Qualcomm

Qualcomm has seen a recovery in its smartphone chip business, and it’s looking to keep up that momentum when it reports its fiscal fourth-quarter results on Wednesday after the close. The company also has two diversification efforts that can drive results in the future. But there are clouds hanging over the proceedings. Analysts are projecting 14% revenue growth on the year to $9.9 billion. Adjusted earnings per share is seen at $2.56, up 27%. Over the past 10 quarters, Qualcomm has beaten sales and EPS estimates eight times. The consensus estimate for first-quarter guidance is $10.6 billion in sales, and EPS of $2.86. Qualcomm’s core market is smartphone chips, which comprise 65% of total revenue in the past year. Analysts see smartphone sales at $6.1 billion, up 12% on the year, similar to last quarter. The last three quarters have shown recovery in this cyclical segment, and Wall Street expects […]

Qualcomm used to look like an edge AI play thanks to its position in handsets and PCs, but since these end markets haven’t yet materialized meaningfully, it isn’t seen benefiting from a replacement cycle or getting a market premium until that happens, KeyBanc Capital Markets says in a note, cutting its rating on the stock to sector weight. Apple is seen ramping up its internal modem in stages in coming years, and this could be tough to overcome, with full impact of the modem coming out representing a $1.55-$1.65 headwind to earnings, KeyBanc adds. In addition, price competition means Qualcomm will start to lose market share to Mediatek in mid-to-low-end smartphones. Qualcomm shares rise 0.3% at $167.42.

Qualcomm has approached Intel about an acquisition, according to a report from The Wall Street Journal on Friday, but the sale looks “logically unlikely” to Benchmark analyst Cody Acree. He says in a research note that Qualcomm has no experience in operating leading-edge chip manufacturing facilities, so any acquisition would be instantly paired with a disposition of Intel’s entire manufacturing operation, which many have called for Intel to do on its own. An Intel offer would probably have to offer at least a 40% to 50% premium to its current trading price to be taken seriously, and given Qualcomm’s market cap and cash balance, any transaction would have to include heavy debt and stock components, the analyst says.

We boost our 12-month target to $260 from $200 on a revised P/E of 22.2x our CY 25 EPS view of $11.68, within peers but above historical. We raise our FY 24 (Sep.) EPS to $10.00 from $9.92, lift FY 25’s to $11.28 from $10.91, and set FY 26’s at $12.75. We think QCOM is poised to be a major beneficiary of the ongoing shift of AI toward the device level over the next 12 months, potentially driving significant upside to our estimates. On the smartphone side, we see a better-than-expected iPhone 16 refresh cycle, content gains in future Samsung devices, and improving trends from China providers all supporting higher growth. In addition, we like QCOM’s growing addressable market opportunity, as Windows-based AI PCs gain traction with QCOM’s NPUs (QCOM previously had no share in PCs) and new IoT/industrial uses emerge over time. Not to be forgotten, we are also

Qualcomm Inc (NASDAQ:QCOM) boasts that its new chips will allow customers to operate their laptops extensively without concerns about battery life. San Diego-based Qualcomm is supplying the semiconductors for Microsoft Corp’s (NASDAQ:MSFT) latest Copilot+ PCs, which incorporate advanced AI features. Both companies highlighted the importance of Qualcomm’s hardware in enabling these AI enhancements while maintaining long battery life, reported Bloomberg. Qualcomm CEO Cristiano Amon remarked at the Computex trade show that the collaboration is groundbreaking. He compared it to the significance of Windows 95. Amon emphasized that Windows laptops powered by Qualcomm’s Snapdragon X Elite systems will boast up to twice the battery life of traditional models and will be over 100 times more power-efficient in running certain AI features. Qualcomm, along with its industry peers, has been working for more than a decade to reduce the PC sector’s reliance on Intel Corp(NASDAQ:INTC) by introducing key components based on Arm

Qualcomm (QCOM)Q2 2024 Earnings CallMay 01, 2024, 4:45 p.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks:   Operator Ladies and gentlemen, thank you for standing by. Welcome to the Qualcomm second quarter fiscal 2024 earnings conference call. At this time, all participants are in listen-only mode. Later, we’ll conduct a question-and-answer session. [Operator instructions] As a reminder, this conference is being recorded, May 1st, 2024. The playback number for today’s call is 877-660-6853. International callers, please dial 201-612-7415. The playback reservation number is 13745532. I would now like to turn the call over to Mauricio Lopez-Hodoyan, vice president of investor relations. Mr. Lopez-Hodoyan, please go ahead. Mauricio Lopez-Hodoyan — Vice President, Investor Relations Thank you, and good afternoon, everyone. Today’s call will include prepared remarks by Cristiano Amon and Akash Palkhiwala. In addition, Alex Rogers will join the question-and-answer session. You can access our earnings release and a slide presentation

J.P. Morgan analyst Samik Chatterjee on Thursday placed Qualcomm shares on the firm’s “Negative Catalyst” watch list, although he maintains his Overweight rating on the stock with a $170 target price. The analyst suggests that the recent optimism about a pickup in phone sales may be a little misplaced. “We are yet to see any significant change in the fundamentals of the smartphone market with the recovery expected to remain muted in 2024.” he writes in a research note. And Chatterjee adds that recent data on the China smartphone market raise concerns about the strength of the expected recovery. Chatterjee says March quarter revenue appears to be tracking to $9.5 billion, above the midpoint of Qualcomm’s guidance range and Street consensus as tracked by FactSet, both at $9.3 billion. But he thinks June quarter guidance will be about in line with the Street at $9.1 billion, which he doesn’t think

Cantor Fitzgerald analyst C J Muse reiterates Qualcomm (NASDAQ:QCOM) with a Neutral and maintains $150 price target.

Qualcomm (NASDAQ: QCOM) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 02/12/2024 -2.68% Cantor Fitzgerald → $150 Reiterates Neutral → Neutral 02/01/2024 7.05% Piper Sandler $140 → $165 Maintains Overweight 02/01/2024 10.29% Rosenblatt $160 → $170 Maintains Buy 02/01/2024 -2.68% Cantor Fitzgerald → $150 Reiterates Neutral → Neutral 02/01/2024 16.78% Keybanc $165 → $180 Maintains Overweight 02/01/2024 3.8% Mizuho $155 → $160 Maintains Buy 02/01/2024 10.29% JP Morgan $173 → $170 Maintains Overweight 02/01/2024 3.8% Citigroup → $160 Downgrades Buy → Neutral 01/23/2024 -2.68% Cantor Fitzgerald → $150 Initiates Coverage On → Neutral 01/19/2024 13.54% Canaccord Genuity $152 → $175 Maintains Buy 01/18/2024 3.8% Rosenblatt → $160 Reiterates Buy → Buy 01/16/2024 0.56% Barclays $140 → $155 Maintains Overweight 01/16/2024 7.05% Keybanc $145 → $165 Maintains Overweight 01/12/2024 3.8% Citigroup → $160 Upgrades Neutral → Buy 12/08/2023 -14.36% Morgan Stanley $119 →

Qualcomm, a maker of mobile processors and 5G wireless chips, will retain its robust modem share for the iPhone this year, says Piper Sandler. On Tuesday, analyst Harsh Kumar reiterated his Overweight rating on Qualcomm stock with his $165 price target. Shares were down 1.8% to $150.30 in midday Tuesday trading, while the S&P 500 and Nasdaq Composite were lower by 1.2% and 1.5%. “Historically, prior to a major global modem launch, the modem maker has to ratify and qualify the modem across the globe,” he wrote. “We have heard no such news about an internal Apple modem. This leads us to strongly believe that just like 2023 iPhone modems, the 2024 iPhone is also likely to be 100% reliant on a QCOM modem.” The analyst noted Qualcomm and Apple signed a new three-year deal last September for phones to be introduced in 2024, 2025, and 2026. He believes the

Qualcomm Sees Q2 2024 Adj. EPS $2.20-$2.40 Vs $2.25 Est., Revenues $8.9B-$9.7B Vs $9.303B Est.

Qualcomm reported fiscal Q1 non-GAAP earnings Wednesday of $2.75 per diluted share, up from $2.37 a year earlier. Analysts polled by Capital IQ expected $2.37. Revenue in the quarter ended Dec. 24 rose to $9.92 billion from $9.46 billion a year earlier. Analysts surveyed by Capital IQ expected $9.52 billion. The company said it expects fiscal Q2 non-GAAP EPS of $2.20 to $2.40 on revenue of $8.9 billion to $9.7 billion. Analysts surveyed by Capital IQ project EPS of $2.24 on revenue of $9.3 billion.