Arete Adjusts Price Target on QUALCOMM to $305 From $314

Qualcomm's next-gen chip, Snapdragon 8 Elite Extreme 6th Gen, faces heating issues, potentially delaying its use in Samsung's Galaxy S27 Ultra. Samsung may switch to its in-house Exynos 2700 chip, developed using a 2-nanometer process, which could impact Qualcomm's revenue and Samsung's semiconductor strategy. Industry experts suggest Qualcomm may struggle to resolve the heating issue quickly.

A jury found Arm breached its agreement with Qualcomm and interfered with its Meta relationship, but rejected several other claims. Qualcomm was awarded $2 in damages, but key decisions on licensing and remedies remain with the judge. The outcome could impact future licensing talks and business practices. Arm also claimed victory, as it avoided substantial financial damages and defeated several claims.

A Delaware jury found Arm guilty of breaching a licensing agreement with Qualcomm and interfering with its business relations, awarding Qualcomm $2 in damages. Arm disputes the ruling, claiming it acted in good faith. Qualcomm seeks to stop paying royalties to Arm for five years, a decision pending with Judge Maryellen Noreika. The dispute began after Qualcomm's 2021 acquisition of Nuvia, with Qualcomm alleging Arm withheld chip-testing tools and leaked threats to end a key license.

A Delaware jury found Arm breached its licensing agreement with Qualcomm, awarding $2 in damages. Qualcomm seeks to stop paying royalties, while Arm argues the provision is unenforceable. The dispute follows earlier legal battles over Nuvia's acquisition. Both companies are expanding into new markets. Analysts note the ruling reduces uncertainty but Qualcomm's PC market challenges remain.

A jury found Arm breached its license agreement with Qualcomm, awarding Qualcomm $2. Qualcomm accused Arm of failing to provide software tools and interfering with a chip deal. Arm maintained it acted in good faith. The verdict is part of an ongoing legal dispute between the two companies.

Qualcomm (QCOM) reported fiscal Q3 with handset revenue down 20% YoY to $5.09B and automotive revenue up 61% to $1.59B. Non-GAAP EPS was $2.21, slightly missing estimates. Management raised its fiscal 2029 non-handset revenue target to $40B. The stock trades at a forward P/E of 20, with a PEG ratio of 0.88 and a free cash flow yield of 6.79%. Analysts have a $194 average target, with most rating it a Hold.