Analysts at Deutsche Bank provided their outlook on QUALCOMM Incorporated (NASDAQ:QCOM) ahead of the company’s Q2 earnings, expected to be reported on April 27.

While the analysts expect the company to continue delivering solid quarterly results and guidance, they believe investors are pricing in a weak Q3/Q4 outlook (stock is down around 8% since the start of the month) given growing concerns around China handset inventory/demand amid Covid-related lockdowns, and possible softness in overall consumer demand in the US driven by rising prices overall.

Despite the rise of macro uncertainties across the semiconductor sector, the analysts believe the company can weather this macro storm better than feared due to its share gains, diversification efforts, and strong profitability/Free Cash Flow.