Qualcomm Inc's (NASDAQ:QCOM) shares dropped 13% in just a month; this presents an excellent entry point for investors looking to capitalize on a promising upswing driven by artificial intelligence adoption.
That's according to to JPMorgan analyst Samik Chatterjee, who revised the price target upwards to $235 for December 2025 — a potential 34% upside.
The "share price pull-back offers entry point," Chatterjee noted.
"We see double-digit revenue growth consistently in the medium-term," he added. Qualcomm's strategic focus on AI smartphones, AI PCs, and continued expansion in the automotive sector is expected to fuel the anticipated growth.
Qualcomm 'Double-Digit Revenue Growth'
Qualcomm's strategy hinges on its leadership in AI-enabled technologies.
AI smartphones' ramp-up ensures "double-digit content increases," and the Snapdragon X Elite chipsets lead the charge in AI PCs, positioning Qualcomm to capture substantial market share.
Chatterjee notes, "We expect FY25 to mark Qualcomm's return to double-digit revenue growth with strong gains in both Handsets and Automotive sectors."
Qualcomm plans to expand its footprint in the AI PC market, reinforcing the bullish sentiment. Chatterjee predicts that Qualcomm's PC-related revenue will skyrocket from $300 million in 2024 to $3.7 billion in 2027.
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Challenges: Competitors launching their chipsets may cause the market share for Qualcomm's AI PCs to moderate.
Chatterjee acknowledges, "Our market share assumptions imply Qualcomm's PC revenues ramping from modest beginnings to substantial figures, but competition will intensify."
Still, Chatterjee maintains an Overweight rating on Qualcomm, highlighting that the double-digit revenue growth will likely lead to a "multiple re-rating" of the stock.
By applying a 20x P/E multiple to 2027 earnings estimates, Chatterjee signaled confidence in Qualcomm's ability to outperform market expectations.
As Qualcomm navigates this transformative phase, investors may find the recent pullback a compelling opportunity to engage with a stock poised for substantial growth. The combination of AI innovation, strategic market expansion, and a favorable entry point makes Qualcomm a stock to watch.
Price Action: Qualcomm is trading at $180.77 per share, up more than 3% at last check Friday.
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