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As the Maximum Informed Synthetic Intelligence investors know (AI), all these investments are not multibgeuros. In fact, some have had problems overcoming the S&P 500 the specified periods.
This is the case with the name of prominent Qualcomm semiconductor (Qcom -0. 99%). Despite the company that opens the trail of smartphone chips sets and turning in AI, investors were not noticed in this inventory in the midst of a slower update cycle and competitive concerns.
However, it may now have the catalyst, even though everything takes this inventory to new heights and beyond. Here is why.
It is true that now it would not seem a well -timed moment to be interested in Qualcomm because it faces its most serious competitive threats in decades. The company admitted that the Chinese giant of the Huawei generation did not have Qualcomm chips. In addition, Apple has implemented a plan to update the corporation chips on the iPhone until 2027, which the primary client potentially asks.
Qualcomm has prospered due to the update cycles, but with this last cycle, Qualcomm had problems. After the 5G update cycle has followed its course, the expansion in the revenue of Qualcomm has become negative. To face this trend, the company has turned AI in the hope that it causes the next update cycle. While Qualcomm’s back increases income, it has not yet matched the expansion faster than once higher than 5G update.
However, this can be replaced with the use of the AI that was shot thanks to the Deepseek advance. More consumers may now need to update to capitalize on the ability of AI. Since the combined segment remains the largest source of income in Qualcomm, this accumulates well for the company.
In addition, Qualcomm only brings to the smartphone sector. The company has long planned a global where consumers can use less smartphones. To this end, Qualcomm has turned the Internet of objects and automobile applications to bring communication technologies to other environments.
More recently, fleas also evolved to feed the PC. This resolution places the corporate at the direct festival with Apple and AMD and can only an opportunity to gain floor in the chips giant in Intel difficulty. These technologies position Qualcomm at the vanguard of AI and deserve to make their role in this industry even more important.
In addition, Qualcomm finance already had to obtain advantages of AI, and the last press release is verifying it.
In the first quarter of prosecutor 2025 (completed on December 29, 2024), a turnover of $ 11. 7 billion updates of 17% buildings compared to the same quarter of the year 2024. It was more quickly that 9% accumulates In the fiscal year in the fiscal year. 2024 and the 19% decrease in fiscal year 2023.
As expected, construction at the source of income also made Qualcomm more beneficial. The net profit of T1 to 3. 2 billion dollars that UPD builds up to 15% compared to last year’s degrees. A triplicate of the source of income tax expenses has slowed the expansion of benefits, however, this deceleration deserves not thinking about the good fortune of the company.
In addition, customers deserve not to discourage investors. In fact, the estimated billing of the moment at the time of $ 10. 3 billion to $ 11. 2 billion would constitute a sequential deceleration to 14% in the middle. However, in the last quarter, the company predicts up to $ 11. 3 billion in profits for the first quarter, a prediction that easily won. If this trend continues, the expansion of the gains source will accelerate.
In addition, the action is sold in a P / E relationship of around 18, the lowest of the main semiconductor companies. This means that if you can obtain advantages of the superior call for the characteristics of AI, a mixture of expansion and expansion can accumulate this stock.
Thanks to its market position and the recent advance of Deepseek, Qualcomm can arise as the first inventory of AI.
It is true that wasting Huawei is a vital setback, and Apple abandoning Qualcomm as a supplier can represent the loss of a critical competitive advantage.
However, Apple has not been able to update Qualcomm more than once, and it is transparent if this time will succeed. In addition, with the AI modeling that fits much cheaper, more consumers will have an intelligent explanation why update their smartphones.
In addition, a superior call for AI can arouse greater interest in other Qualcomm products. In a P / E 18 relationship, the promise of its technology, as well as a low evaluation, can position Qualcomm movements for abundant yields.
Will Healy has positions in Micro Advanced, Intel and Qualcomm appliances. Motley Fool has positions and recommends Micro Advanced, Apple, Intel and Qualcomm Micro. The Motley Fool recommends the following options: February 2025 court, call Intel. The silly fool has a dissemination.
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