4. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Investors: 100
Jim Cramer reported that JPMorgan has lowered its price target for QUALCOMM Incorporated (NASDAQ:QCOM) from $230 to $210 per share but maintained its buy rating. Analysts noted that QUALCOMM Incorporated (NASDAQ:QCOM) is likely to lose modem revenue as Apple continues to develop and source its mobile components.
“JPMorgan cut its Qualcomm price target to $210 per share from $230 but kept its buy rating. The analysts said, however, that Qualcomm is about to lose modem revenue as Club name Apple Inc. (NASDAQ:AAPL) continues efforts to make and source mobile components in-house.”
QUALCOMM Incorporated (NASDAQ:QCOM) is backed by strong earnings, its leadership in 5G technology, and growing opportunities in the automotive and IoT markets. In its latest quarterly report, QUALCOMM Incorporated (NASDAQ:QCOM) reported revenues of $8.45 billion for Q3 2023, fueled by high demand for smartphone chips and increased royalty income.
As a major player in the 5G market, QUALCOMM Incorporated (NASDAQ:QCOM) stands to benefit from the rapid global adoption of 5G technology, which is essential for smartphones and many connected devices. QUALCOMM Incorporated (NASDAQ:QCOM) is also expanding into the automotive sector with its Snapdragon platform for advanced driver assistance systems (ADAS) and connected vehicles, presenting significant growth opportunities.
Additionally, QUALCOMM Incorporated (NASDAQ:QCOM) is forming strategic partnerships with leading tech companies to enhance its market position and drive innovation. Recent announcements about new automotive partnerships and advancements in 5G technology underscore QUALCOMM Incorporated (NASDAQ:QCOM)’s commitment to future growth, supporting a strong bullish outlook on its prospects.
Aristotle Capital Value Equity Strategy stated the following regarding QUALCOMM Incorporated (NASDAQ:QCOM) in its Q2 2024 investor letter:
“QUALCOMM Incorporated (NASDAQ:QCOM), a leading wireless communications technology company, was the largest contributor for the quarter. After a period of weaker global demand for smartphones (driven by a slowdown in China) and elevated channel inventory, demand from Chinese handset manufacturers accelerated 40% year‐over‐year. More importantly, in our opinion, Qualcomm continues to execute on a previously identified catalyst of shifting its business mix beyond smartphones.
The company announced increased progress for its automotive and Internet of Things (IoT)solutions. Within auto, the increase in vehicle content has resulted in 35% year‐over‐year revenue growth, with a design win pipeline of ~$45 billion, keeping the company on track to achieving ~$4 billion in auto‐related revenues by 2026. In recent years, despite persistent threats of insourcing from large clients (most notably Apple), Qualcomm has been able to retain its high market share in handsets while simultaneously expanding in non‐smartphone devices.
We believe this progress is a testament to Qualcomm’s history of high (and productive) R&D spending, resulting in technological superiority. We believe Qualcomm’s technologies will continue to benefit as the world stays on a path toward a proliferation of connectivity between varying devices and as AI applications extend from the cloud to on‐device.”
