- Qualcomm Inc QCOM hosted its first-ever Automotive Investor Day in New York City.
- The key data point is that the lifetime automotive design pipeline has increased by $11 billion in the past month and a half to $30 billion.
- For more near-term metrics, FY26 automotive revenue target is now $4 billion+ in FY26, up from $3.5 billion previously, and $9 billion+ in FY31, up from $8 billion previously.
- Automotive will likely be $1.3 billion in FY22.
- Qualcomm moved its Snapdragon Platform from vehicle connectivity to digital cockpit applications and now gaining momentum in ADAS/AD.
- Rosenblatt analyst Kevin Cassidy reiterated a Buy and $220 price target on Qualcomm.
- He saw the Veoneer / Arriver software stack acquisition as driving the critical ingredient to Qualcomm's ADAS success. Expectations were set for design win announcements during CES 2023.
- Also, many other opportunities would likely be closed within the next two years.
- The Qualcomm bears may point to these wins as lower-level processing and not the domain processor, but he liked the progression of lower-end CPU designs to higher end in the long-term wins strategy.
- Barclays analyst Blayne Curtis reiterated Equal Weight and a $160 price target.
- Curtis found it well-positioned within next-gen Auto designs with a stronghold in connectivity, growth in the digital cockpit, and emerging presence in ADAS/AD.
- Though Auto is a strong growth driver over the next decade+, the story is still heavily levered to Mobile, where NT Android trends are weaker and likely result in estimate revisions.
- Wells Fargo reiterated an Equal Weight and $150 price target.
- It highlighted how Qualcomm focused on the Snapdragon Digital Chassis enabling transformation in the automobile.
- While Qualcomm's automotive revenues represent only $1.3 billion, or ~3%, of total revenues today, it saw a significant opportunity to grow automotive revenues driven by accelerating trends within automotive.
- The analyst found it difficult for QCOM shares to outperform peers based on constrained LT growth prospects specific to the mature mobile handset market, which still drives ~60% of QCT sales.
- Price Action: QCOM shares traded lower by 2.36% at $120.75 on the last check Friday.
- Photo Via Company
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