Microchip and Qualcomm logo displayed on a phone screen are seen in this multiple exposure illustration photo taken in Krakow, Poland on April 10, 2023.Qualcomm shares fell on Friday after Chinese regulators said it would investigate the American tech giant's acquisition of chip firm Autotalks, ramping up tensions between the U.S. and China ahead of key meetings between the country's leaders this month.Shares were last around 3% lower in premarket trading.China's State Administration of Market Regulation (S ...

QUALCOMM Incorporated (NASDAQ:QCOM) is one of the high-growth semiconductor stocks that are profitable in 2025. On October 6, reports emerged indicating that the company faces an antitrust lawsuit in the UK over claims that it abused its dominant position in the supply of chipsets for smartphones. QUALCOMM Incorporated (QCOM) Sued Over Antitrust Violation on Smartphone Chips in the UK Kārlis Dambrāns/Flickr A UK consumer group alleges that the company has breached UK competition laws by exploiting its d ...

Qualcomm is fighting a 480 million-pound ($646.8 million) London lawsuit brought on behalf of smartphone owners, which alleges the chipmaker has abused its dominant position to force Apple and Samsung to pay inflated royalties. ...

Core Insights - Qualcomm has a strong cash flow generation, producing $11.5 billion in free cash flow, which is approximately 5.5% of its $200 billion market capitalization [3] - The company is experiencing solid revenue growth, with a 16% increase over the past year and an expected 12% growth in FY'25, driven by the smartphone chipset industry and rising sales in IoT and automotive sectors [4][5] - Qualcomm is diversifying its revenue streams, aiming for $8 billion in automotive semiconductor revenue by FY'29 and entering the PC market with its Snapdragon X2 Elite chip [4][5] - The company is positioned to capitalize on the AI market through its acquisition of Alphawave Semi, enhancing its capabilities in energy-efficient AI CPUs [5][6] - Qualcomm's revenue is projected to reach $67 billion by 2028 if growth accelerates at an annual rate of 15%, with potential net income of around $18 billion [6][7] - The current valuation of Qualcomm at approximately 16 times earnings presents a significant upside potential, with a target share price of $360, more than double its current value [7][8] Financial Performance - Qualcomm's cash flow margin stands at 29.3%, resulting in nearly $13 billion of operating cash flow over the past year [3] - The company has a robust net income of close to $12 billion, reflecting a net margin of approximately 27% [3] - The balance sheet remains strong, with debt comprising less than 8% of market capitalization [3] Growth Catalysts - The automotive and IoT sectors combined generated $2.7 billion in revenue, marking a 23% year-over-year increase [4] - Qualcomm's strategy includes reducing dependence on smartphones while increasing exposure to high-growth markets such as PCs, AI, and automotive [4][5] - The transition in the PC sector towards ARM-based architectures presents an opportunity for Qualcomm to compete effectively [5] Shareholder Value - Continuous share buybacks have reduced the share count by nearly 30% over the last ten years, enhancing per-share earnings [3][8] - The combination of strong cash flow, growth initiatives, and share buybacks positions Qualcomm for sustained shareholder value creation [8]

Group 1 - ARM Holdings PLC is positioned as a strong player in the AI boom, with its energy-efficient designs making it essential for chipmakers and hyperscalers [1][2][3] - The company operates a capital-light, margin-rich business model by licensing designs rather than selling chips directly, which could lead to significant growth as the industry shifts towards AI accelerators and edge computing [2][3] - ARM's potential to break out of its "smartphone IP" narrative and reprice towards the AI infrastructure tier is highlighted, similar to Nvidia's success in the GPU market [3][4] Group 2 - Retail investors are increasingly interested in ARM as a middle ground investment, offering global brand recognition and the potential for explosive upside with AI adoption [4] - The company must demonstrate that its AI revenue streams can surpass its traditional mobile business, which is a critical factor for its future valuation [5]

We recently published Top 10 Analyst Calls on Trending Stocks You Shouldn’t Miss. QUALCOMM Incorporated (NASDAQ:QCOM) is one of the major analyst calls. Stacy Rasgon, Bernstein senior U.S. semiconductor analyst, explained in a program on CNBC in June why he was bullish on Qualcomm. At the time, QCOM was among the analyst’s best stock ideas. Here is what he said at the time: “I’m pretty positive on the continued prospect at least for content growth if not necessarily for unit growth in smartphones. person ...

Core Viewpoint - Qualcomm is transitioning from a smartphone chipmaker to a diversified technology company focusing on AI, automotive, and IoT, with significant growth potential and attractive dividend offerings [1] Group 1: Company Expansion - Qualcomm is making bold acquisitions, such as Alphawave, to enhance its capabilities in AI, automotive, and IoT sectors [1] - Analysts project a 41% upside for Qualcomm, indicating strong growth potential that may be overlooked by investors [1] Group 2: Market Position - The company is positioning itself as one of the biggest growth stories in the tech industry, moving beyond its traditional smartphone chipmaking roots [1] - Qualcomm's strategy reflects a broader trend in the tech sector where companies are diversifying their portfolios to capture new market opportunities [1]

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]

Group 1 - Qualcomm is transitioning from being solely a smartphone chipmaker to becoming a key player in embedded intelligence [1] - The company is facing increased competition in mobile connectivity, particularly with Apple's announcement of its proprietary 5G technology [1] Group 2 - Qualcomm's growth strategy includes expanding its presence in various sectors beyond mobile devices [1]

Group 1 - Qualcomm is undergoing a significant transformation from being a leader in smartphone chips to diversifying into high-growth segments such as smart cars, IoT, and artificial intelligence at the edge [1]