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Why analysts are raving about this AI stock as a ‘bullish fresh pick'
QCOMQualcomm(QCOM) Finbold·2024-07-23 12:18

Core Viewpoint - The recent pullback in the tech sector has significantly impacted Qualcomm (QCOM) stock, which has shown signs of recovery following a positive trading session and analyst upgrades predicting substantial upside potential [1][2][5]. Group 1: Stock Performance - QCOM stock fell below the 200threshold,experiencinga2.92200 threshold, experiencing a 2.92% decline last month and extending losses to 7.15% over five days due to intensified sell-offs [1]. - A recent trading session saw QCOM recover with a gain of 4.70%, bringing the stock price to 194.97, with pre-market gains of 1.05% further aiding recovery [1]. Group 2: Analyst Insights - Baird analysts upgraded Qualcomm's stock price target from 200to200 to 250, citing positive initial channel feedback and predicting a potential 30% upside from current levels [2]. - Tigress Financial Partners analyst Ivan Feinseth raised the 12-month target price for Qualcomm to 270,reflectingthecompany′sadvantagesinAIcapabilitiesandcommunicationtechnologies[5].Group3:MarketDemandandProductDevelopment−TheprocurementestimatefortheiPhone16hasincreasedtoover90millionunits,drivenbyAI,whichisexpectedtocontributetodouble−digitincreasesinaveragesellingprices(ASPs)forQualcomm′shandsets[2].−QualcommisanticipatedtobenefitfromAIintegrationinhigh−endChinesephonesandthenext−genGalaxyplatform,withrisingASPsandRFcomponentcontentexpected[3].Group4:BusinessGrowthandFinancialHealth−Qualcomm′sbusinessisexpandingrapidly,drivenbyrevenuefromSnapdragon−powereddevices,recordautomotivesales,andopportunitiesforon−deviceAIintegration[6].−Thecompanyreporteda6.25270, reflecting the company's advantages in AI capabilities and communication technologies [5]. Group 3: Market Demand and Product Development - The procurement estimate for the iPhone 16 has increased to over 90 million units, driven by AI, which is expected to contribute to double-digit increases in average selling prices (ASPs) for Qualcomm's handsets [2]. - Qualcomm is anticipated to benefit from AI integration in high-end Chinese phones and the next-gen Galaxy platform, with rising ASPs and RF component content expected [3]. Group 4: Business Growth and Financial Health - Qualcomm's business is expanding rapidly, driven by revenue from Snapdragon-powered devices, record automotive sales, and opportunities for on-device AI integration [6]. - The company reported a 6.25% dividend increase to 0.85 per share and 1.6billioninshareholderreturnslastquarter,including1.6 billion in shareholder returns last quarter, including 731 million in stock repurchases, indicating strong financial health [6].