JP Morgan analyst Samik Chatterjee maintained an Overweight rating on Qualcomm Inc (NASDAQ:QCOM).
Samsung Electronics recently launched its latest flagship smartphone, the S25, which features Snapdragon chipset across all its variants.
This marks a share gain for Qualcomm compared to the previous generation flagship S24, whose base and Plus models outside North America and China used Samsung’s in-house Exynos chipset.
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Regaining this share with Samsung underscores Qualcomm’s technology leadership in mobile processors, which continues to expand into other key markets including automotive and IoT.
In terms of incremental share gains, Chatterjee estimates increasing the incremental revenue opportunity to $2 billion within mobile phone TAM and incremental EPS of approximately $0.63 (5% of 2025E EPS Consensus).
Chatterjee estimates that the incremental share gain on S25 will be 12 million units incremental.
Chatterjee estimates that in 2024, shipments of the pre-generation flagship S24 will be close to 40 million units, with 20 million units for the high-end super model.
With an estimated 60%/40% of lower-end models leveraging Exynos/Snapdragon in the S24 lineup (only the US and China leveraged SD), Chatterjee says Qualcomm has a 70% share of the last flagship It is estimated that it will increase. 100% on the current generation flagship S25, or an increase of 12 million units over the previous year. The incremental units will lead Chatterjee to estimated incremental revenue of $2 billion. This means an incremental EPS contribution of 5%.
Earlier this week, Chatterjee placed Qualcomm on a positive catalyst and monitored its upcoming earnings print. He has already included benefits in his model.
Qualcomm stock has surged 13% over the past 12 months. Investors can gain exposure to the stock through the First Trust Nasdaq Semiconductor ETF (NASDAQ: FTXL) and the ISHARES Semiconductor ETF (NASDAQ: SOXX).
Price Action: QCOM stock was down 0.41% at $173.64 at last check on Friday.
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February 2022
Mizuho
maintain
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February 2022
morgan stanley
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too fat
February 2022
JP Morgan
maintain
too fat
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