$Qualcomm(QCOM)$ Recovering from poor report : things to watch out for
Qualcomm recently delivered a discouraging forecast for the third quarter of Fiscal Year 2023, citing weak demand for smartphone chips. The company also anticipates this sluggishness to continue for the next few quarters. Consequently, QCOM stock experienced a 6.5% drop in extended trading yesterday.
The uncertain economic climate, ongoing inflation, and a slow economic recovery in China are contributing factors to the reduced demand. As a result, Qualcomm predicts a high single-digit percentage decline in global production of 3G, 4G, and 5G handsets in 2023 compared to the previous year.
Additionally, the company expects an unusually large sequential drop in fiscal Q3 revenues for the QCT (Qualcomm CDMA Technologies) division, ranging from $6.9 billion to $7.5 billion. This division encompasses mobile-phone chipsets and other mobile device products. It is crucial to highlight that Qualcomm's forecast does not consider the potential recovery of Chinese demand in the latter half of 2023.
During its earnings release, Qualcomm presented a generally disappointing outlook for Q1, with expected revenue between $8.1 billion and $8.9 billion, falling short of analysts' $9.12 billion prediction. Furthermore, the projected EPS range of $1.70 to $1.90 misses analysts' estimates of $2.13.
Investor advice:
Closely monitor market trends and economic indicators, especially those related to the smartphone industry and global economic recovery.
Keep an eye on China's economic recovery, as a rebound in demand could positively impact Qualcomm's performance.
Diversify your investment portfolio to mitigate potential losses from underperforming stocks, such as QCOM.
Evaluate Qualcomm's long-term growth prospects, including its potential in the 5G and IoT markets, which could drive future growth.
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When bought NUVIA, if Qcom keep to develop server chip first and expand AI server, pc chip and mobile chip.
Is Qcom's price better than now? Just guessing.
Maybe Qcom should stop announcing next quarter revenues like Apple, we would be better off
Qcom would do better if they suspended operations and just bought stock in apple and nvidia
Qualcomm is a leader in chip design with their snapdragon products.
Qualcomedy always underperforming. What else is new
Wow