Qualcomm Stock (QCOM) Falls as Bank of America Assigns Sell Rating on ‘Lukewarm Growth Prospects’

FomoAnxiety · 2026-03-10T19:02:44+00:00

Qualcomm's stock fell 2% after Bank of America issued a Sell rating, citing weak growth prospects and a projected loss of business from Apple. Despite its market leadership, Qualcomm faces challenges from rising memory prices and increased competition, impacting its future growth.

FomoAnxiety

2026-03-10 19:02:44

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Qualcomm QCOM -1.82% ▼ stock was down about 2% on Tuesday, at the time of writing, after Bank of America reinstated coverage of the semiconductor stock with a Sell rating and a price target of $145, citing “lukewarm growth prospects.” QCOM stock has declined 20% year-to-date due to a weak outlook, concerns about loss of business from Apple AAPL +0.61% ▲ , and a slowdown in the smartphone market.

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Bank of America Analyst Is Bearish on QCOM Stock

Bank of America analyst Vivek Arya noted Qualcomm’s weak sales and earnings per share (EPS) CAGR (compound annual growth rate) of 2% and 1%, respectively, over the calendar years 2025 to 2028, compared to the 17% growth in the semiconductor space.

The 5-star analyst noted that while Qualcomm leads the smartphone processors market, it is a mature industry with downside risks from rising memory prices and the “imminent” $7 to $8 billion loss of business from iPhone maker Apple. Arya added that Qualcomm modems will be completely phased out of iPhones by Fall 2027, as Apple shifts to in-house modems.

Moreover, Samsung SSNLF +54.05% ▲ is cutting Qualcomm Galaxy share from 100% to 75%. Additionally, Arya highlighted that Xiaomi XIACF +0.39% ▲ has committed $7 billion to internal chip research and development.

Arya contends that Qualcomm’s diversification into areas such as auto and the internet of things (IoT) and its plans to enter the AI data center market are not enough to offset the challenges in the mobile business.

Is QCOM a Good Stock to Buy?

Wall Street has a Moderate Buy consensus rating on Qualcomm stock based on 10 Buys, 11 Holds, and two Sell recommendations. The average QCOM stock price target of $162.29 indicates 20% upside potential.

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