Qualcomm (QCOM) stock has fallen 6.7% over the past week, dropped 17.9% in the last month, and is down 17.4% over the past year. Wall Street’s analysts are moderately bullish overall, with a 12‑month consensus price target of $164.11, implying upside from the last close at $138.93 despite recent weakness.
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Against this backdrop, a new voice has turned cautious on the shares. Joseph Moore of Morgan Stanley initiated coverage on Qualcomm with a Sell rating and a price target of $132, suggesting slight downside from current levels and signaling he expects the stock to modestly underperform its semiconductor peers.
Moore argues that while Qualcomm has executed well on its diversification strategy, its earnings power may already be optimized for now. He highlights a tough setup for Android smartphones due to a severe memory shortage, combined with weaker handset demand and competitive pressures that could weigh on results.
The analyst notes long‑running share pressures at Apple and expects Qualcomm’s share at Samsung to fall from last year’s windfall 100% of flagship phones back to around 75%. He also flags potential further share loss in the broader Android ecosystem and warns that customer pushback on royalties could become a more meaningful headwind over time.
On the positive side, Moore acknowledges Qualcomm’s strong push into automotive and its investments in compute and data center, but he believes these growth drivers will take time and capital to fully materialize. Overall, he sees the stock in a holding pattern, with modest downward pressure until diversification efforts in areas like automotive and data center clearly translate into stronger earnings. Never miss a stock rating. Find all the latest ratings on TipRanks’ Top Wall Street Analysts page.