Qualcomm (QCOM) Delivers Solid Results—But Apple Headwinds Still Loom
Story by Ghazal Ahmed
ASDAQ: QCOM) is one of the AI Stocks Analysts Are Watching Closely. On July 31, Cantor Fitzgerald analyst C.J. Muse reiterated a “Neutral” rating on the stock with a $150.00 price target.
The rating affirmation follows Qualcomm’s quarterly report where the chipmaker announced revenues of $10.4 billion and earnings per share of $2.77. These figures slightly exceeded consensus estimates of $10.3 billion and $2.71.
Looking ahead, guidance for the September quarter was also raised to $10.7 billion in revenue and $2.85 in earnings per share, surpassing analyst expectations.
“QCOM reported a modest beat ($10.4B/$2.77 vs. cons $10.3B/$2.71) and raise ($10.7B/$2.85 vs cons $10.6B/$2.83) despite fears of pull-ins setting up for a Sept Q miss. In fact, mgmt. noted no signs of tariff-related pull-ins currently (a bit surprising given recent commentary from QRVO, MTK, etc.), with handset upside in the Sept Q driven exclusively from the strength of a new product launch.”
Qualcomm (QCOM) Delivers Solid Results—But Apple Headwinds Still Loom© Provided by Insider Monkey
An aerial view of a bustling semiconductor production zone showcasing the company’s integrated circuits.
The firm discussed how Qualcomm boasts strong positioning in XR/AR markets. Meta’s smart glasses have exceeded expectations while new Snapdragon-powered devices are expected from key partner Xiaomi. The firm is also optimistic that the company is on track to hit the FY26 revenue target of $4B.
“Automotive is also likely ahead of schedule with revenues expected to be ~$1.0B in the September Q, leaving the company well on track to hit the FY26 revenue target of $4B. “There was some bad news, too.
“As for the bad news, on the call the company guided for typical seasonality into the December Q ex- AAPL – which we believe implies a bit downside to consensus numbers coming in. Also, EBT margins in QCT of 28% in the Sept Q are a clear disappointment and are only likely to get worse as AAPL is fully removed from the model – we believe a primary driver of the after-hours weakness.”The firm sees better opportunities in other semiconductor stocks right now.
QUALCOMM Incorporated (NASDAQ:QCOM) develops wireless technologies, supplies chips for mobile, automotive, and IoT, licenses patents, and invests in emerging tech.
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