Qualcomm: mixed reception for new targets

(CercleFinance.com) - Last night, Qualcomm unveiled new financial targets based on the implementation of a diversification strategy that received a mixed reception on Wall Street today.


On the occasion of its latest investor day, the wireless technology specialist declared that it was targeting a total available market (TAM) of some $900 billion by 2030.

In detail, the Californian group has set itself the target of generating annual sales of $8 billion in the automotive sector by 2029, and $14 billion in the Internet of Things (IoT).

It also expects to achieve annual sales of $4 billion in PCs by the same date.

While they welcome the semiconductor manufacturer's optimistic forecasts, BofA analysts believe that this strategy is not entirely devoid of risk.

Qualcomm is getting ready to enter markets that are still in an emerging phase, such as virtual reality (VR) and augmented reality (AR), IoT for industry and AI for PCs", warns the broker.

"In addition, Qualcomm's business today is largely focused on cell phones", he points out.

Some professionals are also concerned about the group's heavy exposure to China, a situation that could complicate the achievement of its objectives in the event of a new Sino-American trade war or renewed tensions over national security issues.

On the New York Stock Exchange, Qualcomm shares lost more than 5% in the wake of this presentation, bringing their gains since the start of the year to less than 14%.

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