Qualcomm Shows No Signs of Slowing Down With Impressive Q1 Results; No Change to FVE

Qualcomm reported fiscal first-quarter revenue at the high end of management’s guidance, with the firm benefiting from the ongoing ramp of 5G smartphones and broad-based chip demand. Despite the ongoing chip shortage, the firm has been able to secure sufficient supply to achieve significant growth via multisourcing initiatives. These include leveraging key foundry partners such as TSMC and Samsung as well as second-tier foundries such as UMC for products made on mature process nodes. Chipset, or QCT, sales were boosted by share gains at Android smartphone OEMs and greater 5G chip content. With management's guidance consistent with our estimates, we maintain our $163 fair value estimate and see shares of narrow-moat Qualcomm as modestly overvalued at current levels.