Qualcomm Inc (NASDAQ:QCOM) shares are skyrocketing after analyst Ming-Chi Kuo commented on the company’s Snapdragon 8 Gen 4 shipments.
The analyst noted that Qualcomm’s stock price has already taken into account the negative impact of Apple Inc (NASDAQ:AAPL) is developing its own 5G chips. The company is poised to benefit from better-than-expected momentum in the fourth quarter of 2024 and favorable trends in 2025, including the growth of AI smartphones and AI PCs and higher System on Chip (SoC) prices due to the introduction of Taiwan Semiconductor Manufacturing Co (NYSE:TSM) 3-nanometer process, according to Ming-Chi Kuo.
Also read: China eats Apple’s lunch: where smartphone manufacturer scores compared to Asian competitors
According to the analyst, of Qualcomm’s mobile SoCs this year, the most expensive and profitable Snapdragon 8 Gen 4 (SD8G4) will see the majority of its 2024 shipments in the fourth quarter of 2024.
Ming-Chi Kuo noted that, compared to SD8G3, SD8G4’s shipments would likely increase by 50% to 9 million units in the second half of 2024, with a 15% ASP increase to $180, which would significantly contribute to turnover and profit in the fourth quarter of 2024.
The analyst noted that the significant growth in SD8G4 shipments is attributed to a longer shipping period, increased demand from Samsung, and recent dynamics in the Chinese smartphone market.
Smartphones from Chinese brands achieved approximately 80% market share during the recent Golden Week holiday sales, with shipments growing 20% (versus the iPhone, which was flat), which is likely to continue until the fourth quarter of 2024, said Ming-Chi Kuo.
According to the analyst, the market share of high-end smartphones (over 4,000 RMB) in China is likely to grow from 25%-30% in 2023 to 30%-35% in 2024.
He added that the number of smartphones sold in the Chinese market is likely to grow by 3% to 280 million units in 2024, and growth is likely to continue in 2025.
Price promotion: QCOM stock is up 3.32% to $175.63 at last check on Monday.
Photo via Shutterstock
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Latest reviews for QCOM
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Date |
Sturdy |
Action |
By |
Nasty |
|---|---|---|---|---|
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February 2022 |
Mizuho |
Maintains |
Buy |
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February 2022 |
Morgan Stanley |
Maintains |
Overweight |
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February 2022 |
JP Morgan |
Maintains |
Overweight |
View more analyst ratings for QCOM
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This article Qualcomm Expects 50% Surge in Snapdragon 8 Gen 4 Shipments by End of 2024, Analysts Forecast originally on Benzinga.com
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