Qualcomm: A Desperate Shift That Won't Change The Sentiment

Andres Veurink1.95K FollowersFollow5ShareSavePlay(14min)Comments(2)SummaryQualcomm faces structural headwinds as its legacy smartphone business weakens and customer concentration risk rises, notably with Apple.QCOM's net income surge to $7.3B was driven by a one-time $5.1B tax benefit, masking underlying EBIT and margin declines.Management targets $15B in data center revenue by 2029, but only $1B is contractually committed, raising skepticism about execution and capital allocation.I rate QCOM a Sell due to deteriorating core margins, uncertain data center traction, and lack of clear long-term growth catalysts. JHVEPhoto/iStock Editorial via Getty Images Investment Thesis It feels like the bulls came and went pretty quick given how the share price of QUALCOMM (QCOM) has moved over the past couple of months. Following a pretty massive swing upwardsThis article was written byAndres Veurink1.95K FollowersFollowWith over a decade of institutional investment experience, I specialize in identifying growth opportunities at the intersection of technological disruption and macro-thematic energy shifts. I've spent the majority of that time at a hedge fund here in Rotterdam, working my way up as an analyst. My work reflects rigorous standards as I myself have a very high standard as to what I invest my money in. My primary coverage spans the technology sector—with a focus on SaaS and cloud infrastructure—and the energy and minerals markets. I tend to be very data and trend driven in my work, analyzing unit economics and supply chain gaps among a number of other often overlooked areas in business and industries.I find these offer incredible growth opportunities and are also very fun to research and follow. It's a very active space with plenty of news coming out each week. Work is my own thoughts and research is done only by myself.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.