DBS analyst Fang Boon Foo has maintained their bullish stance on QCOM stock, giving a Buy rating yesterday.
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Fang Boon Foo has given his Buy rating due to a combination of factors that highlight Qualcomm’s strategic positioning in the industry. The introduction of AI-smartphones by Samsung, powered by Qualcomm’s advanced Snapdragon 8 Elite platform, underscores Qualcomm’s leadership in the smartphone market. This positions the company to benefit significantly from the growing integration of AI technologies in consumer electronics, reinforcing its competitive edge. Additionally, Qualcomm’s diversified portfolio extends beyond handsets into high-growth sectors such as automotive, IoT, and edge networking, supported by robust partnerships with industry leaders like Apple and Samsung.
Furthermore, Qualcomm’s strategic efforts to diversify its revenue streams contribute to a more stable financial outlook despite the cyclicality of the smartphone industry. The extension of its partnership with Apple until 2026 offers earnings visibility in the handset segment. By shifting focus towards non-handset segments, Qualcomm aims to capitalize on faster-growing sectors, leading to expectations of substantial revenue growth in areas like IoT and automotive. The company’s consistent capital return policy, coupled with its capacity to grow dividends, enhances shareholder value, solidifying its attractiveness to investors.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $195.00 price target.