Analysts recently likened semiconductor giant Qualcomm (QCOM, Financial) to Rodney Dangerfield, suggesting it has been underappreciated. However, the company's stock rose by about 1.58% in recent trading, indicating investor optimism about its future. Despite a humorous comparison by Bernstein analyst Stacy Rasgon, who kept an "outperform" rating and a $185 price target, Qualcomm is seen to have a 26% upside.
Rasgon noted that as the smartphone market stabilizes and competition eases, concerns about Qualcomm's growth prospects are rapidly diminishing. Although losing Apple's (AAPL) chip orders was a setback, the impact has been absorbed. As the smartphone market rebounds, Qualcomm's growth potential looks promising. Another growth area for Qualcomm is the upcoming Snapdragon chips. The Snapdragon X2 Elite, rumored to have up to 18 cores and 64GB RAM, is expected to enhance Qualcomm's presence in the PC market. This new chip, currently undergoing testing, could strengthen Qualcomm's competitiveness in high-performance chips.
Wall Street analysts generally rate Qualcomm as a "moderate buy," with a consensus target price of $177.75, indicating a 19% upside despite a 28% stock drop over the past year, showcasing ongoing confidence in Qualcomm's long-term prospects.
