Why Qualcomm's Latest Price Target Can't Be Ignored

Core Viewpoint - Qualcomm Inc. is experiencing a lack of momentum despite a solid earnings report and a 25% gain since April, failing to match the sustained uptrend of larger peers like NVIDIA and Broadcom [1][2] Financial Performance - Qualcomm's Q2 earnings exceeded analyst expectations across the board, with strong performance in its QCT segment, handsets, automotive, and IoT [4] - The current stock price is $155.71, with a 12-month price target of $186.96, indicating a potential upside of 20.48% [7] Analyst Insights - Bank of America maintains a Buy rating on Qualcomm but has reduced its price target from $245 to $200, suggesting a 30% upside from the current stock price [3] - The updated price target reflects a 15x multiple on the 2026 earnings estimate, positioning Qualcomm as relatively cheap compared to the sector, especially against NVIDIA's P/E of 46 [7][8] Market Challenges - There are signs of stagnation in Qualcomm's sales trends, particularly due to Apple bringing more manufacturing in-house, which may significantly reduce Qualcomm's contribution to headset sales [6] - Despite these challenges, Qualcomm's growth in AI PCs and data centers may help mitigate some negative impacts, although there are no immediate catalysts to drive renewed bullishness [7][8] Technical Analysis - Qualcomm's stock is approaching a critical inflection point, having trended down for the past two weeks, with a bearish crossover in the MACD indicating potential negative momentum [9] - Investors are looking for the stock to rebound towards $160 to avoid setting a lower low and risking a breakdown of the uptrend [10] Long-term Outlook - For investors willing to accept short-term volatility, Qualcomm presents a mix of value and long-term growth potential, particularly in AI [11]