Chipmakers will be back in focus with third quarter earnings from Arm Holdings and Qualcomm (NYSE:QCOM).
QCOM – Daily Chart
The price of QCOM is in a trading range between $156.50 and $177.64. The coming earnings release could see a move to one of those targets.
Wireless chipmaker Qualcomm will be reporting results on Wednesday after the market closes. The company beat analysts’ revenue expectations by 1.9% last quarter, reporting revenues of $9.39 billion, which were up 11% year on year. It was a strong quarter for the company, with optimistic earnings guidance for the next quarter and a beat of analysts’ EPS estimates.
For the coming quarter, analysts are expecting Qualcomm’s revenue to grow around 15% year on year to $9.93 billion. That would be a strong turnaround from the 24.3% decrease it recorded in the same quarter last year. Earnings are expected to come in at $2.57 per share.
Results at Qualcomm’s peers may give a hint to what we can expect in Q3 with AMD delivering year-on-year revenue growth of 17.6%, beating analysts’ expectations by 1.6%.
ARM Holdings will also release earnings on Wednesday and the share price is down -25% from the July highs after sales disappointed in previous earnings. Raymond James analyst Srini Pajjuri is bullish on Arm, setting a $160 price target for Arm and calling it “well-positioned to benefit from rapid growth of GenAI in the cloud and at the edge.”
Pajjuri said that its edge AI was “a key catalyst” for Arm’s Armv9 architecture, which is used in the new Apple iPhone 16.
The US election result on Tuesday could see movement in chip stocks due to the differing ideas of both candidates on tariffs and trade.