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- 1 QCOM Stock rallied 5.15% in a month and 12.01% YTD.
- 2 The upcoming Qualcomm chip will support Meta’s AI on mobile devices by 2024.
Qualcomm Incorporated (NASDAQ: QCOM) remarked that its upcoming chip will support Meta’s AI on mobile devices, and QCOM stock gained 3.31%. With the ongoing buzz around artificial intelligence (AI), the companies operating in the arena experienced colossal growth. With earning season knocking on the door, it will be interesting to see where QCOM will stand after the subsequent earnings.
Qualcomm Incorporated (QCOM Stock): Financial Analysis
It was recently announced that by 2024, Qualcomm chips will support Meta’s Llama 2 Large Language Model (LLM). LLMs typically require massive computational power and the upcoming chip will allow smartphones and personal computers to run LLM on their devices.
Meta’s LLM is believed to be a significant challenger to a prevalent ChatGPT application. If Qualcomm can deliver what it promised, it can go against giants like NVIDIA Corp (NASDAQ: NVDA), down by 2.66% at $443.09. It is known that the AI frenzy made Nvidia’s market cap surpass $1 Trillion a while ago.
Qualcomm Incorporated (NASDAQ: QCOM): Technical Analysis
At press time, QCOM Stock is trading at $124.72 with a jump of 3.31%; previous close and open stood at $120.72 and $121.93 respectively. The 52-week range is from $101.47 to $154.80, indicating that the current price is getting close to a higher level. With a volume of 23.68 Million shares, the market cap is at $143.196 Billion.
The trailing twelve-month (TTM) price-to-earnings (P/E) ratio is 13.71, indicating that the share price is slightly undervalued. At the same time, the (TTM) earnings per share (EPS) is $9.10, showing strength. Analysts placed a price target at $145.92 with an upside of 17.0%.
Qualcomm reported its last earnings on May 3, 2023, where revenue was said to be $9.268 Billion, beating the estimated value of $9.09 Billion by 1.95%. At the same time, the reported earnings of $2.15 also managed to beat the expected value of $2.146 by 0.17%.
The subsequent earnings will be disclosed on August 2, 2023, where the earnings are expected to be around $1.808, and revenue is expected to be around $8.513 Billion.
The profit margin gained 25.67%, and the operating margin swelled by 30.90%. The (TTM) revenue is 41.07 Billion, revenue per share (TTM) is $36.65, and the (YoY) quarterly revenue growth fell by 16.90%.
The gross profit (TTM) was recorded to be $25.57 Billion, while the total cash in hand at the end of the most recent quarter was $6.68 Billion, and the total debt is around $15.99 Billion.
Qualcomm Incorporated (QCOM Stock): Candle Exploration
Since May 2023 the price action has been oscillating in ascending order, and currently, it is brushing the relatively flat EMA. The share price has been trying to cross the crucial resistance at $127.82 for quite some time. If the price can sustain above EMA for a considerable period, it could break the crucial resistance and even fly into the selling zone.
The rising RSI, currently at 60.28, hints at a rally, and a bullish momentum could be seen once the price has crossed the selling zone.
If the price comes down, it should bounce off S1 at $113.31 before breaking to go to S2 at $101.29. The price is supposed to consolidate above S1 for some time.
Disclaimer:
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto and stock assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
