While Qualcomm’s (NASDAQ:QCOM) processors aren’t often front of mind when it comes to most users, it’s been making a lot of strides in that direction of late. However, those strides got a serious reversal when issues of performance were considered, particularly in terms of running certain software. That was enough for investors to reconsider and pull out, taking over 5% of Qualcomm’s market cap with them in the closing minutes of Thursday’s trading.
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Word emerged about Qualcomm’s Snapdragon processors, which were put to work in Samsung (OTHEROTC:SSNLF) Galaxy Book 4 Edge laptops. On the surface, this is a combination that should have gone smoothly, at least until it tried to run software. Reports noted that the Galaxy Book 4 Edge couldn’t handle several bits of Adobe (NASDAQ:ADBE) software and choked on games of comparatively modest demand like “Fortnite” and “League of Legends.”
A Glimmer of Hope
Yet, even as this disaster emerged, word from CFRA offered a note of hope for investors. Analyst Angelo Zino noted that there were significant concerns about the smartphone market, but Qualcomm is growing beyond that market. In fact, Qualcomm’s presence in helping to bring artificial intelligence to mobile devices is proving a welcome boost to its fortunes. Even though its personal computer efforts aren’t exactly working out, there’s room to grow therein, and Qualcomm is making headway.
Is Qualcomm a Buy, Hold, or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on QCOM stock based on 19 Buys, eight Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After an 89.53% rally in its share price over the past year, the average QCOM price target of $198 per share implies 8.41% downside risk.
