Qualcomm is seeing strong demand for smartphones, but is stocks shopping?
Qualcomm (NASDAQ: QCOM) Stocks fell despite semiconductor companies reporting robust fiscal first quarter results and issuing bright guidance. At the time of writing, it has slightly surpassed 15% over the past year, but is up about 28% from the hit high in June.
Let’s dig into Qualcomm’s results and see if this is a good opportunity to buy stock at Dip.
For the third quarter in a row, Qualcomm recorded double-digit revenue growth, setting new quarterly records along the way. In the first quarter, which ended December 29th, revenues rose 17% to $11.67 billion, easily surpassing the $10.93 billion consensus compiled by LSEG.
Chip Segment (QCT) revenue rose 20% to $10.1 billion. Mobile phones, including smartphones, rose 13% to $7.6 billion, while car revenues rose 61% to $961 million. The Internet of Things (IoT) revenues rose 36% to $1.5 billion.
The company praised the solid phone revenue performance from premium Android devices, including the Samsung Galaxy S25 devices using the Snapdragon 8 Elite platform. He also said sales to Chinese customers are strong as the premium portion of the market grows domestically.
In the Automotive Chip segment, automakers say “use high-performance, low-power computing and connectivity chips to bring the next-generation experience to consumers.” He also said he has partnered with many car manufacturers. Artificial Intelligence (AI)– Power source, cabin, advanced driver assistance system. Meanwhile, IoT said it has strengths across consumer, networking and industrial industries.
Meanwhile, revenues in the Margin License Segment (QTL) rose 5% to $1.5 billion. He said he has extended major contracts with major original equipment manufacturers (OEMs) over the past year, and will soon renew two new long-term licensing agreements with additional large OEMs.
|
metric |
Mobile phone (QCT) |
Automatic (QCT) |
IoT (QCT) |
QCT Segment |
QTL Segments |
|---|---|---|---|---|---|
|
Revenue |
$7.6 billion |
$961 million |
$1.5 billion |
$10.1 billion |
$1.5 billion |
|
growth |
13% |
61% |
36% |
20% |
5% |
Data Source: Qualcomm.
Adjusted earnings per share (EPS) rose 24% to $3.41, with analysts’ consensus forecast of $2.96.
Qualcomm guides second quarter revenues between $10.3 billion and $11.2 billion, representing 10% to 19% growth. We are looking for chip revenues of $8.9 billion to $9.5 billion and license revenues of $1.25 billion to $1.45 billion. It forecasts adjusted EPS in the $2.70-$2.90 range. Analysts were looking for a $2.69 adjusted EPS and $10.3 billion in revenue, so the midpoint of that guidance was firmly ahead of these expectations.
