Qualcomm (QCOM) PT Lowered to $210 at Susquehanna

Susquehanna analyst Christopher Rolland lowered the price target on Qualcomm (NASDAQ: QCOM) to $210.00 (from $230.00) while maintaining a Positive rating.

The analyst commented: "On Tuesday, November 19, Qualcomm hosted its 2024 Investor Day in New York. These were the main highlights of the day: 1) Qualcomm now sees an expanded total TAM of ~$900B by 2030, with edge AI driving cumulative shipments of 50B connected edge devices through the end of the decade; 2) the company currently has 58 designs in production or development on the Snapdragon X PC platform, which is expected to grow to 100+; 3) expanding the Snapdragon X PC roadmap to cover the entry-level tier ($600+); 4) Qualcomm recently introduced Oryon Gen 2 in
premium mobile (Snapdragon 8 Elite), and Oryon Gen 3 for PC is currently in development with a targeted launch in 2025; 5) management views XR (VR/MR/AR) as the next important computing platform, highlighting Meta’s use of the Snapdragon XR platform to optimize on-device AI with Llama small language models; 6) Qualcomm is seeing Industrial IoT ($50B 2029 TAM) use cases across numerous verticals, highlighting energy (worker safety and emergency response) and retail (loss prevention and self-checkout); 7) QCT Auto & IoT revenue CAGR of +22% through FY29, with growth in annual revenues to “far exceed” the scale of the Apple modem chip revenue today; 8) QCT Automotive revenues to reach ~$8B by FY29 (TAM increasing from $50B to $100B), with over 80% of cumulative revenue over the next five years covered under existing design wins; 9) QCT IoT revenues to reach ~$14B by FY29 ($4B PC/$2B XR/$4B Industrial/$4B Other); 10) management expects the Android revenue SAM to grow mid-single-digit % annually over the next five years (vs. +8% CAGR over past three years) on content increases and mix; and 11) Qualcomm is targeting a revenue mix of 50/50 Handset/Auto & IoT by 2030. In short, we continue to have confidence in CEO Amon’s ability to move QCOM beyond a modem and cellular IP company to become a true broad-based semis player, reinforced by the constructive update at today’s Investor Day. That said, if there was one knock, we think the loss of Apple will weigh until 2027. We reiterate our Positive rating, but reduce our price target from $230 to $210 (~23x C2025E EV/NOPAT)."

You May Also Be Interested In

• Hyperion DeFi, Inc. (HYPD) PT Raised to $7.10 at Cantor Fitzgerald
• Benchmark Reiterates Buy Rating on Jumia Technologies (JMIA)
• Viking Holdings (VIK) PT Raised to $125 at Stifel