Qualcomm is expecting positive earnings with 5G focus, collaborations with Alphabet, and future growth plans

From Nasdaq: 2024-11-04 08:21:00

QUALCOMM Inc. (QCOM) is a leader in the semiconductor space, focusing on 5G technology. With a Zacks Rank #2, QCOM is set to release its Q4 fiscal 2024 earnings on Nov. 6, boasting an Earnings ESP of +0.48%. Positive earnings surprises and growth projections make QCOM an attractive investment.

Analysts predict Q4 fiscal 2024 revenues for QCOM to reach $9.90 billion, with a 14.7% year-over-year improvement. Adjusted EPS is estimated at $2.56, a 26.7% increase YoY. Positive earnings revisions for fiscal 2025 indicate further growth, with estimates showing an 8.2% and 8.4% rise in revenues and EPS, respectively.

QCOM’s collaborations with Alphabet Inc. aim to enhance AI solutions in the automotive sector. Snapdragon Cockpit Elite and Snapdragon Ride Elite platforms are gearing up for deployment in vehicles from major manufacturers. The company’s focus on EDGE networking and high-end chipsets like Snapdragon 8 Gen 3 chips positions QCOM well for future growth in various sectors.

With an attractive valuation compared to peers, QCOM offers a forward P/E of 15.12X and an ROE of 38.12%. Despite underperforming the S&P 500, analysts project a short-term upside potential of 30.6% for QCOM shares, with a price target range of $160-$270. An investment in QCOM could yield significant returns in the near future.



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