Qualcomm Inc (NASDAQ:QCOM) is making waves in the stock market due to analyst Ming-Chi Kuo’s optimistic outlook on the company’s Snapdragon 8 Gen 4 shipments. While concerns about Apple Inc (NASDAQ:AAPL) developing its own 5G chips have weighed on Qualcomm’s stock price, Kuo believes that the company is poised for significant growth in late 2024 and beyond.
At Extreme Investor Network, we believe that Qualcomm’s future success is tied to several key factors. Kuo points to the rising demand for AI smartphones and AI PCs, as well as the adoption of Taiwan Semiconductor Manufacturing Co’s (NYSE:TSM) 3-nanometer process. These trends, along with higher System on Chip (SoC) prices, are expected to drive Qualcomm’s growth in the coming years.
Specifically, Kuo predicts that Qualcomm’s Snapdragon 8 Gen 4 (SD8G4) will see a 50% increase in shipments in the second half of 2024, with an average selling price (ASP) of $180. This surge in shipments is attributed to a longer shipping period, increased demand from Samsung, and favorable market dynamics in China.
Chinese smartphone brands currently dominate the market, with a projected 80% market share during the recent Golden Week holiday sales. As the market share of high-end smartphones in China continues to grow, Qualcomm is well-positioned to benefit from this trend.
Overall, Kuo anticipates that Qualcomm’s success will continue into 2025, with Chinese smartphone shipments expected to grow by 3% to 280 million units. This growth, combined with ongoing demand for high-end smartphones, bodes well for Qualcomm’s future profitability.
As of the latest check, QCOM stock is up 3.32% at $175.63, reflecting investor optimism about the company’s future prospects. With a positive outlook from analysts at Mizuho, Morgan Stanley, and JP Morgan, Qualcomm is a stock to watch in the coming months.
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