Tianfeng International's Guo Mingzhu: Bullish on Qualcomm's (QCOM.US) Snapdragon 8 Gen 4 Strong Momentum, Expected to Increase Shipments by 50% in the Second Half

Analyst Ming-Chi Guo of Tianfeng International Securities said "strong" Snapdragon 8 Gen 4 sales would drive Qualcomm (QCOM.US) in the next two quarters, sending its stock up 4.74% on Monday. Guo wrote in a Medium article: "Compared with SD8G3, the shipment of SD8G4 in the second half of the year is expected to grow 50% YoY to ~9mn units, and the ASP is expected to grow ~15% YoY to ~$180." "SD8G4 is expected to make a significant contribution to the fourth-quarter revenue and profit. The significant growth in SD8G4 shipments is not only due to the longer lead time and increased demand from Samsung compared with SD8G3, but also due to the recent changes in the Chinese smartphone market, including the increased market share of Chinese brands, the higher proportion of high-end models, and the recovery of overall smartphone shipments." Guo added that the sales of Chinese brands' smartphones during the Golden Week grew 20% YoY, while the sales of iPhones were "flat." In addition, Guo believes that Qualcomm's stock price is largely affected by its loss of 5G chip business in Apple's devices, as Apple is developing its own chips. Guo wrote: "Qualcomm's stock performance will not only benefit from the better-than-expected growth momentum in Q4 2024, but also from the favorable trends in 2025, including the growth of AI smartphones and AI PCs, and the price rise of SoC due to the adoption of TSMC's N3P process."