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3 months ago
Analyst: Plenty of Tailwinds Blowing for Chip Stock
By: Schaeffer's Investment Research | January 12, 2024
• Calls were the popular choice leading up to today's bull note
The shares of semiconductor concern Qualcomm, Inc. (NASDAQ:QCOM) are 1.6% higher in premarket trading, pacing to open up above $141 after Citigroup upgraded the stock to "buy" from "neutral" and hiked its price target by $50 to $160.
The analyst raised its revenue and earnings per share (EPS) guidance on Qualcomm, citing inventory replenishment in the handset space that they believe will continue through the first quarter of 2024.
While the majority of analysts are already optimistic, there's still some room for an unwinding of pessimism. Of the covering brokerage firms, eight still rate QCOM a "hold" or worse.
Should today's positive premarket action hold strong, the stock will open at its highest level in weeks. It will also move above short-term pressure at its 20-day moving average and a recent ceiling at the $140 level. Still, it will take a few more percentage points for Qualcomm stock to conquer its 3.9% year-to-date deficit.
Over the last 10 weeks, bullish bets have been the popular choice amongst options traders. Those looking to place their bets should consider options, as QCOM sports attractively priced premium. This is per its Schaeffer's Volatility Index (SVI) of 22% that ranks in the low 5th percentile of its annual range, implying lower-than-usual volatility expectations are being priced in.
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3 months ago
Citi sees upside for Qualcomm earnings and guidance, initiates positive catalyst watch
By: Investing | January 12, 2024
Citi analysts launched a positive catalyst watch on Qualcomm (NASDAQ:QCOM) shares in a note Friday, also raising its rating to Buy from Neutral and its price target for the stock to $160 from $110 per share.
The bank explained that it expects upside to Qualcomm's print and guidance when it reports earnings, which is the basis for the 90-day positive catalyst watch.
"We believe the inventory replenishment in the handset end market should benefit both revenue and margins at Qualcomm," said the investment bank. "We expect the replenishment to continue at least through 1Q24, and Qualcomm should gain share at Samsung as well."
"We are raising our F24E revenue and EPS estimates from $37.5 billion and $7.61 to $38.5 billion and $8.16, and our F25E revenue and EPS estimates from $41.0 billion and $8.82 to $41.0 billion and $9.29, respectively," they added.
QCOM shares are up around 1.7% premarket, trading at $141.39 per share, adding to its more than 18% gain in the last 12 months.
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3 months ago
Qualcomm (QCOM) Stock's January Doldrums Could Be Starting
By: Schaeffer's Investment Research | January 3, 2024
• Plus, another 25 stocks to avoid this month
• QCOM doesn't have the best January performance track record
Chip stocks were all the rage in 2023 amid artificial intelligence (AI) advancements. While the sector still looks promising, there's one name in particular investors may want to avoid in early 2024. More specifically, Qualcomm Inc (NASDAQ:QCOM) has historically underperformed in January, and seems to be sticking to this trend so far today, last seen down 1.6% at $137.99.
Per data from Schaeffer's Senior Quantitative Analyst Rocky White, QCOM averaged a January loss of 3.3% over the past 10 years, and finished the month in the red seven of those times. A comparable move from the security's current perch would place it below $135.
Shares are today testing support from the 20-day moving average, which has been in place since early November, as they continue to pull back from their Dec. 28, 52-week high of $146.89. Qualcomm stock still sports an impressive 30.8% year-over-year lead.
An unwinding of optimism in the options pits could hurt QCOM. Over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), QCOM's 50-day call/put volume ratio of 2.01 ranks higher than 89% of readings from the past year.
Premiums are affordably priced, per the equity's Schaeffer's Volatility Index (SVI) of 24% that sits higher than just 10% of annual readings, meaning short-term options are pricing in lower-than-usual volatility expectations.
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5 months ago
Capital International Investors Sells 1,159,483 Shares of QUALCOMM Incorporated (QCOM)
By: MarketBeat | November 23, 2023
• Capital International Investors lessened its position in QUALCOMM Incorporated (NASDAQ:QCOM) by 11.5% during the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 8,946,380 shares of the wireless technology company's stock after selling 1,159,483 shares during the period. Capital International Investors owned 0.80% of QUALCOMM worth $1,064,840,000 at the end of the most recent reporting period...
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5 months ago
Qualcomm $QCOM a tale of 2 gaps now. Earnigns great, big gap and go, big gap from last report above. Will likely need to consolidate a bit before taking on that big gap above.
By: Options Mike | November 5, 2023
• $QCOM a tale of 2 gaps now. Earnigns great, big gap and go, big gap from last report above.
Will likely need to consolidate a bit before taking on that big gap above..
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6 months ago
Qualcomm (QCOM) projected to report further revenue decline in upcoming earnings
By: Investing | October 31, 2023
Semiconductor giant Qualcomm (NASDAQ:QCOM) is set to announce its earnings after market hours tomorrow, amid expectations of continued revenue decline. Analysts have projected a year-on-year (YoY) revenue decrease of 25.2% to $8.52 billion and adjusted earnings of $1.91 per share for this quarter. This anticipated decline contrasts with a 22.1% revenue increase in the same quarter last year.
In the previous quarter, Qualcomm reported a YoY revenue drop of 22.7% to $8.45 billion, missing analyst expectations by 0.66%. The company's operating margin also declined, and it provided disappointing revenue guidance for the next quarter. Most analysts have kept their estimates unchanged recently, suggesting they expect Qualcomm to remain on its current path – one that has seen it miss Wall Street's revenue estimates twice in the past two years.
Tech stocks have experienced declining investor sentiment since 2022, with an overall share price decline of 11.8%. Over the past month, Qualcomm's share price has fallen by 3.28%. The analyst price target for Qualcomm is $136.9, compared to its current share price of $107.46.
In comparison, Intel (NASDAQ:INTC)'s revenues fell by 7.69% YoY in the last quarter but beat analyst estimates by 4.12%, leading to a stock rise of 7.1%. Meanwhile, SMART's revenues dropped by 27.7%, missing estimates by 15.6% and causing a stock fall of 23.6%.
Amid these trends in the tech sector, generational shifts in the economy are leading to a surge in demand for cloud-native cybersecurity. This sector is witnessing a 70% YoY revenue growth and boasts best-in-class Software as a Service (SaaS) metrics.
InvestingPro Insights
According to InvestingPro's real-time data, Qualcomm's market cap stands at $120.34B USD with a P/E ratio of 14.02. Over the last twelve months as of Q3 2023, the company's revenue was $38.58B USD, indicating a decrease of 8.44%. The company's return on assets for the same period was an impressive 17.94%.
InvestingPro Tips reveal that Qualcomm has consistently raised its dividend for 21 consecutive years, a sign of financial stability and commitment to shareholder returns. The company operates with a high return on assets, demonstrating efficient use of its resources. Despite analysts anticipating a sales decline in the current year, Qualcomm remains a prominent player in the Semiconductors & Semiconductor Equipment industry.
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6 months ago
Qualcomm (QCOM) unveils new PC laptop chip with AI features for 2024
By: Investing | October 24, 2023
(Reuters) - Qualcomm (NASDAQ:QCOM) on Tuesday gave details about a chip for Microsoft (NASDAQ:MSFT) Windows-based laptops that it claims will be faster at some tasks than Apple (NASDAQ:AAPL)'s chips for Mac computers.
Qualcomm executives said that the company's new Snapdragon Elite X chip will be available in laptops starting next year and has been redesigned to better handle artificial intelligence tasks like summarizing emails, writing text and generating images.
The announcement comes a day after Reuters reported that Microsoft has encouraged Qualcomm, Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD) to come up with new chips to handle a bevy of new AI features in Windows, the world's most popular PC operating system.
Qualcomm will be the first to market with a chip to challenge Apple, whose laptop and desktop computers have more than doubled their market share since the iPhone maker introduced custom-designed chips in 2020. The X Elite chip will be the San Diego, California firm's first to feature completely custom computing cores designed by a team of ex-Apple engineers it acquired for $1.4 billion in 2021.
Qualcomm claimed on Tuesday that the X Elite is faster than Apple's M2 Max chip at some tasks and more energy efficient than both Apple and Intel (NASDAQ:INTC) PC chips. But Qualcomm Senior Vice President Alex Katouzian said the biggest new feature is that the chip can handle artificial intelligence models with 13 billion parameters, a proxy measure of sophisticated for AI systems that generate text or images.
"These models can respond faster than what you and I can read," Katouzian said. "No one else in the world can do that" on a laptop, Katouzian added.
Francis Sideco, an analyst with TIRIAS Research, said that with companies such as Adobe (NASDAQ:ADBE) rolling out the ability to use AI to generate images for everything from real estate brochures to beer can labels, demand for laptops with AI capabilities will rise.
"You've got a lot of smaller businesses and individual designers and creators using these devices. They need that kind of capability," Sideco said.
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6 months ago
Google, Qualcomm partner for RISC-V based Snapdragon Wear chipset
By: Investing | October 17, 2023
In a strategic partnership, Google (NASDAQ:GOOGL) and Qualcomm (NASDAQ:QCOM) are jointly developing a RISC-V based Snapdragon Wear chipset, aiming to enhance the functionality of future Wear OS watches. The collaboration was disclosed on Tuesday and is expected to result in custom cores, superior performance, and low power consumption for the wearable devices.
This development comes on the heels of the Pixel Watch 2 launch, which is powered by Qualcomm’s Snapdragon W5 Gen 1 processor. As part of their joint venture, Google and Qualcomm are also working towards establishing a robust software ecosystem and compatible apps for the first commercial RISC-V powered Wear OS watches. However, no specific launch date for these products has been provided yet.
RISC-V is an open-source alternative to Arm architecture that could potentially lead to cost savings for consumers due to its open nature. Google's official support for RISC-V in Android, announced in December 2022, along with a roadmap for its implementation, suggests a shift towards this architecture in the tech industry.
The move by Qualcomm and Google appears to be a strategic response to potential changes in Arm's licensing model, which could require device manufacturers to pay royalties based on device value. This partnership signifies a significant stride in wearable tech advancement as it aims to expedite the smartwatch production process for Original Equipment Manufacturers (OEMs).
As revealed by The Next Web, Qualcomm's engineering of a RISC-V-based platform for Google's Wear OS will augment its Snapdragon Wear line that predominantly powers Wear OS devices. The innovative chip architecture of RISC-V brings performance and power advantages to wearable technology. Consequently, Qualcomm's Snapdragon Wear platform innovations are set to rapidly evolve the Wear OS ecosystem.
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6 months ago
Tech executive admits to $150 million scam in sale of Abreezio to Qualcomm
By: Investing | October 6, 2023
Ali Akbar Shokouhi, a primary investor in the tech firm Abreezio, pleaded guilty to money laundering on Thursday, acknowledging his part in a massive fraud involving the sale of Abreezio to Qualcomm (NASDAQ:QCOM) for over $150 million. The case was announced by the Office of the U.S. Attorney for the Southern District of California on Friday.
The U.S. Attorney's Office disclosed that Akbar Shokouhi, who they referred to as a "second technology executive," admitted in a plea agreement to a $150 million scam against Qualcomm. Working alongside co-defendant Karim Arabi, they manipulated several facets of Abreezio including its "name selection", "creation", and "development and marketing". They presented it as an "angel-funded" venture, furthering their deceit.
In a striking demonstration of their successful deception, despite the ruse, Qualcomm was prepared to pay "$180 million" for Abreezio. The duo even went as far as using an alias for Arabi in their "text messages". These details were revealed as part of Shokouhi's plea agreement, highlighting the extent of their fraudulent activities.
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6 months ago
Qualcomm (QCOM) executive sells shares amid ongoing insider trading trend
By: Investing.com | October 3, 2023
Alexander Rogers (NYSE:ROG), President QTL & Global Affairs at Qualcomm (NASDAQ:QCOM) Inc, sold 6,001 shares of the company on Monday. This transaction is the latest in a series of insider sell-offs that have occurred over the past year, during which Rogers has sold a total of 60,054 shares without making any purchases.
Rogers holds a significant role at Qualcomm, overseeing the company's global licensing business and managing relationships with regulators, governments, and customers worldwide. His recent share sell-off could be indicative of his personal investment strategy or his perspective on the company's future prospects.
Qualcomm Inc , a world leader in the development and commercialization of foundational technologies for the wireless industry, offers products and services for mobile devices and infrastructure. The company's portfolio includes semiconductors, system software, and related applications used across various industries such as automotive, computing, IoT, and healthcare.
Within the past year, Qualcomm has witnessed 10 insider sales and no insider purchases, potentially signaling a bearish sentiment within the company's higher ranks. It is crucial to note that insiders may sell shares due to personal reasons unrelated to the company's performance or prospects.
On Monday when Rogers sold his shares, Qualcomm's stock was trading at $110.4 per share, resulting in a market cap of $123.99 billion for the company. The stock's price-earnings ratio stands at 14.43, lower than both the industry median of 23.68 and Qualcomm's historical median price-earnings ratio. This suggests that the stock might be undervalued compared to its peers and its own historical performance.
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6 months ago
KG&L Capital Management LLC Reduces Stake in Qualcomm Inc. (QCOM)
By: MarketBeat | September 29, 2023
• KG&L Capital Management LLC decreased its holdings in shares of QUALCOMM Incorporated (NASDAQ:QCOM) by 16.6% in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 7,979 shares of the wireless technology company's stock after selling 1,590 shares during the quarter. KG&L Capital Management LLC's holdings in QUALCOMM were worth $950,000 at the end of the most recent quarter...
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7 months ago
Qualcomm's Autotalks acquisition under UK regulator scrutiny
By: Investing.com | September 29, 2023
The U.K.'s Competition and Markets Authority (CMA) has expressed concerns over Qualcomm (NASDAQ:QCOM)'s planned acquisition of Israel-based auto chip maker Autotalks, indicating that the merger might significantly lessen competition within U.K. markets for goods and services. This development was communicated on Friday.
The CMA has invited comments on the transaction from any interested party, a move that precedes the initiation of a formal investigation. The regulator has not set a definitive deadline for these inputs yet.
The U.S. mobile-phone chip maker Qualcomm (NASDAQ:QCOM) had reached an agreement in May to acquire Autotalks. The move was intended to bolster Qualcomm's portfolio of Snapdragon chips for automakers. The financial details of the deal remain undisclosed.
According to InvestingPro data, Qualcomm has a market cap of $123.99 billion and operates with a P/E ratio of 14.48. The company has demonstrated a high return on assets, standing at 17.94% as of Q3 2023. Despite a revenue growth decline of -8.44% in the same period, Qualcomm remains a prominent player in the Semiconductors & Semiconductor Equipment industry.
The semiconductor company Qualcomm had announced on May 8 that its unit, Qualcomm Technologies, Inc., would be entering into a deal to acquire Autotalks, a fabless semiconductor firm.
InvestingPro Tips indicate that Qualcomm yields a high return on invested capital and has maintained its dividend payments for 21 consecutive years. These aspects of the company's performance suggest a strong financial position, which could be a key factor in its ongoing acquisition strategy.
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7 months ago
Qualcomm to unveil two variants of Snapdragon 8 Gen 3 chipset next month
By: Investing | September 25, 2023
In a series of recent developments, Qualcomm (NASDAQ:QCOM) is preparing to announce the Snapdragon 8 Gen 3 chipset at the upcoming Snapdragon Summit in Hawaii. The semiconductor giant plans to reveal two versions of the processor, according to leaked email conversations between Qualcomm and its partners, including Samsung (KS:005930). The documents were made public by South Korean blog gamma0burst on Monday.
The Snapdragon 8 Gen 3 chipset will arrive in two variants, both manufactured under Taiwan Semiconductor Manufacturing Company's (TSMC) process nodes. One will be produced using TSMC's 4nm N4P node, while the other, expected to be more powerful and energy-efficient, will use TSMC's enhanced 3nm N3E node.
The two variants are anticipated to have the same CPU combination structure. However, there could be notable differences in performance and power efficiency due to the different manufacturing processes used. This combination includes ARM's latest Cortex X4, Cortex A720, and Cortex A520 CPU cores.
Although both versions bear similar CPU combos, it remains uncertain whether they will be distinguished as non-Plus and Plus versions. This ambiguity arises from the fact that in 2022, Qualcomm launched the Snapdragon 8 Gen 1 and Snapdragon 8+ Gen 1 with identical CPU combinations.
The new processors are expected to offer improved efficiency and overheating prevention compared to their predecessors. The 3nm variant, in particular, is anticipated to be more powerful and energy-efficient due to its smaller feature set and transistors. Presently, Apple (NASDAQ:AAPL)'s A17 Pro is the only other 3nm mobile chip globally.
Unlike in 2022 when Qualcomm replaced the Snapdragon 8 Gen 1 with the Snapdragon 8+ Gen 1, the company plans to unveil both variants of the Snapdragon 8 Gen 3 chipset simultaneously this year. The launch event is scheduled for October 24 at the Snapdragon Summit in Hawaii.
As Qualcomm gears up for the release of the Snapdragon 8 Gen 3, it is expected to be a significant event for Android flagships in 2024. However, given past experiences, it could be an unpredictable journey for these flagships.
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7 months ago
SECO and Qualcomm join forces to launch new edge computing solutions for Industrial IoT
By: Investing.com | September 21, 2023
SECO S.p.A. (IOT.MI), an Italian high-tech company, has announced a strategic partnership with Qualcomm (NASDAQ:QCOM) Technologies International, Ltd. on Thursday. This collaboration aims to accelerate the development of new edge computing products for the Industrial IoT world, primarily designed for OEM customers.
The partnership will see SECO designated as a Qualcomm Technologies' IIoT design center partner. In this capacity, SECO will develop reference designs for off-the-shelf hardware solutions. The focus of this collaboration is the creation of a system-on-module (SOM) and a modular single-board computer (SBC), both of which will be included in SECO's standard edge computing solutions catalogue.
Qualcomm Technologies will provide support to SECO in the development of these products to expedite their time to market. This support includes technical assistance to facilitate the integration of Qualcomm components into SECO's new products.
Moreover, the partnership will enable custom designs for customers adopting Qualcomm Technologies chipsets, aiming to meet specific needs of companies in their respective vertical sectors. This design flexibility offers added value for companies looking to optimize their devices' performance through the implementation of IIoT applications.
SECO also plans to assist users of these solutions in connecting quickly to CLEA – its internally developed IoT platform. This platform enables functionalities such as machine learning and artificial intelligence applications in machines built for end users.
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7 months ago
Qualcomm's new platform aims to revolutionize home and business connectivity
By: Investing.com | September 20, 2023
Qualcomm (NASDAQ:QCOM) Technologies, a subsidiary of Qualcomm Inc ., unveiled its latest '10G Fiber Gateway Platform' and a cloud-based 'Service Defined' Wi-Fi solution on Wednesday. The company's new offerings aim to transform connectivity in homes and businesses, with commercial availability expected by summer 2024.
The 'Service Defined' Wi-Fi platform is designed to optimize the use of newly installed fiber optic cables and emerging technologies like Wi-Fi 7. It will provide a unified data flow management system that can adapt to various user activities, including gaming, streaming, and video conferencing. This technology will offer service providers unique orchestration and insights, improving subscriber experience. It will facilitate the provision of differentiated services optimized for various uses.
Moreover, Qualcomm's new platform promises to enhance the performance of wireless networks for service providers and enterprise customers. It will offer tools that can boost network performance by enabling service providers to manage network access to the home and Wi-Fi within the home concurrently. This integrated approach is expected to enhance the quality of service across the network.
Alongside its 'Service Defined' technology, Qualcomm's 10G Fiber Gateway will provide 10Gbps connectivity "to and through the home," using 10G Passive Optical Network (PON) tech and multi-gigabit Wi-Fi 7.
Ganesh Swaminathan, VP and GM of Qualcomm's wireless infrastructure and networking business, emphasized that the new platform would allow service providers to extend service level agreements to the Wi-Fi network. This means they can program the gateway to deliver precise services, potentially improving Wi-Fi connection performance in areas such as latency as network conditions change.
The company's new software-based Wi-Fi management platform is versatile enough to run on various access networks. These include fiber-to-the-premises (FTTP), hybrid fiber/coax (HFC)/DOCSIS, and fixed wireless access (FWA). Qualcomm's latest venture into the broadband gateway field is primarily focused on fiber.
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7 months ago
Qualcomm introduces new mid-range mobile processor, Snapdragon 7s Gen 2
By: Investing.com | September 18, 2023
Qualcomm (NASDAQ:QCOM) unveiled its latest mid-range mobile processor, the Snapdragon 7s Gen 2, on Monday. The new system-on-chip (SoC), despite its name, is confirmed to be less powerful than the Snapdragon 7 Gen 2. It is set to power the Redmi Note 13 Pro, which is slated for launch on September 21, 2023.
The Snapdragon 7s Gen 2 is built on the 4nm process technology, designed to provide a capable platform for phone manufacturers aiming for a lower budget than the Gen 8 chips. The central processing unit (CPU) of the 7s is less powerful than any other Snapdragon 7 series chip, and the image signal processor (ISP) is also not as impressive, indicating a slightly lower positioning overall.
The chipset supports up to 12GB LPDDR5 memory and UFS 4.0 storage. It comes equipped with the Snapdragon X62 5G modem with a peak rate of 2.9Gbps and support for 5G millimeter wave technology. The FastConnect 6700 connectivity platform is a step back from the 6900 on the Snapdragon 7+ Gen 2, while Bluetooth supported is capped at version 5.2.
The Snapdragon 7s Gen 2 also boasts Qualcomm Spectra's 12-bit ISP that allows for triple-camera simultaneous shooting, supporting up to a single camera of 200MP and enabling video capture at up to 4K resolution at a frame rate of 30 fps. The chipset also comes with the Snapdragon Listening technology for clear audio during calls and media consumption.
While Qualcomm did not officially release a timeframe in which we'll see devices with the new chipset, it is expected that many mid-range smartphones in the future will be powered by the Snapdragon 7s Gen 2, starting with the Note 13 Pro.
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7 months ago
Qualcomm (QCOM) Shares Rise for Fourth Consecutive Day Amid Upbeat Market
By: Investing.com | September 15, 2023
In a broadly positive trading session, Qualcomm (NASDAQ:QCOM) Inc. saw its shares climb by 1.24% to reach $114.04 this past Thursday, marking the fourth successive day of gains for the firm. This upward trend occurred in a favorable trading environment, as reflected by the wider performance of the U.S. stock market.
The S&P 500 Index, an indicator of the performance of 500 large companies listed on U.S. stock exchanges, also experienced an uplifting session. The index moved up by 0.84%, settling at 4,505.10 points.
Simultaneously, the Dow Jones Industrial Average, another significant American stock market index representing the value of 30 large, publicly owned U.S. companies, increased by 0.96% to hit 34,907.11 points.
To summarize, Qualcomm's shares advanced in a trading session that also saw gains for both the S&P 500 Index and Dow Jones Industrial Average.
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7 months ago
Why Are Qualcomm (QCOM) Shares Soaring Today
By: Investing.com | September 11, 2023
What Happened: Shares of wireless chipmaker Qualcomm (NASDAQ:QCOM) jumped 9.29% in the pre-market session after the company announced an agreement with Apple (NASDAQ:AAPL) to provide Snapdragon® 5G Modem-RF Systems for smartphone releases in 2024, 2025, and 2026. Qualcomm is the leading supplier of 5G modems, and this deal with Apple further cements its position in the market. Analysts have been concerned that Apple might be increasingly moving towards in-house production of some of its chipsets, which could have hurt Qualcomm's business. However, this deal shows that Apple is still committed to using Qualcomm's modems, which is a positive sign for investors. After the initial pop the shares cooled down to $109.43, up 3.1% from previous close.
Is now the time to buy Qualcomm? Find out by reading the original article on StockStory.
What is the market telling us: Qualcomm's shares are somewhat volatile and over the last year have had 13 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was four days ago, when the company dropped 6.06% on the news that stocks of chipmakers and other suppliers of components used to make Apple devices retreated amid recent reports suggesting China's intention to expand its prohibition of Apple device usage from government officials to state and federal agencies. For example, Qualcomm supplies some of the chips used in iPhones.This development has raised concerns among investors about the potential implications of the ban on the iPhone production supply chain and future demand from China, as the extent of these restrictions remains uncertain.
Qualcomm is up 2.09% since the beginning of the year, but at $109.43 per share it is still trading 21% below its 52-week high of $138.46 from January 2023. Investors who bought $1,000 worth of Qualcomm's shares 5 years ago would now be looking at an investment worth $1,510.
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7 months ago
Qualcomm soars 8% as Apple renews chip agreement through 2026
By: Investing.com | September 11, 2023
Qualcomm Technologies (NASDAQ:QCOM) announced today that it has secured an agreement with Apple (NASDAQ:AAPL) to provide its high-end chips for Apple’s smartphones.
The agreement covers the products that are set to be launched in 2024, 2025, and 2026, Qualcomm said.
Shares in the chipmaker soared more than 8% on the announcement.
“This agreement reinforces Qualcomm's track record of sustained leadership across 5G technologies and products,” the chipmaker said in a press release.
Qualcomm’s 5G Modem-RF Systems will be used for new Apple products with the chipmaker noting “terms and conditions [are] similar to previous agreement.”
Qualcomm also noted a 20% share of chipset supply for the smartphone launch in 2026.
The six-year global patent license agreement, which was signed in 2019, remains unchanged. Two companies have an option to extend the agreement for two more years.
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7 months ago
Wetherby Asset Management Inc. Has $5.14 Million Holdings in Qualcomm Inc. (QCOM)
By: MarketBeat | September 9, 2023
• Wetherby Asset Management Inc. increased its stake in QUALCOMM Incorporated (NASDAQ:QCOM) by 2.9% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 40,284 shares of the wireless technology company's stock after buying an additional 1,152 shares during the quarter. Wetherby Asset Management Inc.'s holdings in QUALCOMM were worth $5,139,000 as of its most recent SEC filing...
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7 months ago
Why Qualcomm (QCOM) Stock Is Trading Lower Today
By: Investing.com | September 7, 2023
What Happened: Shares of wireless chipmaker Qualcomm (NASDAQ:QCOM) fell 6.06% in the morning session after stocks of chipmakers and other suppliers of components used to make Apple (NASDAQ:AAPL) devices retreated amid recent reports suggesting China's intention to expand its prohibition of Apple device usage from government officials to state and federal agencies. For example, Qualcomm supplies some of the chips used in iPhones. This development is likely to raise concerns among investors about the potential implications of the ban on the iPhone production supply chain and future demand from China, as the extent of these restrictions remains uncertain.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Qualcomm? Find out by reading the original article on StockStory.
What is the market telling us: Qualcomm's shares are somewhat volatile and over the last year have had 12 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was about one month ago, when the stock dropped 7.59% on the news that the company reported third-quarter revenue that came in below Wall Street's expectations. Revenue guidance for the next quarter was underwhelming, although adjusted EPS guidance was more in line. Additionally, operating margin declined and inventory levels rose. We'd note that the company recorded a rare quarter of cash burn as well. On the other hand, earnings per share beat. Overall, it was a challenging quarter for the company, with underwhelming results and guidance.
Qualcomm is down 0.82% since the beginning of the year, and at $106.29 per share it is trading 23.2% below its 52-week high of $138.46 from January 2023. Investors who bought $1,000 worth of Qualcomm's shares 5 years ago would now be looking at an investment worth $1,510.
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8 months ago
Should You Buy Qualcomm On The Dip?
By: Barchart | August 24, 2023
Investors in the big-cap tech sector have been taken on a roller-coaster ride over the past year. Tech stocks fell hard late in 2022 due to rising interest rates and elevated inflation levels, which translated to higher interest expenses and lower margins for the sector. More recently, after a historic first-half performance for the Nasdaq 100 Index ($IUXX) to start 2023, a mixed second-quarter earnings season and signs of a sluggish global economy have weighed on investor sentiment - sparking pullbacks across the stock market over the past month.
Shares of semiconductor giant Qualcomm (QCOM) didn't perform quite as historically as the broader Nasdaq in the first half, but still managed a gain of 8.2% for the period. Since peaking just shy of $133 this past July, though, the stock has shed more than 16%. At its current levels around $111 per share, QCOM is valued at a market cap of $122.17 billion, and the stock offers shareholders a dividend yield of 2.9%.
But is QCOM a good buy on the latest pullback - or just riding the latest wave of share price volatility? Let's take a look.
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Is Qualcomm Stock A Buy, Sell, Or A Hold?
Qualcomm is best known as a designer and manufacturer of semiconductors and wireless telecom chips. The company enjoys leadership in verticals such as wireless connective, high-performance, low-power computing, on-device intelligence, and RF front-end. It is also the leading processor brand for premium Android-powered smartphones.
While Qualcomm is a major semiconductor player, the tech stock has trailed broader equity markets by a wide margin over the past decade. Since August 2013, QCOM stock has returned 121%, compared to gains of 167% for the S&P 500 Index ($SPX) and 387% for the Nasdaq 100.
The ongoing 5G upgrade cycle is a critical driver for Qualcomm in the near term. A research report from Counterpoint estimates global smartphone sales will hit their lowest point in a decade this year. The smartphone segment accounts for a majority of sales for Qualcomm, and the slowdown in mobile sales has negatively impacted the company’s top-line growth. But as customers will continue to upgrade their devices every few years, the slowdown is unlikely to be a long-term headwind.
In addition to falling smartphone sales industrywide, Qualcomm is on the verge of losing one of its largest customers in Apple (AAPL), which accounts for roughly 10% of sales. Apple has disclosed plans to replace Qualcomm’s modems with its own chips as soon as 2024. Qualcomm is also losing market share to competitors like MediaTek, exacerbating its top-line deceleration.
Qualcomm is now looking to diversify its revenue base, and aims to gain traction in the highly disruptive artificial intelligence (AI) segment - a market that is forecast to surpass $1 trillion by 2030, according to some estimates.
Moreover, Qualcomm's digital chassis allows automotive manufacturers to integrate communication functionalities and driver assistance capabilities in vehicles, further diversifying the company's revenue stream away from telecom. Another driver for the tech giant may be the Internet of Things (IoT) segment, as Qualcomm is already developing chips to power VR headsets for Meta Platforms’ (META) Oculus.
In fiscal Q3 of 2023 (ended in June), Qualcomm's smartphone sales stood at $5.3 billion, followed by IoT revenue at $1.5 billion, and automotive revenue at $434 million. While total sales were down 23% year over year, adjusted EPS fell by 37% in the June quarter.
Semiconductor stocks tend to be cyclical in nature, and analysts expect fiscal 2023 earnings for Qualcomm to decline by 42.5% overall, weighed down by an expected 47.5% drop in current quarter earnings.
What Is The Target Price For Qualcomm Stock?
Out of the 22 analysts covering Qualcomm stock, 14 recommend a “strong buy,” 1 recommends a “moderate buy,” six recommend a “hold,” and one recommends a “strong sell.” The average price target for QCOM is $135.95, which is about 22% above current levels.
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QCOM stock is priced at 3.5x forward sales and 13.2x forward earnings, which is quite reasonable based on industry averages.
That said, while the recent pullback and relatively attractive valuation might limit the downside risk for investors, Qualcomm should prove that it can stabilize earnings and cash flows across market cycles before it qualifies as a truly enticing investment for shareholders.
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DiscoverGold
8 months ago
Qualcomm cut at Daiwa on more muted outlook
By: Investing.com | August 9, 2023
Daiwa Capital Markets downgraded shares of Qualcomm Incorporated (NASDAQ:QCOM) to Outperform from Buy in a note Wednesday, maintaining a $125 price target on the stock.
The firm told investors that the company now has a more muted outlook following its earnings release on August 2.
The company posted Q3 earnings of $1.87 per share, $0.06 better than the analyst estimate of $1.81. However, revenue for the quarter came in at $8.44 billion, below the consensus estimate of $8.51 billion.
"The issues of prior quarters remain; China not seen a rebound, overall consumer demand is weak, high inventory levels and Apple (NASDAQ:AAPL) bought product more heavily earlier in the year," the note said.
"Add to this going forward as Huawei starts shipping 5G phones, Qualcomm does not have a license here for 5G, only with 4G, thus will lose about $1B in recurring revenue."
While Daiwa still views the business as having long-term growth potential, especially from Auto and IoT, it notes that near-term Auto is only 6% of QCT revenue.
"IoT is larger at ~20%, but needs the consumer and macro to rebound," it added, stating that the company has a "tough growth year ahead."
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DiscoverGold
8 months ago
Why Put Traders Are Piling on Qualcomm (QCOM) Stock
By: Schaeffer's Investment Research | August 3, 2023
• QCOM reported an downbeat fiscal third-quarter report
• Put volume is running at nine times what is typically seen at this point
Semiconductor concern Qualcomm, Inc. (NASDAQ:QCOM) is plunging today, last seen down 10.6% to trade at $115.59. Today's drop follows a lackluster fiscal third-quarter report, with the company missing revenue expectations and issuing a softer-than-expected fourth-quarter outlook amid weak smartphone sales. Earnings, however, came in slightly above estimates.
Put traders are taking notice of the results. Already today, 76,000 bearish bets have already crossed the tape, which is nine times the intraday average volume. New positions are being bought to open at the top five most popular contracts, led by the weekly 8/4 115-strike put.
The brokerage bunch is also weighing in. Deutsche Bank downgraded the equity to "hold" from "buy" and cut its target price to $120 from $130, while Susquehanna and J.P. Morgan Securities slashed their price objectives as well. Piper Sandler, CFRA, and Morgan Stanley all adjusted their price targets higher, however.
Coming into today, 15 of the 21 covering brokerages rated Qualcomm stock a "buy" or better. Meanwhile, the 12-month consensus target price of $137.79 is an 18.9% premium to current levels.
Today's bear gap puts QCOM back below a recent safety net at its 50-day moving average. Down 22.4% over the last 12 months, Qualcomm stock still sports a 5.3% year-to-date lead.
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DiscoverGold
8 months ago
Qualcomm forecasts sales below estimates as smartphone slump persists
By: Investing.com | August 2, 2023
(Reuters) -Qualcomm forecast fourth-quarter sales below market expectations on Wednesday and said it would likely cut jobs as consumer spending on gadgets like smartphones remained stubbornly weak amid slowing global economic growth.
Demand for consumer electronics has also been hampered by China's slower-than-expected economic recovery. Smartphone shipments in the world's second largest economy were down 5% in the June quarter, Canalys data showed.
Qualcomm (NASDAQ:QCOM) said its forecast also takes into account the impact of the macroeconomic headwinds, weaker global handset units and channel inventory drawdown.
The company estimated fourth-quarter revenue of $8.1 billion to $8.9 billion, while analysts polled by Refinitiv expected $8.70 billion. Qualcomm forecast a fourth-quarter adjusted earnings range with a midpoint of $1.90, in line with analysts' consensus estimate of $1.91 per share according to Refinitiv data.
Qualcomm warned of likely restructuring charges for job cuts.
"While we are in the process of developing our plans, we currently expect these actions to consist largely of workforce reductions, and in connection with any such actions we would expect to incur significant additional restructuring charge," the company said in a securities filing.
Qualcomm shares fell nearly 3.3% in choppy extended trading.
At a conference in May, Qualcomm CEO Cristiano Amon said he had not seen signs of healthy consumption in China yet and the smartphone industry recovery was "a number of quarters out."
Qualcomm rival MediaTek last week warned that phone manufacturers are "cautious" about buying chips due to tepid end-user demand.
Revenue at Qualcomm's mainstay handset chip business fell 25% to $5.26 billion in the third quarter. Adjusted revenue of $8.44 billion missed estimates of $8.50 billion.
It forecast adjusted fourth-quarter earnings per share of $1.80 and $2, compared to estimates of $1.91.
The automotive sector was a bright spot as Qualcomm seeks to diversify beyond smartphone chips. Revenue from the sector grew 13% on the increasing use of computer chips in vehicles.
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8 months ago
Qualcomm (QCOM) earnings beat by $0.06, revenue fell short of estimates
By: Investing.com | August 2, 2023
Qualcomm (NASDAQ: QCOM) reported third quarter EPS of $1.87, $0.06 better than the analyst estimate of $1.81. Revenue for the quarter came in at $8.44B versus the consensus estimate of $8.51B.
Guidance
Qualcomm sees Q4 2023 EPS of $1.80-$2.00 versus the analyst consensus of $1.91.
Qualcomm sees Q4 2023 revenue of $8.10B-$8.90B versus the analyst consensus of $8.70B.
Qualcomm's stock price closed at $129.27. It is up 18.84% in the last 3 months and down -13.33% in the last 12 months.
Qualcomm saw 0 positive EPS revisions and 18 negative EPS revisions in the last 90 days. See Qualcomm's stock price’s past reactions to earnings here.
According to InvestingPro, Qualcomm's Financial Health score is "great performance".
Check out Qualcomm's recent earnings performance, and Qualcomm's financials here.
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DiscoverGold
9 months ago
Earnings Preview: Qualcomm Inc. (NASDAQ: QCOM)
By: 24/7 Wall St. | August 1, 2023
• Here is a preview of what to expect from five companies reporting results after Wednesday’s closing bell.
Qualcomm
Networking chip and equipment maker Qualcomm Inc. (NASDAQ: QCOM) has dropped about 9.7% from its share price over the past 12 months. The Dow Jones industrial average component could be a real value at its current share price, or it could be a value trap.
The company has been working on a way to shrink AI language models to fit on a cell phone. Qualcomm beamed at the recent announcement of Meta Platforms’ decision to release its Llama 2 large language model as open source. If, as the company believes, Qualcomm is way ahead of all its competitors in figuring out how to run AI algorithms on a smartphone, the stock is a bargain. If not, well, not so much.
Of 33 analysts covering Qualcomm, 25 have a Buy or Strong Buy rating and another seven rate it at Hold. At a share price of around $131.00, the upside potential based on a median price target of $140.00 is 6.9%. At the high target of $159.00, the upside potential is 21.4%.
Third-quarter fiscal 2023 revenue is forecast to come in at $8.51 billion, down 8.2% sequentially and 22.1% lower year over year. Adjusted EPS are forecast at $1.81, down 15.4% sequentially and by 38.9% year over year. For the full fiscal year ending in September, analysts expect the company to post EPS of $8.25, down 34.1%, on sales of $36.05 billion, down 18.4%.
Qualcomm stock trades at 15.9 times expected 2023 EPS, 13.7 times estimated 2024 earnings of $9.60 and 13.0 times estimated 2025 earnings of $10.12 per share. The 52-week range is $101.47 to $152.91. Qualcomm pays an annual dividend of $3.20 (yield of 2.42%). Total shareholder return over the past 12 months was negative 7.02%.
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9 months ago
Migdal Insurance & Financial Holdings Ltd. Increases Stake in Qualcomm Inc (QCOM)
By: MarketBeat | July 21, 2023
• Migdal Insurance & Financial Holdings Ltd. lifted its stake in shares of QUALCOMM Incorporated (NASDAQ:QCOM) by 956.1% during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 310,785 shares of the wireless technology company's stock after acquiring an additional 281,357 shares during the period. Migdal Insurance & Financial Holdings Ltd.'s holdings in QUALCOMM were worth $39,618,000 as of its most recent SEC filing...
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