JP Morgan analyst Samik Chatterjee has maintained an ‘Overweight’ rating on Qualcomm Inc (QCOM), reflecting optimism about the company’s prospects following Samsung Electronics’ launch of its new flagship smartphone, the S25. This device marks a significant shift as it incorporates Snapdragon chipsets across all its variants, a departure from the previous generation S24 where only the high-end models in North America and China used Qualcomm’s technology. This change underscores Qualcomm’s stronghold in mobile processor technology, further cemented by its growing influence in automotive and Internet of Things (IoT) markets.
The transition to Snapdragon in all S25 variants represents a notable share gain for Qualcomm. Chatterjee estimates this shift will add approximately 12 million units to Qualcomm’s tally compared to the S24 lineup, translating into an incremental revenue opportunity of $2 billion within the Handset Total Addressable Market (TAM). This increase is expected to boost Qualcomm’s earnings per share (EPS) by about $0.63, which is roughly 5% of the fiscal 2025 EPS consensus.
Previously, Chatterjee pegged the S24 shipments at around 40 million units, with 20 million being the high-end Ultra models, where Qualcomm had secured a 70% share due to its use in the U.S. and China markets. With the S25, Qualcomm’s share jumps to 100%, highlighting a strategic win for the company in one of the world’s leading smartphone markets.
This development prompted Chatterjee to place Qualcomm on Positive Catalyst Watch ahead of its upcoming earnings release, scheduled for Wednesday, Feb. 5, after the market closes, expecting the share gain at Samsung to be a significant driver of performance. Despite these positive forecasts, Qualcomm’s stock saw a slight decline on Friday, closing at $172.11 — down 1.29% for the day — and slipping further to $172.05 in after-hours trading. However, the stock has seen a 12% surge year-to-date, reflecting broader market confidence in Qualcomm’s strategic direction and market expansion.
This move by Samsung to exclusively use Qualcomm’s Snapdragon chips in the S25 series not only validates Qualcomm’s technological edge but also potentially sets a precedent for future collaborations, driving further growth in Qualcomm’s core and emerging markets.
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