Qualcomm Jumps as AI Creates a Smartphone Rebound

Qualcomm was the latest chipmaker to release its results and an improvement in the smartphone market, and shares jumped to record highs on Thursday.

QCOM – Daily Chart

QCOM – Daily Chart

QCOM shares opened on Thursday around the previous all-time high of $177.64 and have set new highs at $180. Whether this breakout holds up will now determine the path ahead.

Qualcomm shares rose more than 4% on Thursday after the smartphone-focused chipmaker highlighted an AI-fueled rebound in demand, especially in China, after a two-year slump.

Sales to Chinese smartphone makers were up 40% in the first half of the company’s fiscal year. Buyers have been gravitating toward higher-priced devices that can accommodate AI assistants.

“We’re optimistic that numbers can be driven higher, given last year’s muted Android cycle and the likelihood of IoT improvement as inventory normalises,” analysts at Wolfe Research said. According to LSEG data, at least 14 analysts raised their price targets on Qualcomm after the results. Qualcomm also released its Snapdragon range of chips, improving the performance of mobile devices.

Qualcomm reported adjusted earnings of $2.44 per share with revenue of $9.39 billion, beating analyst expectations of $2.32 and $9.34B.

“Given the state of some recent peer reports we believe there was some nervousness around Qualcomm in this print, and yet the company delivered with certainly the best wireless-related results so far this earnings season,” Bernstein analysts wrote after the earnings release.

Management guidance for the company was in line with current expectations, which also helped to soothe any fears over the company’s path. Qualcomm is the latest chipmaker to release decent earnings against a backdrop of concerns about a downturn in the sector.

The company highlighted a strong performance in its segments, with record wireless sales and increasing AI-enabled shipments. It also noted strong growth in the automotive sector.

QCOM shares have set new all-time highs and need to hold the current breakout to see further gains in the weeks ahead.

Recent News
Start Trading Now !
Try our demo account for free to learn trading. When you’re ready, switch to a live account and start trading for real.
Popular posts
ATFX

Account Registration Unavailable

Please note that you may be accessing this page from outside Australia. For retail and professional inquiries regarding AT Global Markets (Australia) Pty Ltd, kindly reach out to us at [email protected].

ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://www.atfx.com/en/ to proceed.

ATFX

Restrictions on Use

Products and Services on this website are not suitable for Hong Kong residents. Such information and materials should not be regarded as or constitute a distribution, an offer, solicitation to buy or sell any investments.

使用限制: 本網站的產品及服務不適合香港居民使用。網站內部的信息和素材不應被視為分銷,要約,買入或賣出任何投資產品。

ATFX

Restrictions on Use

AT Global Markets (UK) Limited does not offer trading services to retail clients.
If you are a professional client, please visit https://www.atfxconnect.com/