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Tag: QCOM Stock

  • Qualcomm Inc. (QCOM) Climbs on Upbeat Sales Forecast as Business Diversification Pays Off

    The wireless chipmaker, Qualcomm Inc. (QCOM) posted its earnings for the second quarter of fiscal 2022 on April 27, after the market closed. While the earnings and revenue both were better-than-expected, it was the upbeat sale forecast that had investors celebrating.

    Source: ASUG

    Thus, the earnings release led the stock on a bullish roll in the pre-market as it went on to add a further 8.07%. QCOM was then trading at a price of $146.00 apiece in the session while an active volume of 38,270 shares exchanged hands.

    QCOM’s Q2 2022 Performance

    For the fiscal Q2 2022, the chipmaker posted a profit of $3.21 a share on sales of $11.16 billion. Hence, the earnings went up by a staggering 69% YOY while sales marked an increase of 41%. Comparatively, analysts were expecting a profit of $2.94 per share on sales of $10.63 billion for the quarter.

    Additionally, the company also returned $1.7 billion to stockholders in the form of share repurchases and cash dividends.

    Future Guidance

    Providing guidance for the ongoing quarter, the company said it expects revenue between $10.4 billion and $11.3 billion. The revenue outlook lies well ahead of the analysts’ expectations of $9.97 billion for the quarter.

    Not only the revenue, but QCOM’s earnings expectations are also well above the analysts’ projections. The company expects profit to be in the range of $2.75 to $2.95 per share while analysts were expecting $2.60 a share for the third quarter of fiscal 2022.

    Business Diversification Amid Declining Demand

    QCOM’s main products include smartphone processors and a chip that connects iPhones to high-speed data networks. With its main target being smartphones, analysts were expecting a decline in the growth of the company amid the falling demand for smartphones.

    The global smartphone market has had its worst drop since the virus outbreak recently. The resurgence of Covid-19, Ukraine invasion, China lockdowns, and rising inflation have been affecting the spending on smartphones and it is expected to continue affecting the demand.

    Therefore, with declining demand, the chipmaker’s move into new markets has been a lifesaver. According to CEO Cristiano Amon, QCOM is no longer just a communications company serving a single industry. With aggressive goals for growth, the company had previously said it has the potential to top $46 billion in revenue by 2024.

    Conclusion

    QCOM stock soared high in the pre-market following the upbeat quarterly results of the company on top of a bullish outlook and business diversification.

  • Three Best Semiconductor Stocks to Investment in the long-term

    Three Best Semiconductor Stocks to Investment in the long-term

    The semiconductor stocks are bullish as we see the digital world move one step ahead.

    The semiconductor market is going to get bigger in the next few years. During the pandemic, the semiconductor stocks performed extremely well last year. Consumer electronics sales are increasing and trends such as cloud computing and e-gaming have created massive opportunities for semiconductors and their equipment market.

    Analysts believe that due to the rising bullish trends in the semiconductor sector, the stocks will have another high year in 2021. Moreover, the growth and infrastructural development of the 5G system will pave way for cloud services.

    So, let’s have a look at the three best semiconductor stocks for long-term investment.

    Advanced Micro Devices (AMD)

    Advanced Micro Devices (AMD) is one of the most decorated and well-positioned semiconductor firms in the market. AMD has staged an amazing turnaround over the past five years, powered by new products and improved profitability.

    With the booming demand for semiconductors, AMD has been at the forefront of this profitable market. In Q4 2020, the company reported better-than-expected results surpassing Wall Street estimates. For the three months ended in Dec. 2020, AMD recorded sales of $3.24 billion, compared to estimates sales of $3.02 billion. While on the yearly basis, the sales were up by 53%. The massive spike in sales was driven by the strong demand for PC, gaming, and data center products.

    The company announced the portfolio of AMD Ryzen 5000 Series Mobile Processors. Whereas, on Oct. 8, AMD launched its next-generation Ryzen processors for desktop computers. The company describes its Ryzen 5000 series CPU as the “fastest gaming CPUs in the world.”

    Heading forward, the company expects its revenue of around $3.2 billion for the current, which would be 79% higher than last year. On the other side, Wall Street anticipates AMD to record sales of $2.73 billion.

    QUALCOMM (QCOM)

    QUALCOMM (QCOM) is another prominent stock in the semiconductor market with much potential in the long-term. The company continues to lead the way as 5G networks blanket cities far faster than expected. For most of 2020, QCOM was on the bullish side.

    In the recent Q1 2021 outcomes, the semiconductor firm produced mixed results. The company reported earnings of $2.17 per share compared to an estimated $2.10. While it lagged the revenues estimates by a little margin, with net revenue of around $8.23 billion. The overall sales grew 63% year-over-year while earnings soared over 119%.

    The news that may be hunting QCOM investors is the partnership deal of the company with Apple. There have been reports that the iPhone maker could cut out Qualcomm and make its own iPhone modem chips.

    NXP Semiconductors (NXPI)

    The semiconductor manufacturer, NXP Semiconductors (NXPI) produces high-performance, mixed-signal chips for the auto, mobile payment, and other end markets. The company is well-positioned to benefit from the market share in both the mobile payment and auto markets in 2021.

    NXP will be a bigger part of the electric and autonomous vehicle technology and would also bring long-term investing opportunities. In the recent quarterly update, the company reported better-than-expected Q4 2020 results. The earnings per share were $2.68, surpassing the Zacks Consensus Estimate of $2.11. This represents an 11.2% jump from the last year and 57.6% sequentially. While the net sales were $2.51 million, 1.7% higher than the estimates.

    As we head forward, analyst Angelo Zino anticipates NPX’s revenue growth of 12% and EPS growth of 30.9% during 2021. So, NXP Semiconductors (NXPI) is one of the long-term options for investors.