"JPMorgan analyst Samik Chatterjee downgraded Qualcomm to Neutral, cutting the price target to $140 from $185, citing a low double-digit decline in smartphone shipments expected in 2026."
"Qualcomm's handset business remains its largest revenue driver, and the downgrade signals concerns about the company's slow diversification progress and lack of near-term catalysts for stock improvement."
"Despite growth in automotive and IoT segments, JPMorgan does not believe these areas will sufficiently offset the anticipated softness in Qualcomm's handset business."
"The downgrade comes as Qualcomm's stock has declined roughly 22% year-to-date, suggesting that the market has already begun to price in these concerns."
Qualcomm's stock has been downgraded by JPMorgan from Overweight to Neutral, with a price target cut from $185 to $140. The downgrade reflects concerns over a projected decline in smartphone shipments and Qualcomm's heavy reliance on its handset business. Analysts express skepticism about the company's diversification into automotive and IoT segments, which are growing but may not offset handset weaknesses quickly enough. The stock has already declined 22% year-to-date, indicating that the market is factoring in these risks.
Read at 24/7 Wall St.
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