Mizuho lowers Qualcomm stock price target to $185 on QCT margin concerns

Published 31/07/2025, 14:52
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Investing.com - Mizuho (NYSE:MFG) has reduced its price target on Qualcomm (NASDAQ:QCOM) to $185.00 from $190.00 while maintaining an Outperform rating on the stock. According to InvestingPro analysis, Qualcomm appears undervalued at its current price of $152.68, with a P/E ratio of 16.12 that looks attractive relative to its growth prospects.

The adjustment follows Qualcomm’s latest quarterly report, which showed in-line revenue of $10.37 billion for the June quarter and guidance for the September quarter of $10.7 billion, also in line with expectations but with modestly lower QCT (Qualcomm CDMA Technologies) margins. The company maintains strong financial health with an InvestingPro Health Score of "GOOD," supported by impressive revenue growth of 16.15% over the last twelve months.

For the September quarter, Qualcomm expects its QCT segment to grow 3% quarter-over-quarter, while its QTL (Qualcomm Technology Licensing) segment is projected to increase 2% quarter-over-quarter, driven by handset flagship launches and the Snapdragon Elite and x85 platforms.

The company’s automotive segment is forecast to grow 11% quarter-over-quarter, with 12 new design wins and 20 OEM programs launching Snapdragon RIDE ADAS (Advanced Driver Assistance Systems) in the next 18 months.

Qualcomm also noted that its Alphawave acquisition is expected to close in the first quarter of 2026, which will expand its data center capabilities for ARM-CPU AI inference clusters, while the company reported no pull-ins from China in its outlook.

In other recent news, Qualcomm reported its fiscal third-quarter 2025 earnings, exceeding analyst expectations. The company achieved an earnings per share (EPS) of $2.77, surpassing the forecasted $2.71. Qualcomm’s revenue was reported at $10.37 billion, slightly higher than the anticipated $10.33 billion. These results reflect a positive performance for the company in this quarter. Additionally, the earnings announcement was followed by a modest increase in Qualcomm’s stock price. The company’s financial results highlight its ability to deliver above projected earnings and revenue figures. Investors and analysts will likely continue to monitor Qualcomm’s performance in the coming quarters.

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