Qualcomm's stock surges 41% in 2024 due to smartphone market rebound and rise in AI.

From Nasdaq: 2024-06-05 02:09:48

Qualcomm’s stock has surged by 41% this year, driven by a rebound in the smartphone market and the rise of generative AI. The company’s Q2 FY’24 results were better than expected, with revenue guidance for Q3 at $8.8-$9.6 billion. Qualcomm’s automotive business is also thriving, with a 35% revenue increase in Q2 FY’24.

The global smartphone market saw an 11% year-on-year growth in Q1 2024, benefiting Qualcomm’s CDMA Technologies segment. Demand for high-end chipsets like Snapdragon 8 Gen 3 is rising due to the AI trend. Chinese OEMs are driving growth, while Qualcomm’s chips are gaining traction in the PC market, especially for AI features.

Qualcomm’s stock has increased by 35% due to optimism around AI and automotive businesses. The stock price is now around $205. However, competition in the mobile chipset space is intensifying, with Huawei and Samsung launching phones with their own processors. Despite concerns, Qualcomm is trading at 22x consensus FY’24 earnings.

The Trefis High Quality Portfolio has consistently outperformed the S&P 500, offering better returns with less risk. With uncertainties like elevated interest rates, it remains to be seen if Qualcomm can beat the S&P 500 in the next 12 months. It is currently valued at $204 per share, slightly above Trefis’ estimated price of $189.



Read more at Nasdaq: Qualcomm Stock Is Up 40% This Year As AI And Auto Business Surge