Qualcomm: Deep Dive 5G and AI Analysis in 2024
Qualcomm (QCOM) has established itself as a key player in both the 5G and AI sectors. This analysis provides a detailed look at Qualcomm’s revenue from 5G and AI for calendar years 2024, compared with 2023, segmented by key areas of business. It adds more granularity to my June 6, 2024 Substack article entitled “Qualcomm: Propelled by Strong User Acceptance of Snapdragon for AI and ARM-based PCs and Smartphones.”
In a recent investor note dated May 31, Japanese bank Mizuho revised its price target for QCOM stock to $240, significantly surpassing the current trading levels of approximately $210 per share. This upward adjustment reflects Mizuho's optimistic outlook on Qualcomm's future performance, primarily driven by the anticipated uptick in demand for its advanced Snapdragon 8 Gen 3 chipset. Notably, this chipset facilitates on-device AI capabilities in smartphones, a feature expected to gain increased traction in the market. Mizuho reaffirmed its "buy" rating on QCOM shares, underscoring its confidence in the company's growth prospects.
Qualcomm's Annual Revenue Analysis for 5G and AI in 2023 and 2024
5G Market
Qualcomm's growth in the 5G market is driven primarily by its mobile chipsets, which are integral to the company's strategy. The Snapdragon line of chipsets supports a wide array of devices, providing enhanced connectivity, higher speeds, and more reliable network performance. This expansion is further supported by the company's advancements in 5G infrastructure components, networking and IoT solutions, and automotive applications.
