Qualcomm Q4: Strong Growth With $15 Billion Stock Repurchase Authorization
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Qualcomm has announced strong Q4 results and a $15 billion stock repurchase authorization. However, concerns remain over Apple's potential shift to in-house 5G modems, which could impact Qualcomm's future growth. Despite potential upsides from Snapdragon 8 Elite and AI PC market growth, Apple's transition could reduce Qualcomm's revenue by 3% from FY26 to FY28.

November 07, 2024 | 4:15 pm
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NEGATIVE IMPACT
Qualcomm's strong Q4 results and $15 billion stock repurchase authorization are overshadowed by concerns over Apple's potential shift to in-house 5G modems, which could impact future growth.
Despite Qualcomm's strong financial performance and stock repurchase plan, the potential loss of Apple as a customer for 5G modems is a significant risk. This could lead to a 3% revenue reduction from FY26 to FY28, impacting Qualcomm's growth prospects.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Apple's potential shift to in-house 5G modems could impact Qualcomm's revenue, highlighting Apple's strategic move to reduce dependency on external suppliers.
Apple's development of in-house 5G modems represents a strategic move to reduce reliance on Qualcomm, potentially impacting Qualcomm's revenue. This move could strengthen Apple's control over its supply chain and product development.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 70