Challenging Outlook for Qualcomm: Sell Rating Amid Apple Modem Loss and Market Pressures

Aaron Rakers, an analyst from Wells Fargo, reiterated the Sell rating on Qualcomm (QCOM – Research Report). The associated price target was lowered to $140.00.

Aaron Rakers has given his Sell rating due to a combination of factors impacting Qualcomm’s financial outlook. The company’s significant exposure to consumer markets and China, coupled with the anticipated loss of business from Apple modems, presents a challenging environment. Additionally, concerns surrounding tariffs and their potential impact on demand further contribute to the cautious stance on Qualcomm’s stock.
Aaron Rakers also highlights Qualcomm’s expected 70% share in the 2025 iPhone launch, which may not fully offset the revenue pressures from losing Apple’s business in the long term. The company’s guidance for the third quarter of 2025 reflects these challenges, with revenue and earnings per share estimates being adjusted downward. Overall, the combination of these factors leads to a Sell rating, with a price target set at $140, reflecting a compressed price-to-earnings ratio.