Qualcomm (QCOM) hits record high on bullish revenue forecast
06:47, 17 November 2021
Shares in US-based wireless technology major Qualcomm (QCOM) hit a record high on Tuesday after the firm announced bullish revenue forecasts amid diversification of its revenue pool from smartphones to autonomous vehicles.
The stock extended gains made on Tuesday to close 7.9% up at an all-time closing high of $181.81 (£135.10).
"Qualcomm is uniquely positioned to grow across multiple industries in addition to handsets, with a rapidly diversifying business that is not defined by any one single industry or customer,” said Qualcomm chief executive Cristiano Amon.
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The company said it expects its semiconductor business to grow at "mid-teens" compounded annual growth rate (CAGR) and achieve an operating margin of over 30% by the 2024 financial year.
Handset and RF front-end revenues are expected to grow at least in line with a 12% CAGR by the same period, the Snapdragon chip supplier added.
Qualcomm said automotive revenues are expected to grow to about $3.5bn in five years and around $8bn over ten years.
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On Tuesday, Qualcomm also announced it was partnering with Germany-based automaker BMW Group to collaborate on automated driver technology.
“BMW Group and Qualcomm Technologies will extend their long-standing relationship to deliver safe, smart and sophisticated driving experiences to BMW Group vehicles. BMW's next-generation Automated Driving stack will be based on the Snapdragon Ride vision system-on-chip (SoC), visual perception and ADAS central compute SoC controllers managed by Qualcomm’s Car-2-Cloud services platform,” Qualcomm said in a statement.
Shares of Qualcomm inched 0.5% lower in after-market trade on Tuesday.
“The Company expects its addressable opportunity to grow from approximately $100 billion today to $700 billion in the next decade, as more devices become intelligently connected,” Qualcomm said.