Yahoo Finance will soon be upgrading our Conversations message board platform to provide a better experience for our users. Only comments published since April 21, 2021 will be visible on Yahoo Finance after the upgrade. If you wish to download and save any of your older comments, please submit a request via the Privacy Dashboard by no later than Aug. 15, 2022.
Qualcomm agreed to buy an additional $4.2 billion in semiconductor chips from GlobalFoundries's New York factory, bringing its total commitment to $7.4 billion in purchases through 2028, according to a filing released Monday.
Our one technology road map across wireless connectivity, advanced edge processing and power-efficient AI is incomparable across our peer group. **In fact, advanced processing and artificial intelligence are the fastest-growing silicon content areas for Qualcomm.**
The average historical S&P 500 is 15.97 which translates with a very conservative EPS of 12 to 191.64. If we want to be even more conservative the median of the S&P 500 is 14.89 which again at an EPS of 12 we are looking at 178.68. Forget the fact the current S&P 20.84 which would put us at 250.08. There is absolutely NOTHING in the horizon of the next 5 years that would indicate QCOM should have a PE ratio of less than than the historical S&P 500 mean. NOTHING. If anything, the technological leadership in mobile communications of the company should put it comfortably above current S&P 500 PE.
We will get there and fast, 2-3 years when EPS is 15 plus PE of this company will be over 25 and then momentum players would be falling all over themselves to buy in. That's how it goes.
with nvda.
QCOM connecting the world, one device at a time
""Brett, we're not providing any Apple updates at this time. And we feel pretty good about our modem road map and 5G. And I think you should expect that Qualcomm will continue to be a leader and especially as modems becoming more difficult as supporting more than one end market beyond smartphones."
Following the recent passage of the U.S. CHIPS and Science Act last week, GlobalFoundries (Nasdaq: GFS) (GF), a global leader in feature-rich semiconductor manufacturing and Qualcomm Technologies, Inc. today announced they are more than doubling their existing strategic global long-term semiconductor manufacturing agreement previously entered into by GF’s and Qualcomm’s respective subsidiaries. Today’s announcement secures wafer supply and commitments to support U.S.-based manufacturing through capacity expansion at GF’s most advanced semiconductor manufacturing facility, in Malta, New York.
When Akash was asked about their Dec Quarter (FY23Q1 / CY22Q4). His response was he expects strong growth from FY22Q4 to FY23Q1. So I looked at the revenue and earnings growth from Q to Q last year to determine what their FYQ1 (CYQ4) will look like - and the growth compared to a year ago - as this is a good indicator of FY23 overall growth to expect as we move forward.
Without boring you with the math and assuming they hit the upper range of their FYQ4 guide - Sept Quarter - Using the diluted non gaap, I see earnings in the area of $3.80 per share and revenue in the area of $12.8B
- This constitutes a 15% YoY growth for FY23
Upside factors not included in above -
1) Stronger growth in FY23 handsets considering 100% Samsung
2) Margin expansion considering higher growth in Auto/IOT which both bring higher margins
3) Ramping growth in IOT (I think we will see this ramp in FY23)
4) Nuvia and PC impact - assumed $0 in above
5) Bigger impact of mmwave adoption in FY23 than FY22 (very likely)
In summary - if everything stayed the same with a slight downward economic impact on consumer purchases - we see 15% YOY for QCOM in FY23. However, I am an optimist and think that QCOM will likely end the year 20% or higher. Either of these is very good considering the climate and valuation of QCOM today.
In the Q4 ER, will QCOM provide an updated FY23 guide from Analyst Day? I expect whatever is happening with Apple will be the catalyst that will "force" QCOM to revise. I expect they will say something like moving from mid-single digit growth to mid-teens growth is expected for FY23 during their Q4/EOY ER.