JP Morgan analyst Samik Chatterjee maintained an Overweight score on Qualcomm Inc (NASDAQ:QCOM).
Samsung Electronics not too long ago launched its latest flagship smartphone, the S25, which options Snapdragon chipsets throughout all variants.
This marks a share achieve for Qualcomm in comparison with the prior technology flagship S24, the place the Base and Plus fashions exterior North America and China used Samsung’s in-house Exynos chipset.
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Regaining this share at Samsung underscores Qualcomm’s technological management in cell processors, which continues to broaden into different key markets, together with automotive and IoT.
Relating to the profit from the incremental share, Chatterjee estimates the incremental income alternative to quantity to $2 billion throughout the Handset TAM and incremental EPS of about $0.63 (5% of fiscal 2025E EPS consensus).
In response to Chatterjee’s estimate, incremental share achieve with S25 quantities to an incremental 12 million items.
Chatterjee estimates the prior-generation flagship S24 shipments to be near 40 million items in 2024, with 20 million for the high-end Extremely fashions.
With an estimated 60%/40% of the lower-end fashions leveraging Exynos / Snapdragon within the S24 line-up (solely the U.S. and China leveraged SD), Chatterjee estimated Qualcomm had a 70% share of the final flagship, which is able to improve to 100% within the present technology flagship S25, or an incremental 12 million items year-on-year. The incremental items lead Chatterjee to an estimated incremental income of $2 billion, which suggests an incremental EPS contribution of 5%.
Earlier this week, Chatterjee positioned Qualcomm on Optimistic Catalyst Look ahead to the upcoming earnings print, with an upside from the anticipated share achieve at Samsung as one of many drivers. He has already included the upside in his mannequin.
Qualcomm inventory surged 13% within the final 12 months. Traders can achieve publicity to the inventory via First Belief Nasdaq Semiconductor ETF (NASDAQ:FTXL) and iShares Semiconductor ETF (NASDAQ:SOXX).
Value Motion: QCOM inventory is down 0.41% at $173.64 ultimately examine Friday.
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Motion |
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Feb 2022 |
Mizuho |
Maintains |
Purchase |
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Feb 2022 |
Morgan Stanley |
Maintains |
Chubby |
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Feb 2022 |
JP Morgan |
Maintains |
Chubby |
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