Qualcomm Inc.


SKU: QCOM Category:


Qualcomm’s fiscal Q2 results were decent with revenues above expectations and earnings in line with the analyst consensus estimates. It is considered a fair result given the difficult macroeconomic climate and widespread decline in the semiconductor industry. The company’s second quarter revenue was $9.3 billion. Due to a decline in phone demand, their licensing business only generated $1.3 billion in sales, which was below forecast. The company expanded its 5G technology and product leadership in handsets with the Snapdragon X75 5G Modem-RF system, which will enable the next wave of new 5G capabilities globally beginning in 2024 across segments, device types, and networks. Additionally, their recently-launched Snapdragon 7+ Gen 2 mobile platform outperforms top-tier offerings from rivals, garnering several awards for its outstanding strength and performance. During the quarter, there was significant use of Qualcomm’s Snapdragon digital chassis across major OEMs and Tier 1 clients in automotive. The need for generative AI models is also expanding at an exponential rate. Besides that, the company introduced Snapdragon Game Super Resolution (GSR) to improve the battery life and performance of mobile games. Although Qualcomm may not be immune to short-term obstacles, the company believes it is well-positioned to gain from a macroeconomic rebound in the long run. We give Qualcomm Incorporated a ‘Buy’ rating with a revised target price.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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