8.5% YoY - Automotive revenue: $810 million, up 86.9% YoY [2] Future Guidance - For FY24Q4, Qualcomm expects overall revenue to be between $9.5 billion and $10.3 billion, with a midpoint growth of 14.6% YoY. QCT revenue is projected to be between $8.1 billion and $8.7 billion, with a midpoint growth of 13.9% YoY [3] - Adjusted EPS for FY24Q4 is expected to be between $2.45 and $2.65 [3] Profitability Forecast - Projected GAAP/Non-GAAP net profit CAGR over the next three years is 25.4% and 16.8%, respectively [3]

Investment Rating - The report maintains a "Buy" rating for Qualcomm (QCOM.US) with a target price of $240.7, indicating a potential upside of 51% from the current price of $159.3 [1][2][3]. Core Insights - Qualcomm's FY3Q24 performance aligns with market expectations, and the guidance for FY4Q24 is slightly above market forecasts. The company is expected to benefit significantly from the expansion of edge AI applications, particularly in smartphones, electric vehicles, and AI PCs [1][2]. - The report highlights that the average selling price of smartphone chips is expected to rise due to increased demand for high-end models in China. Additionally, the penetration of smart cockpit and autonomous driving technologies in electric vehicles is projected to contribute to new revenue streams, with automotive revenue expected to reach $4 billion by FY2026 [1][2]. - The next-generation Snapdragon 8 series chips will utilize Qualcomm's proprietary Oryon CPU platform, enhancing the company's autonomy in optimization [1][2]. Financial Performance Summary - For FY3Q24, Qualcomm reported revenues of $9.393 billion, a year-over-year increase of 11%, with a gross margin of 55.6% [6][7]. - The guidance for FY4Q24 anticipates revenue growth of 8% quarter-over-quarter and 15% year-over-year, with expectations of low single-digit growth in mobile business and low double-digit growth in IoT [1][6]. - The projected revenues for FY2024 are $38.687 billion, with a net profit of $9.502 billion, reflecting a 31% increase year-over-year [5][6]. Valuation - The report employs a DCF valuation method, assuming a growth rate of 12% for FY2029-FY2033 and a perpetual growth rate of 3%, with a WACC of 11.2%. The target price of $240.7 corresponds to a FY2024 PE of 28.4x [2][3].

Investment Rating - The report maintains a positive outlook on Qualcomm, projecting revenue growth and strong performance in various segments, particularly in automotive and mobile chip businesses [2][19][29]. Core Insights - Qualcomm's Q2 FY2024 performance exceeded expectations, driven by smartphone chip sales, with revenue reaching $9.4 billion, a year-over-year increase of 11% [3][7]. - The automotive chip segment achieved record revenue for four consecutive quarters, with a 87% year-over-year increase, and the company anticipates automotive revenue to reach $4 billion by 2026 [3][11][30]. - The IoT business showed signs of recovery, with revenue of $1.4 billion, down 8% year-over-year, but expected to benefit from AI PC and XR growth [3][19][27]. - Qualcomm expects Q3 FY2024 revenue to be between $9.5 billion and $10.3 billion, with adjusted EPS projected at $2.45 to $2.65, reflecting a year-over-year increase of 25% to 35% [19][21]. Revenue and Profitability - In Q2 FY2024, Qualcomm reported revenue of $9.4 billion and net income of $2.13 billion, with an EPS of $1.88, marking an 18% increase year-over-year [3][7][28]. - The QCT segment (Qualcomm CDMA Technologies) generated $8.1 billion in revenue, with a gross margin of 27%, driven by growth in automotive and IoT sectors [9][28]. - The QTL segment (Qualcomm Technology Licensing) reported revenue of $1.3 billion, with a gross margin of 70%, aligning with expectations [12][28]. Business Segment Performance - The smartphone business generated $5.9 billion in revenue, reflecting a 12% year-over-year increase, supported by strong sales in high-end Android devices [10][28]. - The automotive business reached $811 million in revenue, marking a significant increase and showcasing Qualcomm's commitment to this sector [11][30]. - The IoT segment's revenue was $1.4 billion, indicating a slowdown but with expectations for recovery driven by AI applications [3][19][27]. Future Guidance - Qualcomm anticipates Q3 FY2024 revenue between $9.5 billion and $10.3 billion, with adjusted EPS of $2.45 to $2.65, indicating strong growth prospects [19][21]. - The company projects QCT revenue for Q3 FY2024 to be between $8.1 billion and $8.7 billion, with growth in mobile and IoT sectors expected [20][29]. - For the fiscal year 2024, Qualcomm expects a revenue increase of approximately 50% and an operating expense of around $2.2 billion [23][29].