Key takeout
Qualcomm (QCOM) shares were slided on Thursday. Analysts raised concerns about its relationship with leading smartphone manufacturers Apple (AAPL) and Huawei following the company’s first quarter results.
Chipmaker licenses patented technology to some of the world’s largest high-tech companies, including Apple. However, Apple has moved a portion of its iPhone portfolio inside the company later this year, and investors are worried, JPMorgan analysts say. The expiration of the contract with Chinese smartphone giant Huawei “is also helping to limit the rise,” the analyst added.
First quarter license revenue missed forecasts. Overall sales reached record highs, reaching street estimates, with Qualcomm’s shares falling nearly 4% on Thursday to $169.32. Market responses are “overwhelmed by investors’ concerns about factors other than Qualcomm’s control,” Jpmorgan said, lowering its price target from $200 to $195, but maintaining its “overweight” rating. .
Citi analysts said the smartphone upgrade cycle that benefits Qualcomm could be at least a year away. The analyst repeated the “neutral” rating and the $185 target.
Meanwhile, Bank of America has set a price target of $245, citing “Qualcomm’s ability to lead smartphone technology and diversify its portfolio” and cites “Qualcomm’s ability” for automotive modems and chips for laptops. I’ve maintained it. In the first quarter, Qualcomm also expanded its share with Apple’s rival Samsung, powering the Galaxy S25 devices, the bank said.
Despite Thursday’s losses, Qualcomm stocks have risen more than 14% over the past 12 months.
