Qualcomm Inc. (NASDAQ:QCOM) is currently being highlighted as one of the most undervalued stocks on the market. On February 2, Cantor Fitzgerald adjusted its price target for Qualcomm from $185 to $160 while maintaining a Neutral rating. Although the firm projects that Qualcomm will surpass expectations for the December quarter, it anticipates a cautious outlook for the forthcoming quarters, indicating guidance that is slightly below consensus for March and significantly lower for June. This adjustment is largely due to factors such as a reduction in Apple’s modem share, Samsung’s shift towards in-house modem production, and a contraction in the Chinese handset market.
In a related move on January 25, Mizuho analyst Vijay Rakesh also cut Qualcomm’s price target from $175 to $160, citing insights from an industry-wide call about the handset market. Rakesh noted a 4% year-over-year reduction in global handset estimates for 2026, with expectations of further declines in the latter half of the year due to ongoing memory shortages and pricing challenges, prompting a decrease in price targets across the sector.
Qualcomm plays a pivotal role in the wireless industry, developing and commercializing essential technologies through its three primary segments: Qualcomm CDMA Technologies, Qualcomm Technology Licensing, and Qualcomm Strategic Initiatives.
While the current landscape may appear challenging, Qualcomm’s fundamental technologies position it favorably within the industry. Investors seeking potential in the tech sector may find opportunities exist in different areas such as AI-related stocks, which are seen to have robust growth potential amidst the current market fluctuations. As always, diligent investment strategies combined with informed market analysis can pave the way toward lucrative opportunities in the evolving tech sector.