Qualcomm Stock Surges With Samsung Partnership For Galaxy S25: What's Driving The Growth?

Qualcomm Inc. QCOM has been on a tear, with its stock up 53.65% year-to-date and 85.46% higher over the past year. The latest boost? Renowned tech analyst Ming-Chi Kuo reports that Samsung’s upcoming Galaxy S25 will exclusively feature Qualcomm's next-generation chipset, propelling Qualcomm shares higher.

The news sent Qualcomm shares soaring, closing 3.20% higher on Monday. Kuo's predictions underscore the robust demand for Qualcomm's advanced chipsets and their crucial role in flagship devices like the Galaxy S25.

Samsung’s Switch To Qualcomm

Kuo revealed that Qualcomm will be the sole SoC supplier for the Galaxy S25, significantly shifting from the Galaxy S24, where Qualcomm supplied only 40% of chipsets. The decision stems from Samsung’s struggle with lower-than-expected yields in its 3nm Exynos 2500 chips.

Consequently, Qualcomm’s Snapdragon 8 Gen 4 will dominate the S25, with prices for the chip expected to surge by 25-30%.

Related: Advantage Qualcomm: World’s Largest Smartphone Maker Could Switch Completely To Snapdragon Chips For Its Next Flagship

Qualcomm's Growth Drivers

Kuo has also recently highlighted two new growth drivers for Qualcomm.

1. The SM8750 (Snapdragon 8 Gen 4) will enter mass production in the second half of 2024, with a significant price hike due to TSMC’s advanced N3E node technology. AI demand in high-end smartphones is expected to drive high single-digit shipment growth for this chip.
2. Qualcomm plans to double shipments of its X Elite and X Plus chips for Windows on ARM (WOA) by 2025, with new low-cost variants. These developments signal Qualcomm’s expanding influence in various tech segments.

QCOM Stock Riding The Bullish Wave

From a technical perspective, Qualcomm’s stock is riding a bullish wave. Its current price sits above its 5, 20, 50, and 200-day moving averages, all of which indicate strong buying signals. This trend reflects investor confidence and the stock's potential for further gains.

Samsung’s endorsement and the expected price hike for the Snapdragon 8 Gen 4 signal sustained growth for Qualcomm. As it cements its status in the smartphone arena and ventures into new markets, Qualcomm continues to be a pivotal force in the tech sector.

Qualcomm's strategic moves and technical strength suggest it's not just keeping pace with the market—it's leading the charge.

Investors will be keen to see how the partnership with Samsung and new growth drivers play out in the coming months.

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