Qualcomm is set to experience a significant boost in the shipments of its Snapdragon 8 Gen 4 chipset, according to industry analyst Ming-Chi Kuo. This surge is anticipated to occur by late 2024, with shipments expected to jump by 50%. Kuo’s insights suggest that these projections are already reflected in Qualcomm’s stock performance, especially in light of Apple’s advancements in developing proprietary 5G chips.
The anticipated growth in Snapdragon 8 Gen 4 shipments, particularly in the fourth quarter of 2024, is fueled by a strong demand for high-performance mobile solutions. Kuo highlighted that the second half of 2024 could see shipments reach around 9 million units, marking a considerable increase compared to the previous generation, Snapdragon 8 Gen 3. Alongside this, the average selling price (ASP) for the new chipset is predicted to rise by 15%, bringing it to approximately $180—an increase that will significantly contribute to Qualcomm’s revenue and profitability during this period.
The anticipated demand for Snapdragon 8 Gen 4 is partly attributed to the growing influence of artificial intelligence in smartphones and personal computing. As OEMs (original equipment manufacturers) increasingly integrate AI capabilities into their devices, Qualcomm is well-positioned to benefit from this trend. Furthermore, the adoption of Taiwan Semiconductor Manufacturing Company’s advanced 3-nanometer process is expected to enhance the efficiency and performance of Qualcomm’s chipsets.
Chinese smartphone manufacturers, in particular, are driving much of this demand. Analysis shows that these brands gained a substantial market share during recent sales events, accounting for around 80% of smartphone sales during the recent Golden Week holiday. The market dynamics suggest that as these manufacturers continue to innovate and capture more of the high-end smartphone segment, Qualcomm’s Snapdragon 8 Gen 4 will play a crucial role in their offerings.
Looking ahead, the premium smartphone segment, which includes devices priced above 4000 RMB, is projected to grow from 25-30% of the market in 2023 to 30-35% in 2024. This forecast indicates a robust future for Qualcomm as the global demand for high-performance smartphones continues to rise.
As for Qualcomm’s stock, there has been a positive response to Kuo’s projection, with shares recently trading up over 3%. Investors are keenly watching how this trend develops, especially given the company’s pivotal role in the semiconductor industry and the increasing competition within the smartphone market.
In summary, Qualcomm’s Snapdragon 8 Gen 4 is poised for a substantial increase in shipments, driven by a combination of enhanced technology, strong market demand, and favorable economic trends. As the tech landscape continues to evolve, Qualcomm remains a key player in the mobile chipset space, ready to capture new opportunities and drive innovation.