Latest news with #AkashPalkhiwala
Yahoo
29-05-2025
- Business
- Yahoo
QCOM Mixed Growth Outlook Leads Seaport to Start Coverage with Neutral Call
Seaport Research analyst Jay Goldberg recently initiated coverage of QUALCOMM Incorporated (NASDAQ:QCOM) with a Neutral rating and no price target. QCOM develops and sells foundational technologies for the wireless industry. In an investor note, the analyst noted that Qualcomm's core market was not growing, and it was losing share there on multiple fronts. The analyst added that the company's efforts to diversify beyond mobile were mixed and would all take years to materialize. Seaport saw a lack of any serious near-term catalyst for the shares. A technician testing the latest 5G device, demonstrating the company's commitment to innovation. At the end of April, the firm forecasted fiscal Q3 revenues of $9.9 billion to $10.7 billion and non-GAAP EPS of $2.60 to $2.80. QCT revenues are expected to range between $8.7 billion and $9.3 billion, with year-over-year growth of approximately 12%, led by handsets, IoT, and automotive segments. This includes 10% growth in handset revenues and 15%-20% growth in IoT and automotive revenues. CFO Akash Palkhiwala has acknowledged ongoing monitoring of macroeconomic conditions, including tariffs, which are incorporated into the guidance. While we acknowledge the potential of QCOM, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than QCOM and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 33 Most Important AI Companies You Should Pay Attention To and 30 Best AI Stocks to Buy According to Billionaires Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
QCOM Q1 Earnings Call: AI, Automotive, and IoT Drive Revenue Above Expectations
Wireless chipmaker Qualcomm (NASDAQ:QCOM) beat Wall Street's revenue expectations in Q1 CY2025, with sales up 16.9% year on year to $10.98 billion. The company expects next quarter's revenue to be around $10.3 billion, close to analysts' estimates. Its non-GAAP profit of $2.85 per share was 1% above analysts' consensus estimates. Is now the time to buy QCOM? Find out in our full research report (it's free). Revenue: $10.98 billion vs analyst estimates of $10.65 billion (16.9% year-on-year growth, 3.1% beat) Adjusted EPS: $2.85 vs analyst estimates of $2.82 (1% beat) Adjusted EBITDA: $4.08 billion vs analyst estimates of $4.08 billion (37.2% margin, in line) Revenue Guidance for Q2 CY2025 is $10.3 billion at the midpoint, roughly in line with what analysts were expecting Adjusted EPS guidance for Q2 CY2025 is $2.70 at the midpoint, above analyst estimates of $2.68 Operating Margin: 28.4%, up from 24.9% in the same quarter last year Free Cash Flow Margin: 21.3%, down from 35.9% in the same quarter last year Inventory Days Outstanding: 144, up from 111 in the previous quarter Market Capitalization: $166 billion Qualcomm's first quarter results were shaped by ongoing expansion in its handset, automotive, and IoT (Internet of Things) segments, with management emphasizing the growing adoption of AI (artificial intelligence) across these areas. CEO Cristiano Amon noted that the company's technology leadership and product breadth, particularly in premium Android smartphones and automotive digital platforms, contributed to revenue gains, while new partnerships and product launches in edge AI and smart devices added to momentum. Looking ahead, management's guidance reflects both optimism and caution, citing potential headwinds from macroeconomic uncertainty and evolving global trade policies, including tariffs. CFO Akash Palkhiwala explained that guidance incorporates current expectations around tariffs, stating, 'There is uncertainty around the impact of the global trade landscape on demand across our businesses.' The company aims to offset these risks by advancing its AI-enabled platforms and expanding in non-handset markets such as automotive, PCs, and industrial IoT. Qualcomm's management attributed the quarter's outperformance to strong product demand and successful execution in multiple end markets, while also highlighting key strategic investments and partnerships. AI Platform Expansion: Management emphasized the rapid adoption of smaller, on-device generative AI models, with Snapdragon platforms running several new AI models from industry leaders. This trend is expected to enable new applications and drive demand for Qualcomm's edge computing solutions. Automotive Pipeline Growth: The automotive segment saw 59% year-over-year growth, underpinned by new design wins—including advanced driver-assistance systems (ADAS)—and expanded collaborations with automakers such as Nio and Zeekr. Leadership cited digital cockpit and ADAS content as primary growth drivers. IoT Industrial Upswing: Management highlighted notable performance in industrial IoT, attributed to a shift from microcontrollers to more advanced microprocessors with AI capabilities. Strategic acquisitions of Edge Impulse and FocusAI are intended to further strengthen Qualcomm's AI and analytics offerings at the edge. Premium Android Handset Momentum: The Snapdragon 8 Elite platform continued to gain traction, with 90 flagship Android smartphone designs and growing demand in the premium tier—especially in China where subsidies boosted higher-end device sales. Management described this as an ongoing multi-year trend. PC and XR Expansion: Snapdragon-based PCs and smart glasses (XR) are expanding, with more than 85 PC designs in development and over 750 native applications now running on Snapdragon X. Management believes these categories are moving toward broader adoption as AI use cases mature. Management's outlook for the coming quarters centers on expanding AI integration across devices, increased diversification outside traditional handsets, and close monitoring of macroeconomic and trade dynamics. AI as a Revenue Catalyst: Management believes that the proliferation of on-device AI will drive adoption of Qualcomm's platforms in smartphones, PCs, automotive, and IoT, with expectations for increased content per device and new use cases. Automotive and Industrial Growth: Ongoing investment in the automotive digital chassis and industrial IoT platforms—supported by recent acquisitions—are viewed as significant contributors to mid-term revenue and margin growth. Tariff and Macro Uncertainty: The company acknowledged risks from tariffs and fluctuating demand in global markets, stating that guidance factors in current trade impacts but noting that conditions remain dynamic and could present further challenges. Joshua Buchalter (TD Cowen): Asked about assumptions regarding handset market guidance and the impact of tariffs; management said guidance reflects current tariff impacts but no material order pull-ins have been seen. Samik Chatterjee (JPMorgan): Inquired about drivers of IoT outperformance and acquisition strategy; management pointed to industrial sector strength and a focus on scaling AI capabilities through targeted acquisitions. Timothy Arcuri (UBS): Questioned China market trends amid tariffs and competition; management said premium device demand is expanding and no meaningful loss of design wins has occurred. Stacy Rasgon (Bernstein): Probed reasons for slight decline in chipset gross margins; management attributed this to product mix between lower and higher tiers rather than structural issues. Ross Seymore (Deutsche Bank): Asked about the impact of declining share at a major U.S. customer on operating expenses; management said investment is being shifted from handsets toward automotive and IoT growth areas while maintaining cost discipline. In the coming quarters, the StockStory team will be monitoring (1) the pace of AI feature adoption and design wins in new device categories, (2) the trajectory of automotive and industrial IoT revenue following recent product launches and acquisitions, and (3) any changes in global trade policy or tariffs that could affect supply chains or demand. Execution on expanding PC and XR platform partnerships will also be a key indicator of Qualcomm's ability to diversify its revenue base. Qualcomm currently trades at a forward P/E ratio of 12.8×. In the wake of earnings, is it a buy or sell? See for yourself in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Mid East Info
20-02-2025
- Business
- Mid East Info
Qualcomm joins UAE's NextGen FDI program to drive advancements in 5G, AI and IoT - Middle East Business News and Information
Qualcomm establishes presence in Abu Dhabi, joins the NextGen FDI Program and leverages Venture arm to identify and scale pioneering start-ups. HE Al Zeyoudi: 'Qualcomm's innovations in 5G, AI and the Internet of Things are already playing a crucial role in advancing our digital transformation and we are excited about the potential to extend their impact through the NextGen FDI initiative.' Akash Palkhiwala: 'The latest advancements in 5G, AI and the Internet of Things are the catalysts for technology ecosystem growth and establishing our presence in Abu Dhabi puts Qualcomm at the center of helping advance the UAE's digital ambitions.' Abu Dhabi, UAE –February 2025: The UAE Ministry of Economy has announced that Qualcomm Technologies, Inc., a leading developer of advanced wireless technologies, advanced computing and AI, has joined its NextGen FDI initiative. Through the program, which was launched in 2022 in order to attract technology driven companies to the UAE, Qualcomm has established a presence in Abu Dhabi and is broadening its engagement with local ecosystem players. Founded in San Diego, California, Qualcomm Technologies is a major player in wireless technology and semiconductors, and has been at the forefront of driving 3G, 4G and 5G technologies, high-performance, low-power computing and AI. Recently, Qualcomm Technologies has collaborated with UAE-based AI firm G42 to integrate its Cloud AI products into G42's Core42. In addition to establishing a presence in Abu Dhabi, Qualcomm Technologies will also support with the NextGen FDI initiative through its investment arm Qualcomm Ventures, which focuses on early to growth-stage companies across sectors such as 5G, AI, automotive, IoT, and Cloud and Enterprise. The collaboration will involve assessing and potentially investing in promising NextGen FDI startups, and the NextGenFDI initiative will provide support to any Qualcomm Ventures' portfolio companies looking to expand in the UAE and the region. Qualcomm Ventures boasts more than 150 active portfolio companies and numerous successful exits. His Excellency Dr Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, welcomed the onboarding of Qualcomm Technologies as a major milestone for the UAE's NextGen FDI Program, offering a significant boost to the nation's innovation ecosystem and economic efforts to become a global technology hub. HE Al Zeyoudi said: 'We met Qualcomm at CES 2025 in Las Vegas and were pleased to know of their plans for the UAE. Qualcomm's innovations in 5G, AI and the Internet of Things are already playing a crucial role in advancing our digital transformation and we are excited about the potential to extend their impact through the NextGen FDI initiative. The UAE's digital ambitions require the contribution of leading global entities and Qualcomm Technologies can support the development of our 5G and AI capabilities, which will provide a new range of possibilities for businesses, consumers and government services. Qualcomm Technologies greater presence here will underpin our position as a global centre for innovation and technology and accelerate our digital transformation journey.' On behalf of Qualcomm Technologies, Akash Palkhiwala, Chief Financial Officer and Chief Operating Officer, stated: 'Qualcomm is proud to be present now in Abu Dhabi and to support the NextGen FDI initiative. The latest advancements in 5G, AI and the Internet of Things are the catalysts for technology ecosystem growth. Qualcomm's presence in Abu Dhabi puts us at the centre of helping advance the UAE's digital ambitions. Qualcomm is already working closely with UAE companies to drive local and global technology solutions based on our solutions; most recently Core42 announced the launch of its Inference as a Service powered by Qualcomm Cloud AI Accelerators and Inference Suite, and we look forward to seeing even more collaborations in the future.' Launched in 2022, the NextGen FDI initiative is designed to attract high-growth and high-potential advanced technology companies to the UAE. The initiative provides fast-tracked and simplified licensing, visa processes, accelerated access to banking services, and competitive rates for commercial and residential leases. It has already welcomed global innovators across sectors such as robotics, precision fermentation, hybrid aviation, and renewable energy.
Yahoo
07-02-2025
- Business
- Yahoo
Qualcomm Falls on Concerns About Slowing Smartphone Growth
(Bloomberg) -- Shares of Qualcomm Inc., the world's biggest seller of smartphone processors, fell on investor fears that demand for new handsets will stall in the coming year. Citadel to Leave Namesake Chicago Tower as Employees Relocate Transportation Memos Favor Places With Higher Birth and Marriage Rates State Farm Seeks Emergency California Rate Hike After Fires NYC Sees Pedestrian Traffic Increase in Congestion-Pricing Zone How London's Taxi Drivers Navigate the City Without GPS Revenue in the period ending in March will be $10.3 billion to $11.2 billion, the company said Wednesday in a statement. Of that, the company's licensing business will generate $1.25 billion to $1.45 billion. That compares with an average analyst projection of $1.4 billion. The outlook for the technology license business, which is based on a projection of the number of phones sold, caused some analysts to question Qualcomm's view of the industry's prospects. Chief Financial Officer Akash Palkhiwala said the company expects the overall market to be either flat in 2025 or increase in low single digits. That projection doesn't include any revenue from China-based Huawei Technologies Co., which is renegotiating its license with Qualcomm, executives said. Qualcomm's outlook for the business is in line with analyst firm IDC, which projected that worldwide smartphone shipments would be in the 'low single digits' in 2025 and for a few years beyond. The shares were down 3.9% in New York on Thursday. The stock has gained about 10% this year. Other smartphone stalwarts Arm Holdings Plc and Skyworks Solutions Inc. also fell in late trading after they gave forecasts that fell short of some analysts' projections. The results from the companies added to the investor concern about the industry's overall growth. The San Diego-based chipmaker collects fees calculated as a percentage of the cost of a handset regardless of whether the phone maker uses its chips. Qualcomm won those rights in intellectual property lawsuits around the world, establishing that it can charge royalties on its patents that cover the basic way that phones connect with networks. While the overall market for smartphones is no longer expanding as rapidly as in the past, Qualcomm's strength as the provider of semiconductors for expensive devices such as Samsung Electronics Co.'s Galaxy range helps boost its growth. The company's efforts to expand outside of its central market into automotive and personal computers is also helping spur revenue. In the fiscal first quarter, Qualcomm reported that profit of $3.41 a share, excluding some items. Revenue rose 17% to $11.7 billion. Analysts had estimated earnings of $2.97 a share and sales of $10.9 billion. Phone-related sales increased 13% to $7.57 billion in the period end Dec. 29, compared with the average projection of $7 billion. Revenue of chips used in vehicles was $961 million. Connected-device chip sales were $1.55 billion. One of Qualcomm's biggest customers, Apple Inc., uses the company's modem chip in the iPhone, but is working to replace that component with an in-house version. Qualcomm, which has held onto business from Apple for longer than many had predicted, has repeatedly cautioned investors that over time that source of revenue will go to zero. Counterbalancing that, Samsung, which also makes its own phone chips, has increased the amount of models that are based on the US chipmaker's components. (Updates shares in sixth paragraph) Orange Juice Makers Are Desperate for a Comeback Believing in Aliens Derailed This Internet Pioneer's Career. Now He's Facing Prison Inside Elon Musk's Attack on the US Government Amazon and SpaceX Want In on India's Satellite Internet Market Elon Musk Inside the Treasury Department Payment System ©2025 Bloomberg L.P. Sign in to access your portfolio
Yahoo
06-02-2025
- Business
- Yahoo
Arm, Qualcomm stocks fall as investors wait for AI to drive new demand for smartphones, PCs
Arm Holdings (ARM) and Qualcomm (QCOM) stocks each fell more than 4% Thursday as their quarterly results showed signs the AI boom isn't yet driving a surge in demand for the consumer devices powered by the companies' chips. Despite their above-forecast quarterly earnings results the day prior, investors signaled they aren't so patiently waiting to see if artificial intelligence will drive a new wave of demand for consumer devices that rely on the companies' chips. The pair of semiconductor companies — which are, coincidentally, engaged in an ongoing legal battle with one another — saw their stocks drop for various reasons. Arm issued in-line but slightly softer-than-expected earnings guidance for the current quarter, with the company saying it expects adjusted earnings per share of $0.48-$0.56 in its fiscal fourth quarter, versus the $0.53 expected, according to Bloomberg data. Revenue in its current quarter is set to come in between $1.18 billion-$1.28 billion; Wall Street forecasts were for revenue to hit $1.23 billion, the midpoint of that range. Arm also lowered the top range of its revenue outlook for its fiscal year 2025 to $4.04 billion from $4.1 billion, though it raised the bottom of the range to $3.9 billion from $3.8 billion. In other words, wrote Citi analyst Christopher Danley, a "healthy beat" in the current quarter was offset by "slightly softer" guidance for the current quarter. Arm's softer guidance raised fears of an AI infrastructure spending slowdown. While cheaper models like DeepSeek could drive down the cost of AI models and, in turn, benefit demand for smartphones and PCs, that cost-efficiency could mean cloud providers spend less money buying AI chips for data centers. Nvidia's (NVDA) Arm-based Grace CPUs are used in its latest servers alongside its Blackwell AI chips. At the same time, Qualcomm's outlook on revenue from its chips for smartphones showed growth in that segment slowing in the March period. The company's handset segment saw revenue in its fiscal first quarter that ended Dec. 31 grow 13% to a record $7.6 billion. CFO Akash Palkhiwala said that segment will grow 10% in the current quarter. 'On a sequential basis, the decline in QCT handset [smartphone] revenues is primarily driven by seasonality and shipments to Apple,' Palkhiwala said. Apple (AAPL) has shifted to developing in-house chips for its smartphones, rather than relying on Qualcomm. JPMorgan analyst Samik Chatterjee said the magnitude of Qualcomm's earnings beat for the December quarter was 'not enough to overwhelm investor concerns around extraneous factors,' such as Apple's pivot and the expiration of its deal last year with Chinese smartphone maker Huawei. Wall Street analysts said an AI-driven demand cycle for smartphones could boost the companies amid their softer outlooks. 'The advent of lower-cost AI models like DeepSeek are expected to accelerate the spread of inferencing at the edge, through PCs, smartphones & IoT devices,' wrote Jefferies analyst Janardan Menon in a Thursday note. 'AI-based applications are being developed for these devices faster, including industry-specific AI models that can be deployed locally for low latency and security.' 'We expect this trend to benefit Arm both from rising demand for more powerful v9 cores [a powerful processing unit used within semiconductors], and increased demand for these devices themselves, most of which are expected to be Arm-based,' he added. In other words, AI for smartphones is coming, and that could drive demand, in turn boosting business for Arm, which sells licenses for its computing chip designs. Speaking about Qualcomm, Citi's Christopher Danley was more skeptical of an impending AI-driven demand wave for smartphones. 'While the handset market appears decent, we believe a handset upgrade cycle is at least a year away given a lack of a 'killer app.' We have historically upgraded QCOM during a handset upgrade cycle, but we don't believe one is imminent," he said. Despite Arm's dip Thursday, shares are still up nearly 130% from this time last year. Qualcomm is up a much more modest 17% from the prior year. Arm stands to benefit from the recently announced Stargate project. Arm was named a key technology partner in the massive AI infrastructure project backed by its parent company SoftBank (SFTBY), along with Oracle (ORCL) and OpenAI. The three said the project will invest $500 billion over four years. And while fears of an AI spending slowdown persist, Big Tech is still spending big on AI infrastructure. Microsoft (MSFT), Meta (META), and Google (GOOG) together are set to spend nearly $230 billion in capital expenditures driven by AI in 2025. Laura Bratton is a reporter for Yahoo Finance. Follow her on Bluesky @ Email her at
