Qualcomm Q1 Earnings Preview: Analysts Focus On Automotive Growth, AI, Stock Valuation
Portfolio Pulse from Surbhi Jain
Qualcomm Inc (NASDAQ:QCOM) is set to report Q1 earnings on Jan. 31 with expectations of $2.37 EPS and $9.51 billion in revenues. Analysts are focusing on Qualcomm's growth in the automotive sector, AI capabilities, and stock valuation. The company's Snapdragon 8 Gen 3 chips and Oryon series for laptops show its competitive edge. Qualcomm's automotive business grew 23% sequentially in fiscal Q4, and its AI technology is expected to drive demand for semiconductor chips. Despite a forward P/E of 14.21, lower than peers Intel (NASDAQ:INTC) and Texas Instruments (NASDAQ:TXN), Qualcomm is seen as undervalued. Analysts maintain a Buy rating with a price target of $135.97, with recent targets up to $175. Qualcomm's stock closed at $150.44 on Jan. 29.
January 30, 2024 | 3:20 pm
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NEUTRAL IMPACT
Intel, with a higher forward P/E ratio compared to Qualcomm, may be impacted by Qualcomm's earnings report, as investors compare valuation metrics between the two companies.
Intel is not the main focus of the article, but its comparison to Qualcomm in terms of P/E ratio could lead investors to reassess its valuation. The impact is likely to be moderate and indirect.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Texas Instruments, like Intel, has a higher forward P/E ratio than Qualcomm and may see indirect impact from Qualcomm's earnings, as valuation comparisons are drawn by investors.
Texas Instruments' mention in the context of P/E ratios may lead to indirect impact on its stock as investors compare it with Qualcomm's valuation post-earnings report.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Qualcomm is expected to report strong Q1 earnings, with a focus on automotive growth and AI. Analysts are optimistic, reflected in a Buy rating and a high price target, indicating potential for stock appreciation.
The positive outlook from analysts, coupled with Qualcomm's advancements in AI and automotive sectors, suggests a strong potential for stock appreciation in the short term, especially if earnings meet or exceed expectations.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100