QCOM Mixed Growth Outlook Leads Seaport to Start Coverage with Neutral Call

Seaport Research analyst Jay Goldberg recently initiated coverage of QUALCOMM Incorporated (NASDAQ:QCOM) with a Neutral rating and no price target. QCOM develops and sells foundational technologies for the wireless industry.

In an investor note, the analyst noted that Qualcomm's core market was not growing, and it was losing share there on multiple fronts. The analyst added that the company's efforts to diversify beyond mobile were mixed and would all take years to materialize.

Seaport saw a lack of any serious near-term catalyst for the shares.

At the end of April, the firm forecasted fiscal Q3 revenues of $9.9 billion to $10.7 billion and non-GAAP EPS of $2.60 to $2.80. QCT revenues are expected to range between $8.7 billion and $9.3 billion, with year-over-year growth of approximately 12%, led by handsets, IoT, and automotive segments. This includes 10% growth in handset revenues and 15%-20% growth in IoT and automotive revenues. CFO Akash Palkhiwala has acknowledged ongoing monitoring of macroeconomic conditions, including tariffs, which are incorporated into the guidance.

While we acknowledge the potential of QCOM, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than QCOM and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 33 Most Important AI Companies You Should Pay Attention To and 30 Best AI Stocks to Buy According to Billionaires

Disclosure: None.