Qualcomm’s Strong Q1 Performance and Strategic Diversification Drive Buy Recommendation

DBS analyst Fang Boon Foo has maintained their bullish stance on QCOM stock, giving a Buy rating today.

Fang Boon Foo has given his Buy rating due to a combination of factors including Qualcomm’s impressive performance in the first quarter of fiscal year 2025, which exceeded expectations across multiple segments. The company also provided strong revenue guidance for the second quarter, indicating confidence in its future performance.
Qualcomm’s leadership in the smartphone market and its strategic diversification into high-growth areas like 5G, automotive, IoT, and edge networking are key drivers for this positive outlook. The extension of its partnership with Apple until 2026 provides stability and earnings visibility, while the company’s consistent capital return policy and dividend growth further enhance its investment appeal. Despite some risks related to smartphone demand and China’s market recovery, the overall growth potential in non-handset sectors supports the Buy recommendation.

In another report released today, Robert W. Baird also maintained a Buy rating on the stock with a $216.00 price target.