Qualcomm (QCOM.US) held an Investor Day yesterday. At the conference, the company presented its forecasts for the coming years, as well as hinted at its operational projections in the new post-election environment. Despite growth forecasts in key segments, one can somewhat feel that the company’s projections for its most growth-oriented sectors remain quite cautious, raising questions about the technology company’s possible future growth on the wave of increased demand for AI.
The company has highlighted its planned diversification in the Internet of Things (IoT) segment. Qualcomm plans to significantly move beyond the smartphone segment and aims for 50% of its business exposure to be in segments other than smartphones by 2030. Currently, 64% of the company’s revenue depends on the smartphone segment. The decision to diversify revenue sources into other sectors remains a positive signal of the company’s proactive measures against potential over-concentration.
Qualcomm anticipates generating $22 billion from segments such as laptops, automotive products, and other markets beyond the dominant smartphone segment over the next 5 years.
Despite bold revenue and diversification plans, investor concerns may be linked to the company’s failure to meet previous forecasts from 2021, which casts doubt on the effectiveness of the presented plans.
The company emphasizes that it does not expect significant risks associated with the new administration in the USA and also notes a positive attitude towards cooperation with Trump. However, the future of the company remains uncertain in the event of a potential escalation in US-China relations, as Qualcomm still has strong exposure to the Chinese market.
The company remains heavily dependent on large tech companies, including Apple, which has announced plans to partially transition to in-house production of key chips in the coming years, which could significantly impact Qualcomm.
Qualcomm chart (1D)
Despite the positive tone of Investor Day, the market views the company with some concern, especially in the context of Nvidia’s upcoming results. Qualcomm’s stock is down over 5%, falling below the lower boundary of the sideways trend it has been in since early August. The next support level is the local low from August 5th at $151. Investors should focus on this level, as dropping below this value could be interpreted as confirmation of exiting the sideways trend.
Source: xStation
The material on this page does not constitute financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other specific needs. All information provided, including opinions, market research, mathematical results and technical analyzes published on the Website or transmitted To you by other means, it is provided for information purposes only and should in no way be construed as an offer or solicitation for a transaction in any financial instrument, nor should the information provided be construed as advice of a legal or financial nature on which any investment decisions you make should be based exclusively To your level of understanding, investment objectives, financial situation, or other specific needs, any decision to act on the information published on the Website or sent to you by other means is entirely at your own risk if you In doubt or unsure about your understanding of a particular product, instrument, service or transaction, you should seek professional or legal advice before trading. Investing in CFDs carries a high level of risk, as they are leveraged products and have small movements Often the market can result in much larger movements in the value of your investment, and this can work against you or in your favor. Please ensure you fully understand the risks involved, taking into account investments objectives and level of experience, before trading and, if necessary, seek independent advice.
