On Tuesday, Qualcomm Inc . (NASDAQ:QCOM) saw its price target increased to $205 from the previous $180, while its stock rating was sustained at Buy. The adjustment follows Qualcomm's reported earnings for fiscal second quarter of 2024, which exceeded consensus expectations. The company experienced a 1% year-over-year increase in sales and a normal seasonal dip of 5% on a sequential basis. Non-GAAP earnings per share (EPS) saw a 13% rise.
Qualcomm has guided for its fiscal third quarter of 2024, with projected revenue and non-GAAP EPS at the midpoint surpassing prior consensus estimates. The improved forecast is partly due to the resurgence in demand from Chinese handset manufacturers and the consistent market share held by a major customer, Apple (NASDAQ:AAPL), in the global smartphone sector.
The firm has noted Qualcomm's expansion into the automotive market as a growth driver, in addition to the recovery in the Android ecosystem. Qualcomm has been actively developing a range of products and strategies for on-device Generation AI, targeting a variety of platforms including smartphones, PCs, and other devices.
The company's enduring strength is attributed to its robust portfolio of silicon products and intellectual property. The raised price target reflects confidence in Qualcomm's market position and its potential for continued growth in the coming year.
InvestingPro Insights
Following the upbeat earnings report and raised price target for Qualcomm Inc. (NASDAQ:QCOM), it's worth noting additional insights that could further inform investors about the company's financial health and market position. According to InvestingPro data, Qualcomm boasts a substantial market capitalization of $202.94 billion, underscoring its significant presence in the industry. The company's P/E ratio stands at a solid 24.13, with an adjusted P/E ratio for the last twelve months as of Q2 2024 at 23.09, indicating investor confidence in its earnings potential.
InvestingPro Tips highlight Qualcomm's impressive track record of raising dividends for 21 consecutive years, which is a testament to its financial stability and commitment to shareholder returns. Additionally, 18 analysts have revised their earnings upwards for the upcoming period, signaling optimism about the company's future performance. For investors looking to delve deeper into Qualcomm's prospects, there are 14 additional InvestingPro Tips available at Investing.com/pro/QCOM. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking valuable insights that could help in making more informed investment decisions.
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