J.P. Morgan analyst Samik Chatterjee has maintained their bullish stance on QCOM stock, giving a Buy rating on May 15.
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Samik Chatterjee has given his Buy rating due to a combination of factors that highlight Qualcomm’s strategic positioning for future growth. One of the key elements is Qualcomm’s potential acquisition of Alphawave, which, while not significantly impacting financials immediately, holds substantial strategic importance. This acquisition is expected to bolster Qualcomm’s capabilities in the Datacenter market, particularly in expanding its reach in Datacenter connectivity IP, complementing its previous acquisition of Nuvia for datacenter CPU and AI inference chip design.
Qualcomm’s strategy to diversify and grow in new markets, such as Autos and IoT, has been successful, and the acquisition of Alphawave is seen as a continuation of this playbook. The acquisition is anticipated to enhance Qualcomm’s offerings in AI and Datacenter infrastructure, leveraging Alphawave’s vertically integrated capabilities. Additionally, Qualcomm’s strong balance sheet and the modest size of the acquisition support an accretive deal, with potential value creation stemming from scaling with customers and leveraging Alphawave’s broad capabilities in Design IP, Custom Silicon, and Connectivity products.
In another report released on May 15, Bernstein also maintained a Buy rating on the stock with a $185.00 price target.