J.P. Morgan Asian Tech: Key Takeaways from Qualcomm's March-Quarter Results
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J.P. Morgan reviewed Qualcomm's March-quarter results, which exceeded expectations. Revenue reached USD 9.39 billion, up 2% year-over-year and surpassing the midpoint guidance of USD 9.25 billion. Non-GAAP earnings per share arrived at USD 2.06, beating the guided range of USD 1.90 to USD 2.00.
The handset chip segment generated USD 6.26 billion, declining 1% year-over-year but rising 4% sequentially, supported by robust demand from Chinese original equipment manufacturers. The automotive chip business maintained its strong momentum, growing 11% year-over-year to USD 603 million. This marks the fifth consecutive record quarter for the segment, driven by Snapdragon digital chassis design wins. Internet of Things (IoT) chip revenue stood at USD 1.24 billion, while licensing revenue grew 3% to USD 1.29 billion.
For the June quarter, management guided revenue between USD 9.2 billion and USD 10 billion, with non-GAAP EPS ranging from USD 1.95 to USD 2.15. This midpoint guidance sits slightly below market consensus, reflecting lingering smartphone demand uncertainty. Automotive design wins have now accumulated to over USD 30 billion, expected to convert into revenue over the next three to four years. The IoT segment is anticipated to recover in the second half as inventory digestion concludes.
J.P. Morgan maintained an Overweight rating on Qualcomm with a USD 200 target price, citing long-term automotive and IoT growth potential alongside a reasonable valuation.