Valued at $157.4 billion, Qualcomm (QCOM) has positioned itself as a strong contender in the semiconductor space by leading in mobile processors, making a significant push into artificial intelligence across devices, and expanding into automotive, internet of things, and data centers. The company just reported strong fiscal third quarter results and is still on track to meet its ambitious fiscal 2029 goal of $22 billion in combined automotive and IoT revenue.
If the company’s current trajectory continues, it could be one of the best growth plays in the semiconductor industry. QCOM stock is down 3.8% year-to-date, compared to the tech-heavy Nasdaq Composite Index’s ($NASX) gain of 10.9%. Let’s find out if QCOM stock is a buy now on the dip.
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In its fiscal 2025 third quarter, the company reported adjusted revenue of $10.4 billion, up 10% year-over-year. Adjusted earnings per share of $2.77 increased by 19% YoY, placing the company near the top of its guidance range. Qualcomm CDMA Technologies (QCT), the company’s core chipset business, generated $9 billion in revenue, up 11% YoY, with Automotive (up 21%) and IoT (up 24%) showing particularly strong growth. Qualcomm’s licensing segment, Qualcomm Technology Licensing (QTL), generated $1.3 billion in revenue.
Qualcomm’s Snapdragon Digital Chassis continues to win contracts in the automotive industry, with 12 new designs introduced this quarter and 50 vehicle launches planned for fiscal 2025. Qualcomm and Xiaomi (XIACY) have signed a multi-year agreement to collaborate on smartphones. Xiaomi’s Snapdragon 8-series processors will power multiple generations of flagship devices in China and around the world, with shipment volumes increasing year after year. The Snapdragon 8 Elite continues to set the standard for mobile innovation, particularly in enabling the transition to AI-powered smartphones. Qualcomm reports that 124 AI smartphone designs have been shipped or announced, and AI adoption is accelerating.
Qualcomm’s push into PCs is only a year old,…
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