Qualcomm Shares Soar 4% On Strong Smartphone Sales, China Revival (Image:X/Qualcomm)
California, US: The software maker Qualcomm’s stock price surged 4% on Friday after the company forecasted strong quarterly revenue which is fueled by a rebound in the smartphone market, particularly in China.
During the Q4 FY24 earnings announcement, Qualcomm President and CEO @cristianoamon discussed growth across industries supporting our transition into a connected computing company. $QCOM pic.twitter.com/hyq3iYLrtY
— Qualcomm (@Qualcomm) November 6, 2024
This boost adds around $8 billion to Qualcomm’s market value. The chip designer’s optimistic prediction suggests the smartphone market is recovering from a tough 2023. Also, Consumers are upgrading devices to support AI apps like chatbots and image generators.
Qualcomm’s revenue is heavily reliant on China accounting for nearly half of its sales as the new smartphone launches from Chinese brands like Xiaomi, Oppo and Vivo have driven demand.
Ryan Detrick, Carson Group’s chief market strategist said that this shows consumers are willing to spend on high-end cell phones, however, concerns remain about whether this growth will be sustained or dwindled.
Also, read| Qualcomm And Google Collaborate On AI-Powered Voice Assistants For Cars
Qualcomm is exploring new revenue streams as the company prepares for the end of its lucrative tie-up with Apple, On the contrary, Apple plans to replace Qualcomm’s modem chips with its own.
Qualcomm is also said to be focusing on laptops, artificial intelligence in data centres, automotive, the internet of things and PCs.
According to Bob O’Donnell, TECHnalysis Research’s chief analyst, “Qualcomm is enjoying additional revenue from these emerging markets.” “This diversification will help offset potential declines in Apple revenue,” he added.
The recent-elected American president Donald Trump’s proposed tariffs on imports including chips from Taiwan could impact Qualcomm. If implemented, these tariffs might incentivize Qualcomm to move manufacturing to the US.
Also, read| Nvidia Hits Record High As TSMC’s Strong Sales Forecast Boosts Chip Stocks
Early in October, Qualcomm announced that it has partnered with Google’s parent company, Alphabet to develop AI-driven voice assistants for automobiles that may enable carmakers to create customised in-car experiences.
Qualcomm’s chips are already used in many mobile phones and cars. Now, Google’s Android operating system will work with Qualcomm’s chips in cars. Qualcomm stated that this partnership will allow carmakers to create unique voice assistants that don’t need a driver’s phone.
