Investment Rating - The report maintains a "Buy" rating for Qualcomm, expecting the stock price to outperform the industry index by over 15% in the next six months [4][14]. Core Insights - Qualcomm's FY24 Q3 results show robust growth, with revenue reaching $28.718 billion, a year-over-year increase of 5.62%, and net profit of $7.222 billion, up 25.77% year-over-year [2][3]. - The company is experiencing steady growth in mobile chip sales and is advancing its "Car + AI" applications, with significant revenue contributions from both automotive and mobile sectors [3]. - Qualcomm's focus on AI and IoT is accelerating, with plans to expand its offerings in XR and industrial IoT, indicating a strong outlook for future growth [3]. Financial Summary - For FY2024, the projected revenue is $38.56 billion, with a year-over-year growth rate of 7.65%. The net profit is expected to be $9.94 billion, reflecting a growth rate of 37.43% [2][4]. - The report forecasts net profits for FY2024, FY2025, and FY2026 to be $9.94 billion, $12.11 billion, and $13.91 billion, respectively, with corresponding P/E ratios of 20, 17, and 14 times [4]. - The company's QCT segment reported revenue of $8.069 billion in Q3, driven by growth in both automotive and mobile businesses [3].

Investment Rating - The report maintains an "Overweight" rating for Qualcomm (QCOM, US) [2][10]. Core Insights - Qualcomm's automotive business growth exceeded expectations, with strong demand in the automotive market and a positive long-term outlook driven by advancements in smart driving and edge AI [1][2]. - The company reported Q3 FY24 revenue of $9.39 billion, a year-on-year increase of 11%, and net profit of $2.129 billion, up 18% year-on-year [2][10]. - The revenue forecast for FY2024, FY2025, and FY2026 has been adjusted to $38.445 billion, $42.964 billion, and $47.135 billion respectively, with net profits projected at $11.281 billion, $13.055 billion, and $14.412 billion [2][10]. Summary by Sections 1. Performance Overview - Q3 FY24 revenue and net profit surpassed expectations, with revenue at $9.39 billion and net profit at $2.129 billion [2][10]. - The QCT segment generated $8.069 billion in revenue, with mobile and automotive segments contributing $5.899 billion and $0.811 billion respectively [2][10]. 2. Segment Performance - The automotive segment saw a remarkable year-on-year growth of 87%, significantly exceeding market expectations [2][10]. - Mobile revenue growth returned to double digits, with a year-on-year increase of over 50% in China OEM revenue [2][10]. 3. Investment Recommendations - The report suggests a target price adjustment to $231, based on a FY2025 Forward P/E of 20X, leading to a target market capitalization of $227 billion [2][10]. - The overall outlook remains positive, with expectations of continued growth driven by the integration of AI across all business lines [2][10].

Core Viewpoint - Qualcomm reported strong fiscal Q3 results but provided weak guidance for the upcoming December quarter, leading to a significant drop in its stock price despite analysts maintaining a positive outlook due to AI developments [1][3]. Financial Performance - Qualcomm's adjusted EPS for Q3 was $2.33, surpassing the expected $2.25 per share [1]. - The company's revenue reached $9.39 billion, exceeding the consensus estimate of $9.22 billion [1]. - Net income for the quarter was $2.13 billion, or $1.88 per share, compared to $1.8 billion, or $1.60 per share, in the same quarter last year [2]. Strategic Developments - CEO Cristiano Amon emphasized the successful execution of Qualcomm's growth and diversification strategy, particularly highlighting the launch of Snapdragon X Series solutions for personal computers [2]. - These new semiconductors are expected to provide superior performance, power efficiency, and personalized AI experiences [2]. Market Outlook - Despite the fiscal Q3 beat, Qualcomm's stock fell over 9% due to management's guidance of mid-single-digit growth for the December quarter, which disappointed investors expecting double-digit growth [3]. - Analysts from Piper Sandler noted that Qualcomm's Q3 results and Q4 guidance exceeded expectations, driven by strength in Android and upcoming growth with modem-only customers [3]. Analyst Sentiment - Piper Sandler raised its price target for Qualcomm from $185 to $205 per share, maintaining an "overweight" rating, while the consensus view is a moderate buy with an average price target of $207.60 per share [4]. - Analysts believe that over half of all PCs will be AI-capable by 2027, positioning Qualcomm favorably in the long term [4].

Core Insights - Qualcomm reported Q3'24 adjusted EPS of $2.33, exceeding consensus estimates of $2.25, and provided a strong Q4'24 forecast of $2.45-2.65/share [1][5] - Revenue growth in Q3'24 was driven by a significant increase in handset revenue (up 87%) and automotive revenue (up 12%) within the QCT segment [1][4] - The company is optimistic about future growth, particularly in the automotive sector, projecting revenue to reach $4 billion by 2026 [4] Financial Performance - Q3'24 adjusted EPS was $2.33, beating estimates, with a strong forecast for Q4'24 of $2.45-2.65/share [1][5] - Total revenue for Q4'24 is expected to be between $9.5-10.3 billion, representing a year-over-year increase of 10-19% [5] - For the full fiscal year 2024, Qualcomm is projected to generate $38.34 billion in revenue and adjusted EPS of $10.06/share [6] Segment Analysis - The handset segment is expected to benefit from premium smartphone sales, with management forecasting low single-digit growth driven by AI-enabled devices [3][7] - The automotive segment saw a remarkable 87% year-over-year revenue growth in Q3'24, with expectations for continued growth due to increased content per vehicle [4] - Industrial IoT is anticipated to experience low double-digit growth, supported by partnerships like the one with Aramco for advanced IoT solutions [4] Market Outlook - Qualcomm's management remains optimistic about the premium smartphone market, despite a flat overall handheld market forecast [3] - The company has extended its licensing agreement with Apple through 2027, which may enhance its position in the AI-enabled device market [3] - Despite challenges in the automotive and smartphone markets, Qualcomm expects to benefit from additional content per device and regional expansion, particularly in China [7] Valuation and Investment Perspective - Qualcomm shares are valued at $202.80/share based on a 21.32x eFY25 price/aEarnings multiple, with an upgrade to a BUY rating [1][11] - The company trades at a lower multiple compared to peers like AMD and Nvidia, which may limit short-term growth potential [9] - The stock is expected to retrace to around $150 before resuming growth, presenting a potential buying opportunity [13]

Core Viewpoint - Qualcomm's investment story remains strong despite recent stock pullback, driven by future growth in Automotive and AI PCs rather than current results [1][6] Financial Performance - For FQ3'24, Qualcomm reported a Non-GAAP EPS of $2.33, beating estimates by $0.07, and revenue of $9.39 billion, reflecting an 11.3% year-over-year increase [2] - Handset sales grew by 12%, while Automotive sales surged by 87% to reach $811 million [2] Market Opportunities - The IoT segment is poised for significant growth with the launch of AI PCs, which began in June [2] - Qualcomm's Copilot+ PCs powered by Snapdragon X series have been launched at 47 retailers across 20 devices, indicating strong market entry [2] - Qualcomm captured 20% of the PC market during the launch week, primarily due to long battery life [2] Future Projections - Qualcomm is guiding for FQ4 revenues potentially exceeding $10 billion, with expectations of substantial growth in Automotive and AI PC segments [2] - The company forecasts nearly $9 billion in combined business from Automotive and AI PCs, with an Automotive order book projected at $30 billion [2] - Automotive sales are expected to reach $2.8 billion in FY24, with projections of $4 billion in 2026 and $5 billion in 2027 [2] Valuation and Analyst Sentiment - Qualcomm's stock is currently trading at only 1.5 times FY25 EPS targets, indicating a low valuation relative to its growth potential [4] - Analysts have set a price target of $235 for Qualcomm, suggesting significant upside potential [5] Investment Strategy - The stock remains undervalued despite strong quarterly performance and positive guidance, presenting a buying opportunity for investors [6]

"我觉得要采取守势，不能再攻了。" 张勇在 0731 中国餐饮创始人大会上说。他演讲主题是 "品牌如何贵 气"。他说对品牌来说，重要的不是店多少、营业额或者利润高低，最关键是品牌是否归零。说这话的 时候，张勇他上身西装，下身西短 —— 因为 "生意不好"。 新荣记张勇：把死看明白了，现在很珍惜生 新荣记张勇：把死看明白了，现在很珍惜生 当一个趋势来临时，不同的人会有不同的应对方式。对新荣记创始人张勇来说，变化发生在去年 7 月。 Temu、Shein 美国广告战刹车 星巴克同店销售 -14%、瑞幸连续利润下滑 "红牛" 争夺战，中国和泰国红牛继续各执一词 芯片股怎么又大涨了？ 关注《晚点财经》并设为星标，第一时间获取每日商业精华。 张勇说自己属于打 "退休报告的人"，也有心把餐厅交给孩子接班，但大儿子更爱咖啡、小儿子 "还在拆 盲盒"。在讲了些对传承的看法后，张勇说 "我嘴上说得好，其实没做好，但我觉得这是一定要去做 的。" 但无论张勇以什么方式、找谁接班， 用他之前对我们讲的来总结 ，大概还是 "我们这种人死了之后灵魂 也在厨房"。而在他 7 月 31 日的演讲里，他也提到了生、死，不过是关于新荣记的。 以 ...

About this content About Josh Lamb After graduating from the University of Kent in the summer of 2022 with a degree in History, Josh joined Proactive later that year as a journalist in the UK editorial team. Josh has reported on a range of areas whilst at Proactive, including energy companies during a time of global crisis, aviation and airlines as the sector recovers from the pandemic, as well as covering economic, social and governance issues. Read more About the publisher Proactive financial news and ...

Wednesday, July 31st, 2024Markets closed higher today, in the wake of the latest Fed meeting. The Federal Open Market Committee (FOMC), followed by Fed Chair Jerome Powell’s press conference this afternoon, gave no surprises to the market. What it did was allow speculation to continue that rate cuts are indeed on the horizon. The Dow closed +99 points, +0.24%, while the Nasdaq zoomed up +451 points, +2.64%. The S&P 500 and small-cap Russell 2000 were +1.58% and +0.51%, respectively.The Fed’s press release f ...

Qualcomm Incorporated (QCOM) reported strong third-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 fiscal 2024 ...

Financial Data and Key Metrics Changes - The company reported non-GAAP revenues of $9.4 billion and non-GAAP earnings per share of $2.33, exceeding the midpoint of guidance [7][17] - Revenues from the chipset business were $8.1 billion, reflecting growth in automotive and IoT sectors [7][17] - Licensing business revenues were $1.3 billion with an EBT margin of 70% [17] Business Line Data and Key Metrics Changes - Automotive revenues reached a record $811 million, with a sequential growth of 34% [17] - IoT revenues increased by 9% sequentially to $1.4 billion, indicating a gradual recovery in the industry [17] - Handset revenues were $5.9 billion, reflecting over 50% year-over-year growth from Chinese OEMs [17] Market Data and Key Metrics Changes - The premium smartphone tier in China grew from 21% to 31% of the market, indicating a significant shift towards higher-priced devices [44] - The overall handset market is expected to remain flat to slightly up in 2024, but the premium tier is expanding [44] Company Strategy and Development Direction - The company is focused on diversifying its revenue streams, particularly in automotive and PC markets, with a goal of reaching $4 billion in automotive revenue by 2026 [25][68] - The Snapdragon Digital Chassis is positioned as a key asset for the automotive industry, integrating AI capabilities for enhanced user experiences [8][10] - The company plans to unveil a dedicated product roadmap for industrial IoT in the coming months [15][68] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the automotive sector's growth, driven by new design wins and the integration of Gen AI use cases [25][26] - The company anticipates that AI will drive competitive differentiation across various sectors, including industrial and automotive [21][68] - The upcoming Snapdragon Summit is expected to reveal advancements in AI capabilities for mobile devices [10] Other Important Information - The company returned $2.3 billion to stockholders during the quarter, including $1.3 billion in stock repurchases and $949 million in dividends [18] - A long-term licensing agreement was signed with Honor, a leading Chinese smartphone OEM, reflecting the company's diversification efforts [16] Q&A Session Summary Question: Automotive revenue growth and future momentum - Management indicated that automotive revenue is expected to continue growing as new vehicles with Qualcomm technology are launched, with a strong pipeline of design wins [24][25] Question: Expectations for the PC market - Management expressed optimism about the PC market, noting that initial sales of Copilot+ PCs have exceeded expectations, with some models sold out [26] Question: Demand for AI smartphones - Management noted a growing demand for smartphones with AI features, particularly in the premium tier, and expects this trend to continue [28][30] Question: Impact of Huawei licensing on revenue - Management acknowledged the revocation of the Huawei export license, which will impact revenues but highlighted growth in other areas such as IoT and automotive [19][31] Question: Guidance for the December quarter - Management expects the December quarter to be seasonally strong, driven by new product launches and a return to typical growth patterns [39][41] Question: Addressable market in compute - Management clarified that the addressable market includes both consumer and enterprise laptops, with a forecast that 50% of PCs sold by 2027 will be AI-capable [60][62] Question: Gross margins outlook - Management indicated that gross margins are expected to remain flat year-over-year, with ongoing diversification efforts impacting the overall margin structure [57]