The company has disappointed investors after stating that its licensing business, which accounted for 14.8% of reported quarterly total revenue, will not achieve revenue growth this year after the expiration of an agreement with Huawei Technologies.
Analysts at TD Cowen said they expect the removal of Huawei royals to be mild, but when they see “a separate brick in the wall of worry facing the inventory” added I stated.
However, analysts noted that Qualcomm has secured licensing agreements with two other Chinese smartphone companies.
Qualcomm – One of the biggest manufacturers of processors that power smartphones has beaten first quarter results with strong demand for AI capabilities in mobile devices.
The company’s performance is often seen as an indicator of overall market demand in the smartphone industry. Data from LSEG shows that the midpoint of the second quarter’s forecast was $10.75 billion, with an adjusted profit of $2.80 per share of $2.80, outperforming sales and adjusted profit of $2.69 per share. It’s there. Qualcomm praised the robust sales from China for growth in smartphone units as government subsidies and numerous flagships launched domestic electricity demand.
The company “runs well in itself with benefits from all aspects of the business, including continuing to actively surprise investors, such as mobile phones, cars, and IoT,” analysts at JP Morgan said. I did.
Chip designer stocks rose modestly in 2024, but a 6% increase was pale, compared to a 171% jump in stocks of AI chip leader Nvidia. But they’re way ahead of Intel’s stock, which lost 60%, and above the sophisticated microdevice that flowed 18% last year.
According to data compiled by LSEG, Qualcomm’s median price target is $192.
The company’s 12-month advanced price-to-return ratio was 15.02 compared to Nvidia’s 27.64, INTC’s 32.21, and AMD’s 22.5.
ARM Holdings shares fell 4.5% after Chiptech providers said they didn’t meet the top spot of previously issued full-year forecasts. Qualcomm also said ARM has withdrawn the threat of terminating its licensing agreement with the CHIP technology provider.
