Bank of America Securities' research report pointed out that Qualcomm (QCOM.US) was driven by the continued recovery of the Chinese mobile phone market and strong growth in the automobile industry, and its performance in the third quarter was strong and better than expected, with revenues up 11% year-on-year to $9.4 billion, higher than the market forecast of $9.2 billion; earnings per share were $1.88, lower than the market forecast of $2.24, but the company is expected to gradually reduce its larger non-labor expenses in the coming quarters.
Bank of America Securities mentioned that Qualcomm's revenue guidance for the fourth quarter is $9.9 billion, higher than the market estimate of $9.7 billion, but the market is focused on the group's weak revenue guidance for the first quarter of 2025, with a target growth of only 5%, lower than the market forecast of 9%. However, the bank believes the company can still create more catalysts for the stock price in the coming quarters, reiterating its "buy" rating and target price of $245.
The bank believes that the group's fundamentals are still sound, with very promising long-term growth prospects, and believes that AI PCs will become a significant driver of Qualcomm in the future.