Why Qualcomm Stock Could Still Be a Great Value Now

Saturday, 25 May 2024, 07:25

Qualcomm, a leader in mobile connectivity chips, is experiencing a surge in stock price in 2024. Despite challenges in the smartphone market, Qualcomm's revenue is outperforming with high-end 5G connectivity chips. The upcoming Snapdragon X Elite laptop chips and entry into the PC market present new growth opportunities, indicating potential for solid earnings growth and profit margins in the near future.
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Why Qualcomm Stock Could Still Be a Great Value Now

Autos are in overdrive, and are PCs ready to rev?

Qualcomm's revenue is looking positive as its high-end 5G chips contribute to outperforming the smartphone market.

Its foray into the PC market with Snapdragon X Elite laptop chips represents an opportunity for growth and revenue expansion, aiming to compete with Intel and AMD in the x86 architecture space.

It's all about margin

Qualcomm's profitability remains robust even during downturns, with new sales from PC and automotive chips expected to boost profit margins in the future.

If higher ASPs and new growth outlets materialize, Qualcomm could see low-teens earnings growth, making it a potentially valuable investment.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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