Qualcomm (QCOM) Beats Estimates as Piper Sandler Reiterates Overweight Rating

QUALCOMM Incorporated (NASDAQ:QCOM) is one of the 10 AI Stocks Analysts Are Watching. On February 5, Piper Sandler analyst Harsh Kumar reiterated an Overweight rating on the stock with a $200.00 price target. The rating affirmation follows QCOM’s December 2026 quarter results.

The company reported stronger-than-expected earnings for the first quarter of fiscal 2026, with EPS of $3.50, beating the forecast of $3.40. It also exceeded revenue expectations, posting $12.25 billion compared to the expected $12.11 billion.

While QCOM did beat expectations, its March guidance was considerably tempered by memory constraints at certain OEMs, particularly in China, which led to reduced supply forecasts.

For the March 2026 quarter, QCOM’s handset business is forecast to decline sharply by 22% sequentially. Meanwhile, other key segments, such as Automotive and IoT, continue to establish strong growth.

The research firm does not anticipate a significant recovery in the handset business through September 2027 due to tight memory conditions. It also mentioned that 2027 will be impacted by the Apple agreement.

Qualcomm is expected to provide clarity regarding its data center strategy and ramp during its upcoming analyst day. This, the firm believes, could potentially boost estimates.

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.

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Disclosure: None. This article is originally published at Insider Monkey.