Qualcomm’s Licensing Industry Has an Apple Downside, Analysts Say

Key Takeaways
Qualcomm stocks slid Thursday after the chipmaker reported fiscal first-quarter earnings from licensing that overlooked expectancies. The chipmaker licenses its patented applied sciences to firms together with Apple, however the iPhone maker is anticipated to transport a few of its portfolio in area, analysts stated. Different analysts stated a significant smartphone improve cycle, which would receive advantages Qualcomm, may well be a minimum of a yr away.
Qualcomm (QCOM) stocks slid Thursday as analysts raised considerations concerning the corporate’s relationships with main smartphone makers Apple (AAPL) and Huawei following the corporate’s fiscal first-quarter effects.

The chipmaker licenses its patented applied sciences to one of the international’s greatest tech firms, together with Apple. Alternatively, Apple is shifting a portion of its iPhone portfolio in area later this yr, which has buyers nervous, analysts at JPMorgan stated. The expiration of a take care of Chinese language smartphone massive Huawei “could also be serving to restrict upside,” the analysts added. 

First-quarter licensing earnings overlooked expectancies, whilst total gross sales reached a document top and beat Side road estimates, sending stocks of Qualcomm down just about 4% Thursday to $169.32. The marketplace response has been “crushed by way of investor considerations across the components outdoor of Qualcomm’s keep watch over,” JPMorgan stated, reducing its value goal to $195 from $200 however keeping up an “obese” ranking. 

Citi analysts stated a smartphone improve cycle, which would receive advantages Qualcomm, may well be a minimum of a yr away, given the loss of a “killer app” that may force customers to spring for a brand new software. The analysts reiterated a “impartial” ranking and $185 goal. 

In the meantime, Financial institution of The united states maintained its bullish $245 value goal, mentioning “Qualcomm’s skill to steer with smartphone applied sciences and diversify its portfolio” into automobile modems and chips for laptops. Right through the primary quarter, Qualcomm additionally grew its proportion with Apple rival Samsung, the financial institution famous, powering its Galaxy S25 gadgets.

Regardless of Thursday’s losses, stocks of Qualcomm are up greater than 14% over the last one year.

Author: OpenAI