Qualcomm: A tough start to 2026 in prospect after Q4 earnings beat Proactive uses images sourced from Shutterstock This was not a classic earnings disappointment. Qualcomm Inc (NASDAQ:QCOM, XETRA:QCI) exceeded consensus forecasts on both revenue and adjusted earnings per share. Instead, the market focused almost entirely on guidance, which pointed to a materially weaker upcoming quarter. The gap between results and reaction tells you where the anxiety lies. Qualcomm’s outlook for the current quarter cam ...

President and CEO of Qualcomm Cristiano Amon delivers a speech at the Web Summit at Parque das Nacoes in Lisbon, on November 12, 2024.Qualcomm reported fiscal first-quarter earnings on Wednesday that beat expectations, but the company's forecast came up short because of the global memory shortage. Shares sank following the release.Here's how the chipmaker did versus LSEG consensus estimates:EPS: $3.50, adjusted, versus $3.41 expectedRevenue: $12.25 billion, versus $12.21 billion expectedIn the current quart ...

QUALCOMM Incorporated (NASDAQ:QCOM) is one of the 12 Best 5G Stocks to Invest in According to Hedge Funds. On January 15, Citi reiterated its Neutral rating on QUALCOMM Incorporated (NASDAQ:QCOM) with a price target of $180 following a coverage reshuffle. Citi noted that the stock is currently trading above its historical valuation levels. Earlier, on January 14, RBC Capital analyst Srini Pajjuri initiated coverage of QUALCOMM Incorporated (NASDAQ:QCOM), assigning the stock a Sector Perform rating and se ...

Core Viewpoint - Qualcomm, once a leader in the semiconductor industry, is facing challenges due to a shift in its business model and external market pressures, particularly from rising memory prices impacting demand for its products. Group 1: Historical Context - Qualcomm was a dominant player in the late 1990s, particularly known for its CDMA technology which became essential for 3G networks [1] - The company's stock experienced a remarkable increase of 2619.42% in 1999, although it faced significant declines in the following years during the Internet bust [2] Group 2: Current Business Dynamics - Currently, Qualcomm generates most of its revenue from selling chips and modems for smartphones, but this market has matured, leading to stagnant unit sales and limited revenue growth [3] - There was renewed optimism for Qualcomm due to potential AI-driven upgrades, especially for Apple iPhones, which are a major source of demand [3] Group 3: Market Challenges - A new memory price boom is creating headwinds for Qualcomm, as rising memory costs could dampen demand for PCs, laptops, and smartphones [4][5] - The semiconductor industry is experiencing a memory chip shortage that may persist into 2027, negatively affecting device manufacturers and end users [6] - Surging contract prices for memory are increasing manufacturing costs, which may lead to higher prices for end products, potentially reducing demand for Qualcomm's Snapdragon chips and modems [7]

Shares of tech giant Qualcomm (NASDAQ:QCOM) have stumbled into the new year on the back of a sudden shift in analyst tone. The stock fell nearly 5% to start the week and is now trading back under $170, a sharp reversal from the optimism that had been building late last year, when it looked poised to break through resistance around $184. The catalyst was the first notable analyst update of the year. The team over at Mizuho downgraded its rating on Qualcomm from Outperform to Neutral, while also cutting its p ...

Core Insights - Qualcomm is positioned as an undervalued player in the semiconductor industry, particularly in the context of the ongoing AI revolution and the emergence of new technologies like quantum computing and 6G [2][5][10] Market Context - The current market is characterized as an AI-driven bull market, largely unaffected by economic uncertainties such as government shutdowns and inflation concerns [3][4] - Despite the overall tech sector's growth, Qualcomm's stock has seen a decline of nearly 2% over the past year, indicating it may be underappreciated [6][7] Future Opportunities - Qualcomm is expected to adapt and thrive even as it faces challenges from major customers like Apple, which is developing its own modems [8][11] - The company is investing heavily in the development of 6G technology, which is anticipated to be transformative by 2028, particularly for AI applications that require high data consumption [9][11][12] Investment Perspective - Qualcomm shares are currently trading at a low price-to-earnings ratio of 15.9, suggesting a potential buying opportunity for investors ahead of anticipated technological advancements [12]

Financial Performance - Qualcomm reported fiscal third-quarter earnings that exceeded Wall Street expectations, with net income of $2.66 billion or $2.43 per share, compared to $2.13 billion or $1.88 per share a year ago [2] - The company achieved adjusted earnings per share of $2.77, surpassing the expected $2.71, and revenue of $10.37 billion, slightly above the anticipated $10.35 billion [4] Business Segments - The primary revenue driver for Qualcomm is its smartphone chip business, which generated $6.33 billion in revenue during the quarter, falling short of Wall Street's expectation of $6.44 billion [2] - Qualcomm is facing the potential loss of Apple as a customer for its modem business in the coming years, prompting efforts to diversify its product offerings to include chips for Windows PCs and virtual-reality devices [3] Future Guidance - For the current quarter, Qualcomm expects adjusted earnings of $2.85 per share on revenue of $10.7 billion, which is above analyst expectations of $2.83 per share and $10.35 billion in revenue [1]