QUALCOMM Incorporated(QCOM.US) released its earnings report for the fourth quarter and fiscal year ending September 29, 2024, on November 6 in San Diego. 

The report showed that Qualcomm's adjusted revenue for the fourth quarter reached US$10.244 billion, marking a 19% year-over-year increase. Net income for the quarter was US$2.92 billion, with earnings per share at US$2.69, a significant rise from US$1.489 billion and US$1.23 per share in the same period last year.

For the fiscal year 2024, Qualcomm's total revenue amounted to US$38.962 billion, representing a 9% increase from fiscal year 2023. Additionally, Qualcomm's board approved an extra US$15 billion stock buyback.

Mobile Chip Sales Exceed US$6 Billion, Auto Business Up 86%

In detail, Qualcomm's QTL (technology licensing) business revenue for the fourth quarter was US$1.521 billion, a 21% year-over-year increase. The QCT (chipset) business, which includes mobile, automotive, and other chips, saw its sales grow 18% to US$8.678 billion for the quarter.

As the leading supplier of smartphone chips, Qualcomm is benefiting from the smartphone market's recovery. Fourth-quarter mobile chip sales rose by 12% to US$6.1 billion. Qualcomm CFO Akash Palkhiwala mentioned in an analyst call that their Android revenue grew over 20% year-over-year.

Notably, Qualcomm has diversified from being a smartphone supplier to investing heavily in chips for PCs, vehicles, and industrial machines. In Q4, Qualcomm's automotive business saw an 86% year-over-year increase, reaching US$899 million. The company reported having a multibillion-dollar pipeline with automakers and highlighted this as the fifth consecutive quarter of double-digit growth in the auto segment, with expectations for a 50% year-over-year increase in automotive sales in the current quarter.

Additionally, Qualcomm's IoT (Internet of Things) business reported a 22% increase in Q4 revenue, reaching US$1.68 billion. This segment includes industrial chips, chips for Meta Quest headsets, Ray-Ban smart glasses, and new chips for Microsoft's Windows laptops. Qualcomm CEO Cristiano Amon stated in an analyst call, "We will continue transforming Qualcomm from a wireless communications company to a connectivity and computing company for the AI era."