Given how successful Nvidia’s (NASDAQ:NVDA) ongoing market rally has been, it’s no surprise it has been the chip stock to follow. But when you zoom out for a wider view of the semiconductor space, there are plenty of other names that have been having a moment too.
Qualcomm (NASDAQ:QCOM) shares, for example, are up by 91% over the past year, 48% of which have been generated in 2024 alone. However, according to Tigress’ Ivan Feinseth, a 5-star analyst rated in the top 3% of the Street’s stock pros, there’s still more room to run.
Feinseth has raised his price target on QCOM from $238 to a Street-high of $270, suggesting the stock will climb 27% higher over the next 12 months. His rating stays a Buy. (To watch Feinseth’s track record, click here)
Feinseth’s upbeat outlook hinges on his expectation that Qualcomm will continue to benefit from advancements in AI capabilities and processing power in mobile devices, alongside its leadership in communication technologies and ongoing innovation.
Taking center stage in Feinseth’s bullish assessment are Qualcomm’s s industry-leading Snapdragon mobile processors, which are establishing the company as a leading AI enabler for mobile devices (including portable computers), AR/VR/XR headsets, connected vehicles, and other IoT devices.
The analyst anticipates the company will keep benefitting from the growing adoption of Snapdragon and will be able to capitalize on the introduction and integration of new Snapdragon processors, the release of Windows-based laptops and connected devices powered by Snapdragon processors, and “ongoing automotive integration gains.”
Qualcomm remains the dominant manufacturer of wireless chipsets utilizing baseband technology and is gearing up to expand its Edge Computing and Cloud capabilities. With a number of major technological advancements and innovative product launches, the company is set to re-enter the server market and reduce its dependence on smartphones.
The chip giant is also putting its acquisition of NUVIA to good use, by integrating its CPUs into a wide range of products, including smartphones, next-gen laptops, digital cockpits, ADAS systems, extended reality devices, and infrastructure networking solutions. “Integrating NUVIA’s CPUs and QCOM’s industry-leading mobile GPUs, AI engines, DSP, and dedicated multimedia accelerators will further extend the leadership of QCOM Snapdragon platforms and further position QCOM’s Snapdragon as a leading platform for connected computing,” Feinseth explained.
Amongst Feinseth’s colleagues, 19 join him in the bull camp, 8 others remain on the sidelines with Hold ratings while only 1 recommends to Sell, all culminating in a Moderate Buy consensus rating. That said, the $200.88 average price target implies shares are currently overvalued by ~5.5%. (See Qualcomm stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
