Qualcomm(US:QCOM) Waton Financial·2025-08-12 11:55Investment Rating - The investment rating for Qualcomm (QCOM.O) is "Hold" [2] Core Views - Qualcomm's financial performance shows a revenue increase of 10% year-over-year for Q3 2025, with net profit rising by 25% [4][12] - The company faces challenges in its core mobile chip business due to market saturation and competition, while automotive and IoT segments are experiencing strong growth [15][20] Financial Performance - Q3 2025 revenue reached $10.365 billion, up from $9.393 billion in the same quarter last year, with a net profit of $2.666 billion compared to $2.129 billion [4][12] - GAAP diluted EPS was $2.43, a 29% increase from $1.88, while Non-GAAP diluted EPS was $2.77, up 19% from $2.33 [4][12] Business Development - QCT (Qualcomm CDMA Technologies) revenue was $8.993 billion, accounting for 86.8% of total revenue, with an 11% increase from $8.069 billion [5][14] - Mobile chip revenue was $6.328 billion, a 7% increase, while automotive chip revenue reached $0.984 billion, growing by 21% [5][15] - IoT revenue was $1.681 billion, showing a 24% increase [5][16] - QTL (Qualcomm Technology Licensing) revenue was $1.318 billion, a 4% increase from $1.273 billion [5][17] Financial Forecast - The projected revenue for 2025 is approximately 428.58 billion RMB, reflecting a 10% growth [6] - The expected PE ratios for 2025-2027 are 14.44, 14.13, and 13.72 respectively [6][8] Market Environment - The smartphone market is showing signs of saturation, with a slight increase in global shipments, but high-end models are performing better than mid-range [18] - The automotive chip market is expanding rapidly, with significant growth expected in the coming years [19] Competitive Strategy - Qualcomm is diversifying its revenue streams by focusing on automotive and IoT markets to reduce reliance on mobile chip sales [20]