Qualcomm Stock News and Analysis: QCOM up again on Wednesday after zooming nearly 8% on Tuesday
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UNLOCK OFFER- QCOM stock jumped 7.9% on Tuesday.
- The boost came from an optimistic move into autonomous vehicles and the Internet of Things.
- Qualcomm stock is trading at an all-time high just below Wall Street's price target.
Optimistic forecasts from Qualcomm (QCOM) management during the company's Investor Day on Monday quashed any negativity over Apple self-supplying its own modems and led to QCOM stock flying nearly 8% higher to notch an all-time high. QCOM price rose another few percentage points on Wednesday at the open.
Qualcomm (QCOM) Stock News: Moving from phones to autonomous vehicles
Most significantly, Qualcomm said it expects its total addressable market to grow from $100 billion annually to $700 billion in 2030. This is because management is moving from a focus on the smartphone market to the autonomous vehicle and Internet of Things (IoT) market. Qualcomm predicts this move will greatly increase revenue.
"Qualcomm is at the beginning of one of the largest opportunities in its history, enabling a world where everyone and everything is intelligently connected," said CEO Cristiano Amon in a press release. "Qualcomm is uniquely positioned to grow across multiple industries in addition to handsets, with a rapidly diversifying business that is not defined by any one single industry or customer."
Specifically, it expects the semiconductor segment to "grow at mid-teens CAGR with 30%+ operating margin by fiscal 2024."
Additionally, Qualcomm said its modems, which are present in nearly all Apple products at present, may only supply about 20% of Apple (AAPL) products by 2023. After buying Intel's modem unit, Apple is now designing its own modems.
QCOM key statistics
| Market Cap | $184.7 billion |
| Price/Earnings | 21 |
| Price/Sales | 5.6 |
| Price/Book | 18.6 |
| Enterprise Value | $188 billion |
| Operating Margin | 29.2% |
| Profit Margin |
27% |
| 52-week high | $184.74 |
| 52-week low | $122.17 |
| Short Interest | 1.3% |
| Average Wall Street Rating and Price Target | Hold, $194.91 |
Qualcomm (QCOM) Stock Analysis: Making all-time highs, bulls not done yet
On Wednesday, QCOM price is once again pushing to a new all-time high above $184. This tells us that despite Tuesday's unexpected surge, bulls are not done yet with this swing high.
It is important to remember that QCOM stock is now up more than 50% from when it touched a triple bottom on October 13. That was a triple bottom due to QCOM price bouncing off the area around $123 in March, May and again in October.
With November's surge pushing QCOM up so far above the longer-term moving averages, they can be shunted to the side. Support sits in the $160s where there is a demand/consolidation zone from last week's pullback. Until there is any more pattern creation or structure to QCOM price, there is no certainty where the stock will meet resistance. It does seem, however, that bulls are likely to push at least to the average price target at $194.91.
QCOM daily chart
- QCOM stock jumped 7.9% on Tuesday.
- The boost came from an optimistic move into autonomous vehicles and the Internet of Things.
- Qualcomm stock is trading at an all-time high just below Wall Street's price target.
Optimistic forecasts from Qualcomm (QCOM) management during the company's Investor Day on Monday quashed any negativity over Apple self-supplying its own modems and led to QCOM stock flying nearly 8% higher to notch an all-time high. QCOM price rose another few percentage points on Wednesday at the open.
Qualcomm (QCOM) Stock News: Moving from phones to autonomous vehicles
Most significantly, Qualcomm said it expects its total addressable market to grow from $100 billion annually to $700 billion in 2030. This is because management is moving from a focus on the smartphone market to the autonomous vehicle and Internet of Things (IoT) market. Qualcomm predicts this move will greatly increase revenue.
"Qualcomm is at the beginning of one of the largest opportunities in its history, enabling a world where everyone and everything is intelligently connected," said CEO Cristiano Amon in a press release. "Qualcomm is uniquely positioned to grow across multiple industries in addition to handsets, with a rapidly diversifying business that is not defined by any one single industry or customer."
Specifically, it expects the semiconductor segment to "grow at mid-teens CAGR with 30%+ operating margin by fiscal 2024."
Additionally, Qualcomm said its modems, which are present in nearly all Apple products at present, may only supply about 20% of Apple (AAPL) products by 2023. After buying Intel's modem unit, Apple is now designing its own modems.
QCOM key statistics
| Market Cap | $184.7 billion |
| Price/Earnings | 21 |
| Price/Sales | 5.6 |
| Price/Book | 18.6 |
| Enterprise Value | $188 billion |
| Operating Margin | 29.2% |
| Profit Margin |
27% |
| 52-week high | $184.74 |
| 52-week low | $122.17 |
| Short Interest | 1.3% |
| Average Wall Street Rating and Price Target | Hold, $194.91 |
Qualcomm (QCOM) Stock Analysis: Making all-time highs, bulls not done yet
On Wednesday, QCOM price is once again pushing to a new all-time high above $184. This tells us that despite Tuesday's unexpected surge, bulls are not done yet with this swing high.
It is important to remember that QCOM stock is now up more than 50% from when it touched a triple bottom on October 13. That was a triple bottom due to QCOM price bouncing off the area around $123 in March, May and again in October.
With November's surge pushing QCOM up so far above the longer-term moving averages, they can be shunted to the side. Support sits in the $160s where there is a demand/consolidation zone from last week's pullback. Until there is any more pattern creation or structure to QCOM price, there is no certainty where the stock will meet resistance. It does seem, however, that bulls are likely to push at least to the average price target at $194.91.
QCOM daily chart
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