Record chip sales from Qualcomm, but future forecast breaks morale

📌 What Happened?

Qualcomm outperformed Wall Street expectations with its fiscal second-quarter results. The company beat the market forecast of $2.82, announcing earnings of $2.85 per share. On the revenue side, it exceeded analysts' expectations of $10.66 billion with $10.84 billion. But Qualcomm's announcement of a revenue forecast for the current quarter at $10.3 billion put pressure on the stock.

Phone chip sales, the company's largest revenue item, rose 12% year-on-year to $6.93 billion, thanks to demand from giant customers such as Samsung and Apple. However, Qualcomm, which generated revenue growth of 59% in the automotive segment and 27% in the IoT space, grew the overall total of chip revenues by 18% to $9.47 billion. License revenues (QTL) remained stable at $1.32 billion.

CEO Cristiano Amon stressed that strategic investments in areas such as automotive and IoT will continue to offset losses from major customers such as Apple. The company is also trying to create new growth areas through partnerships with Meta and AI-focused projects.

This quarter generated a total return on capital of $2.7 billion, with a stock buyback of $1.7 billion and a dividend of $938 million. Qualcomm shares continued to trade at $148.46 following the announcement.

🧠 Expert Review

Qualcomm's strong performance in chip sales and the potential for expansion in new segments paint a positive picture for medium-long term growth. But a low in guidance can create short-term pressure. The decreasing reliance on Apple in particular over time and the potential for growth in Meta, automotive and IoT areas indicate that the diversification strategy is moving in the right direction. Indicators such as profitability and return on capital continue to support the company's balance sheet strength. A cautious optimism in this environment may be appropriate for investors.

✅ Take Action

Qualcomm's expanding product range and strong balance sheet could offer long-term investment opportunities. It is possible to turn declines into a strategic buying opportunity.
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🛑 Disclaimer

This content is created by Investment Desk AI and is not Investment Advice. You should make your decisions based on your own research and professional advisors.

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