Qualcomm’s Growth Potential and Stability Justify Buy Rating Amidst Market Challenges

Bernstein analyst Stacy Rasgon has maintained their bullish stance on QCOM stock, giving a Buy rating yesterday.

Stacy Rasgon has given his Buy rating due to a combination of factors that highlight Qualcomm’s potential for growth and stability. Despite past challenges, such as the Apple modem loss and competition concerns, these issues are now well-known and factored into the stock’s current valuation. The smartphone market, a significant part of Qualcomm’s business, has stabilized, and the company’s revenue sources are diversifying beyond just smartphones.
Moreover, Qualcomm’s position in the semiconductor industry is strengthening, with the merchant space consolidating and pricing trends improving. The company’s legal challenges have been successfully navigated, reducing regulatory risks. Additionally, there is a promising growth opportunity in AI at the edge, which is not fully appreciated by the market. With the stock trading at a low valuation and earnings expected to grow in double digits, Rasgon sees limited downside and significant upside potential, justifying the Buy rating.

In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $160.00 price target.