Qualcomm Sees Modest Growth Ahead Despite New AI Chips and Cost Cuts

Qualcomm experienced a rebound in growth in Q1 2024 earnings after a challenging period, but growth is expected to remain modest in 2024-2025 due to a flat smartphone market and soft automotive market.

Qualcomm is releasing new AI-enabled chips in 2024 which could boost growth, but consumer spending on tech may be soft due to persistent inflation.

Margins could improve going forward due to Qualcomm's premium tier chips and headcount reduction, providing some tailwinds.

Industrial IoT offers some growth potential for Qualcomm from increasing automation and government infrastructure spending.

Valuation is reasonable and Qualcomm offers shareholder value through dividends and potential for opportunistic buybacks.