Qualcomm CEO: ‘we’re winning the future of automotive semiconductor business’

Shares of Qualcomm Inc (NASDAQ: QCOM) are down roughly 35% versus the start of the year but CEO Cristiano Amon says the underlying business continues to be strong.

Qualcomm has a future in the auto industry

Amon sees big future for the multinational chipmaker in the automotive industry. In a recent interview on CNBC’s Mad Money with Jim Cramer, the chief executive said:

In April, the San Diego-headquartered firm said chip sales jumped 52% year-on-year in its fiscal second quarter to $9.55 billion – well ahead of $8.86 billion that the Wall Street had expected.

The impact of lockdown in China

CEO Amon agreed the ongoing lockdown related to the resurgence of COVID in China is a near-term headwind. Reiterating confidence on the CNBC interview, however, he said:

Wall Street, on average, is “overweight” on QCOM with an average price target of $204 a share that translates to a 70% upside from here. The stock currently trades at a PE multiple of 12.39.