Loop Capital Upgrades Qualcomm (QCOM) to Buy, Sees Stock Nearing Turning Point

QUALCOMM Incorporated (NASDAQ:QCOM) is included among the Goldman Sachs Dividend Stocks: Top 14 Stock Picks.

A February 24 report by CNBC said Loop Capital sees QUALCOMM Incorporated (NASDAQ:QCOM) nearing a turning point. The firm believes some of the pressures that weighed on the stock are starting to ease, while new growth opportunities are beginning to take shape. Analyst Gary Mobley upgraded Qualcomm to a Buy from Hold. He also raised his price target to $185 from $140, which implies about 32% upside from current levels.

Qualcomm’s shares have faced a difficult stretch. The stock has fallen 13% over the past year and is down another 18% so far this year. The analyst made the following comment:

“There are many reasons why QCOM’s shares have underperformed the chip sector on a YTD, 1-yr-, 3-yr & 5-yr basis. Most obvious, the company is not a data center AI beneficiary, at least not yet. YTD, the share price underperformance has been fueled by a perfect storm of circumstances.”

Mobley expects improving chip supply conditions to support a broader recovery. This shift could help Qualcomm regain momentum. He also pointed to the company’s upcoming analyst day, expected in early June, as an important moment. Qualcomm is likely to share updates on its efforts to expand beyond smartphones and provide more clarity on its data center plans.

The analyst said Qualcomm’s push to diversify revenue will play a key role in rebuilding investor confidence. He believes the company could announce a new data center customer soon, which would strengthen its long-term outlook. Mobley also expects several headwinds to fade over time. He believes Qualcomm’s business with Samsung will stabilize. At the same time, its reliance on Apple is expected to decline, with iPhone-related chip sales projected to make up less than 10% of total revenue. He added that Qualcomm’s automotive and Internet of Things segments are positioned for strong growth and could eventually match or exceed its smartphone business by fiscal 2029.

QUALCOMM Incorporated (NASDAQ:QCOM) develops and commercializes core technologies that power much of the wireless communications industry.

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