A strong report from QUALCOMM (QCOM). for the second quarter of its fiscal year, 2021 has gone public this week. Qualcomm remains a leader in its industry and is thriving not only in the smartphone sector, where the company holds a strong position.
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Last quarter, Qualcomm generated revenues of $7.9 billion, up 52 % YoY. This was the third consecutive quarter of revenue growth of 50 % or more. GAAP net income for the first quarter rose 276 % to 1.8 billion dollars. Much of the growth was due to lower costs.
Revenue growth is mainly driven by the strong demand for smartphones. Qualcomm intends to update its 5G product line and expand the 5G segment at the same time. The success of Apple’s 5G smartphones has helped drive Qualcomm’s revenue growth in the past few quarters. In addition to smartphones, the 5G era will be marked by connected cars, IoT, smart homes, new routers, communication towers, etc. Increasing sales and entering new markets is an opportunity for Qualcomm.
However, QUALCOMM (QCOM) is still able to sustain its sustainable growth in the smartphone market. According to Grand View Research, the average annual growth rate of the chipset market would approach 70% until 2028. Therefore, the current slowdown in the smartphone market caused by a software issue and supply chain shortages is not likely to last.
The company expects third-quarter revenues to be between $7.1 billion and $ 7.9 billion, representing an increase of 45 – 62%.
On the charts, QUALCOMM (QCOM) is soaring today, down -1.17% to trade at $141.01 at the last check-in premarket trading. QCOM stock rose 4.47% on Thursday to close the day at $142.68. A total of 20.5 million shares were traded on the day, which is above the average volume for the last three months at 11.49 million shares. The stock traded between $140.67 and $145.2965. In the past five sessions, shares of QCOM have gained 7.30% and moved 9.66% over the past month, however, they have fallen by -6.34% in the year to date. Among the basics, there are a 50-day moving average of $134.91 and a 200-day moving average of $132.35. Also, its RSI is currently 59.11.
