Qualcomm ticks up as analyst sees ‘strong’ Snapdragon 8 Gen 4 shipments

Qualcomm (NASDAQ:QCOM) shares rose 1.8% in late morning trading on Monday as TF International Securities analyst Ming-Chi Kuo said “strong” Snapdragon 8 Gen 4 sales should boost the company’s next two quarters.

“Compared to [Snapdragon 8 Gen 3, second-half shipments of Snapdragon 8 Gen 4] are expected to grow 50% YoY to about 9 million units, with an ASP increase of around 15% to $180,” Kuo wrote in a post on Medium.

“It’s expected to contribute significantly to 4Q24 revenue and profit. The significant growth in SD8G4 shipments is attributed not only to a more extended shipping period compared to SD8G3 and increased demand from Samsung but also benefits from recent changes in the Chinese smartphone market, including increased market share of Chinese brands, a higher proportion of high-end models, and a recovery in overall smartphone shipments.”

Chinese brand smartphones saw 20% year-over-year growth during the country’s recent Golden Week holiday sales, while iPhone sales were “flattish,” Kuo added.

In addition, Qualcomm’s stock has largely factored in the loss of its 5G chip in Apple (AAPL) devices, as the tech titan develops its own chips, Kuo posited.

“The company’s stock is poised to benefit not only from better-than-expected momentum in 4Q24 but also from favorable trends in 2025, including AI smartphone and AI PC growth and increased SoC prices due to the adoption of [Taiwan Semiconductor’s] N3P process,” Kuo wrote.