Benchmark Stays Bullish on Qualcomm (QCOM) -Here's Why

QUALCOMM Incorporated (NASDAQ:QCOM) is one of the AI Stocks Making Waves on Wall Street.  On July 31, Benchmark analyst Cody Acree reiterated a “Buy” rating on the stock with a $200.00 price target.

The firm noted how Qualcomm’s recent quarterly performance was “very clean,” with the company reporting growth across all major business categories. However, there have been major concerns about the financial impact of losing Apple’s business.

The company has, however, communicated the said issue effectively, and there has been sufficient opportunity for them to factor this in their models and valuations, the firm noted.

Qualcomm shares were weak after its earnings report as investors were disappointed that it’s earnings per share (EPS) guidance mid-point only matched Street estimates instead of exceeding them.

“Automotive grew 21% annually IoT grew 24%, and even Handsets managed to grow 7%, driven by demand for Snapdragon 8 Elite platform in premium-tier handsets. While a big part of the company’s current and recent weakness is the result of lingering investor fears regarding the long-term financial impact of the loss of Apple’s business. We believe the company has been communicating this issue well with the Street for quite some time and analysts and investors have had ample opportunity to factor the event into models and estimates, and ultimately investors have factored this into Qualcomm depressed valuation."

"During this same time, Qualcomm has been aggressively pursuing areas of diversification, with Autos now at $1 billion of quarterly contribution and IoT at almost $1.7 billion.”

QUALCOMM Incorporated (NASDAQ:QCOM) develops wireless technologies, supplies chips for mobile, automotive, and IoT, licenses patents, and invests in emerging tech.

While we acknowledge the potential of QCOM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 AI Stocks Making Waves on Wall Street and 10 AI Stocks Analysts Are Watching Closely

Disclosure: None.