Why analysts are raving about this AI stock as a ‘bullish fresh pick'

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 $200 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 $200 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, 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 $1.6 billion in shareholder returns last quarter, including $731 million in stock repurchases, indicating strong financial health [6].