Qualcomm expects $8 billion in automotive chip revenue and $4 billion in PC chip sales by fiscal 2029, it said at an investor event held in New York on Tuesday.
Qualcomm remains a strong semiconductor investment, replacing Intel with a conservative IT play due to its high free cash flow, dividend growth, and significant share buybacks. Despite a recent dip, Qualcomm's Q4 earnings beat expectations with an EPS of $2.69 and revenue of $10.24B. Qualcomm's Magic Formula score of 30.9, though lower than 2023, still indicates strong returns on invested capital and earnings yield.
Qualcomm posted $10.2 billion in Q4 revenue (+18% YoY) with 35% YoY EPS growth. Record $899 million in automotive revenue (+68% YoY), driven by new vehicle content and AI platforms. IoT revenues grew 24% sequentially, powered by new product launches and normalized channel inventory.
Despite strong 4Q FY2024 earnings, Qualcomm's stock fell below its pre-earnings release level due to a broader semi sector pullback and rising geopolitical risks under Trump's administration. 1Q FY2025 outlook indicates a strong growth momentum continues, driven by the Snapdragon 8 Series, topping all market consensuses. The company forecasts a "mid-single-digit growth" in QCT Handset revenue (60% of total revenue in 4Q), despite the absence of Huawei revenue in its 1Q FY2025 guidance.
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