For a while there, things were not looking good for chip stock Qualcomm (NASDAQ:QCOM). It looked like one of its major customers, Apple (NASDAQ:AAPL), might have been ready to throw Qualcomm over for one key component of the iPhone line. However, new reports suggest that replacing Qualcomm hasn’t been that easy. Qualcomm, in turn, is up fractionally on the news.
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Reports note that Apple’s efforts to replace Qualcomm in the iPhone construction process aren’t bearing fruit like it would like. In fact, its plans to deliver said component made in-house by spring 2025 have been dashed. And this was after Apple already delayed the project once previously, reports noted. Now, Apple is absolutely on the hook with Qualcomm until 2026, following an extension of Qualcomm’s contract. And it’s a safe bet that the contract will have to be extended; Apple may manage to get a new device ready to go by 2025, as currently planned, but that doesn’t mean it will be ready for wide release –let alone mass production—by then.
Everything Apple Does, Qualcomm Can Do…Too…Mostly
Meanwhile, as Apple tries to get itself out from under Qualcomm, Qualcomm is frantically imitating Apple. Though it’s not always working out so well. Qualcomm’s own attempt at an Emergency SOS system, similar to Apple’s, was just shut down days ago. Apparently, the tool existed for 10 months but had no customers at all, so Qualcomm pulled out. A slightly better plan is in the making with Snapdragon Seamless, a move that will help improve connectivity between Apple’s devices and Android’s. However, it reportedly depends on other brands being willing to add Qualcomm’s systems to their devices’ operating code.
What is the Price Target for Qualcomm?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on QCOM stock based on 14 Buys, six Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 7.91% rally in its share price over the past year, the average QCOM price target of $135.83 per share implies 5.34% upside potential.
