Qualcomm(US:QCOM) Guotai Junan Securities·2024-08-04 08:01Investment 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].