Market Insights

QUALCOMM reported Q3 2024 results showing strong performance, with non-GAAP revenues reaching $9.4 billion and earnings per share of $2.33. These metrics fall above the midpoint of the company's guidance. CEO Cristiano Amon highlighted the impressive growth in the chipset business, with revenues of $8.1 billion. A significant factor contributing to this success comes from the automotive and IoT sectors, which reflect the ongoing execution of Qualcomm's diversification strategy.

In the automotive segment, QUALCOMM secured over ten new design wins with global automakers. Amon stated, "We continue to see signs of the pipeline translating into revenue," emphasizing their commitment to leading in the digital automotive space. Notably, Qualcomm's Snapdragon Digital Chassis is becoming integral to the industry. The CEO sees great potential in Generative AI applications, which could enhance user experiences in vehicles, saying, "Gen AI use cases could lead to an upgrade of content in digital cockpits."

Regarding mobile technology, the launch of ALL Galaxy Z Fold6 and Flip6 devices powered by Snapdragon illustrates Qualcomm's critical role in advancing AI capabilities in smartphones. As demand for AI in mobile devices rises, Amon remarked, “We believe next-generation smartphones will become AI-centric,” reflecting strong confidence in the technology’s trajectory.

Moving to the PC sector, Akash Palkhiwala, CFO, noted the launch of Copilot+ PCs powered by Snapdragon X Series platforms. Palkhiwala stated, “This marks the start of one of the most significant transitions in personal computing since the launch of Windows 95.” The initial market reception has been positive, leading to predictions that at least 50% of PCs will be AI-capable by 2027.

Looking ahead, QUALCOMM forecasts revenues for Q4 between $9.5 billion to $10.3 billion, with non-GAAP EPS projected between $2.45 to $2.65. Palkhiwala shared key considerations affecting these forecasts, including the market’s expectations for flat global handset units and adjustments concerning the company's license to export products to Huawei.

In conclusion, QUALCOMM remains focused on diversification into automotive and PC markets, emphasizing on-device AI as a core component of future growth. Amon affirmed the company is "super focused on growth and diversification," indicating a robust strategy poised for continued momentum. Investors can expect further insights into Qualcomm's strategic roadmap during the upcoming Investor Day on November 19.