Qualcomm (NASDAQ:QCOM) Coverage Initiated by Loop Capital Markets

• Loop Capital Markets has initiated coverage on Qualcomm (NASDAQ:QCOM) with a "Hold" rating and a stock price of $168.29.
• Qualcomm's strong performance in its fourth-quarter earnings report, particularly in handset revenue and AI chip performance, positions the company for future growth.
• The company announced a $15 billion stock repurchase program, despite concerns over future growth due to potential competition from Apple's in-house 5G modems.

On November 11, 2024, Loop Capital Markets initiated coverage on Qualcomm (NASDAQ:QCOM) with a "Hold" rating. At that time, the stock price was $168.29. Qualcomm is a leading player in the semiconductor industry, known for its innovations in wireless technology and AI chips. It faces competition from companies like Intel and MediaTek.

Qualcomm's shares have been stagnant recently, but the growing AI smartphone market is expected to benefit the company. In its fourth-quarter earnings report, Qualcomm exceeded expectations, showing strong growth in handset revenue and AI chip performance. This positions the company well for future growth, despite the current "Hold" rating.

The company's valuation is attractive, with a low price-to-earnings ratio and strong projected revenue growth. This presents significant upside potential for investors. Despite the positive earnings report, analysts remain divided on the future prospects of the handset market, which could impact Qualcomm's performance moving forward, as highlighted by Benzinga.

Qualcomm has announced a substantial $15 billion stock repurchase program, reflecting confidence in its financial health. However, concerns about future growth persist due to Apple's potential shift to developing its own in-house 5G modems. This transition could reduce Qualcomm's revenue by 3% from fiscal year 2026 to 2028.

Despite these challenges, Qualcomm's Snapdragon 8 Elite and growth in the AI PC market present potential opportunities. The current stock price of $168.29 reflects a decrease of 1.533% or $2.62. Over the past year, QCOM has reached a high of $230.63 and a low of $122.63, with a market capitalization of approximately $186.97 billion.