‍

Market Expectations:
‍

Analysts are forecasting a 25.2% YoY decline in Qualcomm's revenue to $8.52 billion, a significant deceleration compared to the 22.1% YoY increase recorded in the same quarter last year. The adjusted earnings are expected to be $1.91 per share. Despite these grim projections, KeyBanc Capital anticipates a "beat and raise" scenario driven by a surge in Android smartphone demand.

Qualcomm {{ m-tag option="price" ticker="QCOM" currency="USD" }}faces stiff competition from tech giants like Samsung {{ m-tag option="price" ticker="005930.KS" currency="KRW" }} and Huawei, with potential market share losses projected by 2024. However, the company is diversifying its product offerings, recently unveiling new AI chips at the Snapdragon Summit 2023, aimed at rivaling Nvidia {{ m-tag option="price" ticker="NVDA" currency="USD" }} in the generative AI space.

With a market capitalization of $121.63 billion and a moderate P/E ratio of 14.14, Qualcomm is fairly valued. The company has also been efficient in operations, generating a gross profit of $21.73 billion despite an 8.44% revenue decline over the last twelve months.

‍

Investment Insights:

Qualcomm has a history of consistent dividend payments and operates with a high return on assets. These factors make it an attractive investment, especially considering the upcoming Q4 earnings announcement. Wall Street and Seeking Alpha analysts predominantly recommend a 'Buy' rating for the stock.

‍

Stock Performance:

Qualcomm's shares have seen a 1% YTD decrease and are underperforming broader indexes. However, if the company surpasses its projected Q4 earnings of $1.92 per share and sales of $8.55 billion, its valuation could be boosted. The stock is currently trading at $107.46, with an analyst price target of $136.9.

‍

Tech stocks, in general, have been facing declining investor sentiment since 2022. Qualcomm's peers, such as Intel {{ m-tag option="price" ticker="INTC" currency="USD" }} and SMART {{ m-tag option="price" ticker="SGH" currency="USD" }}, have also reported mixed Q4 earnings, further emphasizing the challenging landscape Qualcomm is navigating. Intel's revenues decreased 7.69% YoY, beating analyst estimates by 4.12%, while SMART reported a revenue decline of 27.7% YoY, missing analyst estimates by 15.6%.

‍

Stock Performance Analysis of Qualcomm:
‍

• Year-over-Year (YoY) Revenue Decline: Analysts predict a 25.2% decline compared to the same quarter last year.
• Revenue Projection: $8.52 billion for the upcoming quarter.
• Adjusted Earnings Per Share (EPS): Expected to be $1.91.
• Comparison with Previous Year: This is in contrast to the 22.1% YoY increase in the same quarter last year.
• Analyst Opinions: Despite negative forecasts, KeyBanc Capital expects a "beat and raise" scenario due to increased Android smartphone demand.
  ‍

‍

‍
‍
The information on mexem.com is for general informational purposes only. It should not be regarded as investment advice. Investing in stocks involves risk. A stock's past performance is not a reliable indicator of its future performance. Always consult a financial advisor or trusted sources before making any investment decisions.
‍
‍