Why is Qualcomm stock going up?

Qualcomm shares jump after company reports strong earnings during chip shortage. Qualcomm shares closed up almost 13\% Thursday, a day after the company reported fiscal fourth-quarter earnings that beat analyst expectations. The company reported 56\% year-over-year growth in chip sales despite the global chip shortage.

How does Qualcomm make money?

The company’s profitable Qualcomm Technology Licensing segment, which includes revenue from 5G patents and other handset technologies, rose 43\% to $1.49 billion. QTL is a higher-margin business than Qualcomm’s chip sales. Industry-watchers are paying attention to how Qualcomm navigates the global chip shortage.

Who supplies chips to Qualcomm?

It turns out, Qualcomm is able to manufacture its processors using two different foundries, or chip factories. Currently, Samsung and TSMC are operating the most advanced leading node, called 5-nanometer, so Qualcomm is buying from both.

Is Qualcomm a good investment?

QCOM is a #2 (Buy) on the Zacks Rank, with a VGM Score of B. The Zacks Consensus Estimate has increased $1.31 to $10.52 per share. QCOM boasts an average earnings surprise of 11.2\%. With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, QCOM should be on investors’ short list.

What does Qualcomm do?

Qualcomm is a multinational corporation known for designing and manufacturing semiconductors and wireless telecommunications products.

Is Qualcomm a good company?

Both Apple and Qualcomm are really good companies and portray tremendous growth opportunities.

Why is Qualcomm so important?

Qualcomm has two main revenue streams: It makes integrated circuits and system software for device makers. It also holds wireless patents, which produce licensing or royalty income. Qualcomm’s 5G chips power the latest Apple (AAPL) iPhones. They also power Android devices.

Does Qualcomm have a future?

Analysts expect Qualcomm earnings per share to grow 22\% in 2022 as sales increase 15\%, FactSet says. Both earnings and sales are seen growing further in 2023, but at a single-digit pace. The company returned to growth in 2020 after several years of declines.

Is there a cell phone shortage?

Canalys reported this morning that global smartphone sales are off 6\% this quarter, and it’s not because of lack of demand. It’s due to the worldwide chip shortage. The pandemic has had a negative impact across supply chains, and chips have been particularly hard hit.

What is QCOM price target?

Stock Price Target QCOM