DBS analyst Fang Boon Foo has maintained their bullish stance on QCOM stock, giving a Buy rating on June 3.
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Fang Boon Foo has given his Buy rating due to a combination of factors that highlight Qualcomm’s strategic positioning and growth potential. The acquisition of Alphawave is a pivotal move for Qualcomm, allowing it to enhance its Oryon CPU and Hexagon NPU offerings, aligning with its long-term strategy to diversify into high-growth sectors. This acquisition supports Qualcomm’s efforts to capitalize on the expanding 5G market across various segments such as premium handsets, automotive, IoT, and edge networking, with strong partnerships with industry leaders like Apple, Samsung, Mercedes, and BMW further solidifying its competitive advantage.
Additionally, Qualcomm’s diversification strategy aims to reduce reliance on the cyclical smartphone market by expanding into more stable and rapidly growing sectors. The company’s roadmap projects significant revenue growth from non-handset segments, particularly in automotive, PCs, and IoT. Furthermore, Qualcomm’s consistent capital return policy, including a commitment to return 100% of free cash flows, underscores its financial stability and shareholder value proposition. Despite some near-term uncertainties related to tariffs and consumer demand, Qualcomm’s robust global supply chain and market positioning mitigate these risks, supporting the Buy rating.
In another report released on June 3, Bernstein also maintained a Buy rating on the stock with a $185.00 price target.